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Software Development ToolsCompetitive Landscape and Market Trends February 2016

In 2011, Marc Andreessen somewhat famously wrote, “software is eating the world,”

putting forward the belief that we’re in the midst of a dramatic technological shift in which

software and software-defined companies are poised to dominate large swathes of the

economy. With examples like Amazon displacing traditional booksellers or a proprietary

application for player tracking and evaluation named “Carmine” which helped lead the

Boston Red Sox to three titles in the past decade, the power of software cannot be

understated.

Software is not only disrupting business models in place for centuries (or 86 years of

baseball futility), but also is enabling incumbent vendors across disparate industries to

improve product offerings, drive deeper engagement with customers and optimize selling

and marketing efforts. Most industries (financial services, retail, entertainment,

healthcare, etc.) and large organizations now derive a great deal of their competitive

differentiation from software. As Andreessen wrote, “the days when a car aficionado

could repair his or her own car are long past, due primarily to the high software content.”

But as software has brought benefits, it has also brought increasing demands for business

agility – and the software industry itself has been changed. The rapid pace of innovation

has required software development to scrap old methods (Waterfall) in favor of DevOps

and other Agile methods, ushering in a new set of tools. Widespread adoption of cloud

computing and the SaaS delivery model has increased velocity further, giving rise to

release automation and other markets in support of Internet delivery. The explosion of

mobile and enterprise BYOD has changed software development from desktop-focused to

mobile thick-clients.

These trends, and others, have given rise to both emerging leaders and a wave of

acquisition activity by the incumbent hardware and software vendors within the software

development tools market. Once a sleepy market, DevTools is exciting again! In this

report, we examine some of these trends, as well as some of the emerging companies at

the forefront of innovation.

1

Software Development Tools Market Trends & Landscape

Summary and Introduction

“Today's large John Deere tractors have

more lines of software code than early

space shuttles.”

- Samuel Allen (CEO, Deere & Company)

“Software is like entropy. It is difficult to

grasp, weighs nothing and obeys the

second law of thermodynamics; i.e., it

always increases.”

- Norman Augustine (Under Secretary of the Army)


Market Trends and Implications

2

As much a cultural shift as a development methodology, DevOps changes the way development and

operations teams interact with one another, focusing on improving the effectiveness through

collaboration and a shared Agile mentality

The embrace of DevOps not only requires use of Agile development technologies, including version-

control repositories, highly-automated test suites and project management / ALM, but also has led

to a new class of tooling to support Application Release Automation (ElectricCloud, XebiaLabs) and

Application Performance Management (AppDynamics, New Relic) purpose-built for the high-velocity

development required in cloud and SaaS environments

Though DevOps requires more than ARA, vendors in that space have been the most obvious

beneficiaries of the trend toward DevOps, driving acquisition activity from systems management

vendors (BMC/Phurnace, StreamStep, Varalogix; CA/Nolio; IBM/UrbanCode)

DevOps Evolves from Cloud to Enterprise

Implications

Migration to Agile

Business agility and process improvement have driven a secular shift to lean and Agile software

development methodologies – the multi-month (to year-long or more) development cycles spawned

by Waterfall development no longer work in the fast-evolving software landscape, particularly in

cloud/SaaS, mobile and social

The change in methodology has driven a market for the new tools and processes needed to support

Agile within the enterprise, and a period of change and innovation as “heritage” framework vendors

(HP/Mercury, IBM/Rational, Microsoft, Micro Focus, etc.) are less able keep pace with the

emergence of “next-gen” technologies – this has enabled a generation of focused vendors to

emerge and take market share in ALM (Atlassian, Rally, VersionOne), QA/Test Automation

(SauceLabs, SmartBear, Tricentis) and other key sub-segments

Application development has continued to evolve from the traditional approach of “building

applications ‘from scratch’ to assembling, composing, integrating and developing solutions through

the reuse of existing software” (Gartner, 2013)

Reuse of services / resources has spawned a number of enabling technologies, notably in the

areas of application modernization, composite development and “mashups” which enable the

combination of existing resources (often legacy) into new applications (IBM, Magic, Rocket/Seagull,

WS02), and the related concepts of SOA (Service-Oriented Architecture) and API (Application

Programming Interfaces), the former an established architecture paradigm where discrete pieces of

software provide functionality as “services” to larger applications which must then be managed and

governed (a 10-year-old market fully consolidated by IBM, Oracle, Software AG and TIBCO) – this is

experiencing a resurgence under the banner of API Management (CA/Layer 7, Intel/Mashery,

MuleSoft), which is typically used in the cloud to manage APIs for mobile and web applications

