Aternity to focus on growing demand for measuring impact of digital transformation
As companies continue to invest in digital transformation initiatives, they’re having difficulties in measuring the impact on internal operations and customer experience. Riverbed, a vendor that built its chops on network and application performance management, is forming a new division to help companies measure the results of their investments through digital experience management (DEM).
The Lowdown: The new Riverbed division, Aternity, will field cloud-based applications for measuring digital transformation impact on customers through end user experience monitoring (EUEM) and internal operational improvements through application performance management (APM). Through the two applications, Aternity will give chief digital officers (CDOs) and CIOs end-to-end visibility into infrastructure operations, performance, and customer experience.
The Details: Aternity’s EUEM and APM applications cover the spectrum of applications and infrastructure, providing analytics and intelligence for traditional on-premises applications, cloud and hybrid applications and resources, and mobile applications. The Aternity apps are cloud-based and sold exclusively through a recurring subscription model.
The Impact: Customer experience management is a big and growing market opportunity as businesses look to reap more from the $6 trillion being invested in digital transformation over the next several years. Riverbed says it’s targeting a total addressable market for Aternity and digital experience management of $10 billion – 50% of the company’s total market.
Background: Riverbed acquired Aternity in 2016 to complement its lines of application acceleration, cloud migration and acceleration, network performance management, and software-defined wide area network (SD-WAN) product lines. By separating Aternity into a separate, autonomous division, Riverbed will have greater flexibility in developing the DEM business. Riverbed says Aternity grew 100% in 2018 on sales of subscription-based cloud applications.
The Buzz: “Riverbed has two very strong and unique market opportunities around our Digital Networking and DEM platforms,” said Paul Mountford, CEO of Riverbed. “Today, we’re creating the right structure to drive greater focus and deeper expertise for each of these businesses, which will greatly benefit our customers and partners, while enabling Riverbed to fully capitalize and grow in both of these markets.”
“CIOs and their teams recognize that a great digital experience increases customer loyalty, brand equity, and revenues,” said Stephen Elliot, program vice president at IDC. “Organizing a business unit solely focused on Digital Experience Management is a smart, customer-centric business strategy; user experience and application performance monitoring remain top executive investments that are enabling a tighter customer relationship.”