Back in my RedMonk days, I spoke with Zenoss a lot, so it was nice to finally catch-up with them again. They’re moving up-market and adding spending much time beefing up their back-end to handle the resulting, larger scale demands for a systems management platform in the enterprise space.
The full report is available for 451 clients, but here’s the 451 Take:
Zenoss has been undergoing much change in recent years. While other startups were snatched up and folded into larger vendors’ emerging cloud portfolios, Zenoss remained independent. The company has been transforming from its open source roots and now is solidly a commercial company, focusing upmarket on $45,000+ deals instead of smaller accounts. This is a wise move that lifts Zenoss out of competing at the low end (where the expansive nature of the platform makes the proposition too expensive) and allows it to focus on large enterprises that tend to like overstuffed systems management portfolios vs. the point tools from the likes of SolarWinds and others, which gobble up cash in the midmarket and below. As companies are switching their IT over to more cloud-like infrastructures, management vendors like Zenoss that can keep up with the new demands should find opportunities for growth.
Is it working? Further in the report we cover the financial metrics that are known:
The company says it has seen 30% Y/Y revenue growth and is now ‘north’ of $20m in annual revenue (Inc. reported its 2013 revenue at $22.4m). Zenoss says this is a record high and that it has a 93% renewal rate.