Reuse of Existing Software & Services

Key Trends

Adobe (Nitobi) Appcelerator Apple AT&T BlackBerry DSI DudaMobile Electric Cloud

Embarcadero Formotus Fuse Powered

(Corona Labs) Gizmox Good Technology Google HP (Anywhere,

Palm) IBM (Worklight) InfoGin Infosys Infragistics July Systems Kony Magic Software

Magnet Systems mBlox Microsoft Mobinex Moofwd MoSync Motorola

(Rhomobile)

Movidilo mPortal M Project Netbiscuits Netsize Nokia Oracle Pegasystems

(Antenna) Rocket Software Salesforce SAP (Sybase, Syclo) Sencha Service2 Media Software AG

(Metismo)

Spring Trigger.IO Usablenet Verivo Webalo Xamarin

3

Embarcadero

(ERwin)

IBM (Systems

Architect)

Micro Focus

(Borland)

Oracle

(WebGain)

Rogue Wave

(Klocwork)

Sparx Systems

SAP (Sybase)

Alpha Software

(Alpha Five)

Atego

CA (Plex)

Embarcadero

IBM (Rational)

Infragistics

Interactive

Objects

Mendix

Mia-Software

Microsoft

MID

MphasiS (Wyde)

Oracle

OutSystems

Progress

(Rollbase)

Rocket Software

SAP (Sybase)

TigerLogic

XVT

Yes Software

(CodeCharge)

CA (ITKO, Wily)

IBM

Micro Focus

(Borland)

Microsoft

Oracle

Parasoft

SAP

Software AG

TIBCO

Weblayers

WS02

Requirements Definition & Management

Accompa

Blueprint

codeBeamer

Digité (CloudSpec)

Gatherspace

HP (Quality Center)

IBM (Rational)

iRise

Jama

Micro Focus (Borland Caliber)

Microsoft (Visual Studio)

PTC (MKS Integrity)

ReQtest

Seapine

TechExcel

Versata (Ravenflow)

Architecture & Design Tools


Competitive Landscape

Development Environments

Cloud9 IDE

CloudBees

CodeRun Studio

Compuware

(OptimalJ, Uniface)

Ebase Xi

Genuitec

IBM (WebSphere)

Kodingen

Micro Focus

(Borland, COBOL)

Microsoft (Visual

Studio)

Progress

(OpenEdge)

RhodeCode

Rogue Wave

Xojo

Affinic

Allinea Software

Apple (Xcode)

Araxis

Digia Qt

FusionDebug

Hex-rays

IBM (Rational)

LINQPad

Microsoft

Oracle

Rogue Wave

(TotalView)

SlickEdit

SmartBear

Sublime Text

Telerik (Fiddler)

ZeroTurnaround

Atlassian

Bugzilla

Collabnet

(Subversion)

Fog Creek

GitHub

GitLab

IBM (ClearCase)

Lighthouse

Perforce

ReQtest

Rogue Wave

(Klocwork)

Serena (PVCS)

Synopsys (Coverity)

TechExcel

Unfuddle

BlackDuck

Rogue Wave

(OpenLogic)

Protecode

Sonatype

Synopsys

(Coverity)

Development

Source Editors & Debuggers Version Control & Defect Tracking

Mobile Development Platforms [see also Shea & Company’s Enterprise Mobility Market Taxonomy]

QA/Test Management

Digité

Embarcadero

HP (Quality Center)

IBM (Rational)

Jama

Meliora

Micro Focus (Borland)

PTC (MKS Integrity)

QMetry

ReQtest

Seapine (TestTrack)

TechExcel

Test Collab

Tricentis

Automation Anywhere

Eiffel

HP (QuickTest)

IBM (Rational Robot)

McCabe


Automic Software

BMC Software

CA Technologies (Nolio)

Electric Cloud

HP

IBM (Urban Code)

Microsoft

Oracle

Parasoft

Progress (Telerik)

QASymphony

Sauce Labs

Chef

CSC (ServiceMesh)

Microsoft

MidVision

PuppetLabs

Seapine

SmartBear

SmarteSoft

Tricentis

SaltStack

Serena

UC4

VMware

XebiaLabs

BlazeMeter

BrowserStack

CloudShare

CrossBrowserTesting

HP

Keynote

(DeviceAnywhere)

LoadStorm

Microsoft

Neotys

Perfecto Mobile

QFS

Qmetry

SeleniumHQ

Skytap

SOASTA

Verisium

WebPerformance

Zephyr

QA, Testing & Release Automation

ASQ (Test Automation) Cloud & Web Testing

Application Lifecycle Management

Atlassian

Basecamp

CA (Clarity)

Clarizen

codeBeamer

Compuware (Changepoint)

Elementool

EMC (Pivotal Labs)

Genius Inside

HP (PPM Center)

IBM (Rational)

Jama

Kovair

Micro Focus (AccuRev)

Microsoft (TFS)

PTC (MKS Integrity)

Redmine

Rocket Software

SAP (RPM)

SemanticSpace Technologies (PPM Studio)

Serena

Siemens (EDS PLM Teamcenter)

Zoho Projects

AgileCraft

Atlassian

Axosoft

CloudShare

CollabNet (TeamForge)

Digité

Electric Cloud

Hansoft

HP (Agile Manager)

MaestroDev


OpenMake

Oracle (Agile)

Parasoft (Concerto)

Planbox

Rally

Scrumy

TechExcel (DevSuite)

VersionOne

ALM & Software-Focused PPM Tools

Enterprise Agile (incl. DevOps, Lean, Hybrid)

Atlassian

Cloud9 IDE

CollabNet

Fog Creek

GitHub

Jama

Perforce

Unfuddle

Open Source

Management

Application Release Automation

Developer Collaboration Tools

Rapid Application Development SOA Development ToolsEnterprise Architecture

4

Requirements Definition & Management

Architecture & Design Tools


Market Leaders

Development Environments

Development

Source Editors & Debuggers Version Control & Defect Tracking

Mobile Development Platforms [see also Shea & Company’s Enterprise Mobility Market Taxonomy]

QA/Test Management

QA, Testing & Release Automation

ASQ (Test Automation) Cloud & Web Testing

Open Source

Management


Rapid Application Development SOA Development ToolsEnterprise Architecture

Developer Collaboration Tools

Application Lifecycle Management

ALM & Software-Focused PPM Tools

Enterprise Agile (incl. DevOps, Lean, Hybrid)

5

Agile


Disruptive Technologies in Dev Tools: Continuous Delivery


Automated & Rapid Test/QADevOps

Developer Collaboration

Leading Vendors in Continuous Delivery Enabling Technologies


Notable Acquisitions by Incumbent Vendors

6

ALM

Requirements

Definition &

Management

Architecture &

Design Tools

Development

Quality

Assurance &

Testing

Release

Automation

Development

QA / Test

Partnerpedia, Phurnace, StreamStep, Varalogix

ITKO, Layer 7 Technologies, Nolio, Rally Software

Fortify, Mercury, SPI Dynamics

BuildForge, Gluecode, Green Hat, Ounce Labs, Rational,

Telelogic, UrbanCode, Worklight

Borland, Compuware (App Testing assets), Merant

AVIcode, InCycle, Teamprise

Atego, Axeda, CoCreate, MKS, ThingWorx

Aldon, IBM’s U2 assets, SmartDB

Coghead, GUI Machine, Sybase, Top Tier

Integrated Chipware (RTM assets), Projity, TeamShare;

recap by HGGC

Bitbucket, Cenqua, Pyxis, SourceTree, Systems Bliss

6th Sense Analytics, Agile Advantage, AgileZen, Blue Hole,

Flowdock


Subsector Focus: Application Lifecycle Management

7

Application Lifecycle Management Trends

Accelerating Demand for Business Agility

The penetration and significance of software within the enterprise has

skyrocketed over the last decade; beyond traditional technology markets,

software is now a key competitive differentiator across industries, including

hardware/devices, financial services, manufacturing, healthcare and

defense – to some extent, all companies are software developers today

With that backdrop, the demand for business agility and fast responses to

changing market trends and demands has only accelerated, particularly in

the fast-evolving context of cloud, mobile and social environments – the

traditional 18-24 month development cycles no longer work

Growing Industry Recognition that Waterfall Methods Don’t Work

Traditional “Waterfall” based software development methods (including

Rational’s Unified Process), focused on a top-down, step-method approach

with explicit handoffs from strategy to planning to execution have often

wasted time and money; the Standish Group found that only 14% of

Waterfall-method projects were “successful” versus 42% for Agile projects,

and with iteration times measured in weeks instead of years

This has driven a secular shift from Waterfall and RUP to Agile development

methodologies (Agile, DevOps, Kanban, Lean, among many others); as one

proxy, Shea & Company believes the Agile ALM market is growing at 25%-

30% as compared to 3.9% for ALM overall (Gartner, 2013)

ALM Market: A Period of Redefinition and Innovation

The emergence of Agile methodologies has required a fundamental change

to the traditional toolsets, and allowed the rise of a new generation of Agile-

focused vendors in segments, including ALM, ASQ and SCM, which in the

aggregate represent more than $6bn in spend (IDC, 2014)

Constant innovation in methodologies (DevOps, Kanban), use cases (mobile,

social, SaaS), delivery (on-premise, hybrid, cloud) and development

organization complexity (larger projects, distributed teams) has shifted

competitive advantage to more nimble, upstart vendors; the easy

deployment of these tools has driven an “up through the floorboards” land-

and-expand displacement of incumbents

Heritage Vendors M&A Activity

“Next-Gen” ALM

Phurnace, StreamStep, Varalogix

Nolio

ServiceMesh

Rational, UrbanCode

InCycle

UrbanCode (source code assets)

Systems Bliss

Ventum Consulting


Subsector Focus: Application Release Automation

8

Application Release Automation Trends Heritage Vendors M&A Activity

Emergence of ARA

Software is the engine that powers all industries, requiring organizations to

excel at software delivery; however, creating and delivering software doesn’t

seem to be enough anymore

The ARA market has emerged as a formal set of solutions to address the

specific requirements of enterprises for deploying Agile-based or web-based

applications; ARA is being driven by companies’ need to: i) push releases

quickly and easily across all phases of the application lifecycle; ii) replace

manual scripting with automation; and iii) establish and encourage

collaboration between developers and admins

Market Maturity Driving M&A and New Entrants

While new vendors continue to emerge, the market has reached a level of

maturity where large vendors are recognizing the strategic nature and value

of ARA tools; heritage ALM vendors are beginning to add functionality in ARA

either organically (e.g., Electric Cloud) or through acquisitions of companies

or code

Meaningful adjacent markets (application development and life cycle

management, build/develop, infrastructure configuration and cloud

management) will draw in new entrants and increase competitive pressures;

this will bring innovative, novel approaches to core ARA functionality and

introduce new capabilities to address evolving ARA and continuous delivery

requirements

Continued Solution Integration and Feature Development

Although the majority of ARA tools are currently being used in a targeted

fashion to address the application release process with a distinct set of

actions, integration into an organization’s larger DevOps, IT service support

management and other IT operations management tools and process

strategies will likely be this space’s next step

ARA developers will also broaden their view of continuous delivery, which

will extend across all environments, including databases, middleware and

application servers

“Next-Gen” ARA


Subsector Focus: Mobile Application Development

“Consumerization” of Enterprise Information Technology

The consumerization of IT presents enterprises with a new set of challenges

– IT can no longer take a one-size-fits-all approach to managing mobile

devices, applications and security

Mobile application development is being driven by customer demands and

business needs, but balanced against security concerns: applications and

data that reside locally on the endpoint present additional security risks, so

the benefit gained must be carefully weighed against the potential risks; the

less resident data, the less the need for management and control

Bring Your Own Device (BYOD)

BYOD creates unique challenges not present when corporations provided

devices to employees – IT has lost control over the endpoint because they

no longer own the endpoint

Increasing heterogeneity in the number of devices and platforms that IT is

being asked to support and secure adds a greater degree of complexity to

existing IT infrastructure

Personal and business information is comingled on one device, creating

issues when an employee is terminated (company would prefer to wipe the

device, but employee will resist as it contains personal data) or a corporate

lawsuit arises (company may be compelled to provide all of the information

on a device, but employee will resist as it contains personal data)

Hardware Vendor Migration from “Compute” to “Solution” Sale

As a result of growth of mobile devices in the enterprise, there is strong

demand for both software to manage these devices as well as mobile

applications to run on these devices

Large technology vendors will look to M&A as a means to enter this growth

sector – 2012 through 2014 saw significant consolidation among mobile

application development providers, as vendors look to provide a platform for

building mobile applications and mobilize their own solutions

We expect M&A in the mobile space to continue to accelerate into 2015 as

established vendors look to extend their existing application development,

endpoint management and security solutions to mobile devices

The mobility sector remains fragmented with a large number of small

independent vendors – the space is ripe for consolidation

9

Mobile Application Development & Management Trends

Partnerpedia

Blue Hold Software (ScrumAway application)

Fiberlink, Worklight, Xtify

appMobi (developer tools)

Wavelink

Antenna Software, Volantis Systems

Syclo

metaquark, Metismo

Usergrid

Singly, Cocoafish

Parse

AppCentral, BoxTone, CloudSync, Three Laws Mobility

Sky Technologies

Virtual, Zenprise

Bitzer Mobile

AirWatch, Motorola (MSP business)

Heritage Vendors M&A Activity

“Next-Gen” Mobile App Development

Other Market News in Mobility


M&A Activity within Software Development Tools

Disclosed Value Transactions ($ million)

As business agility demands pressure software developers to deliver

custom, high-quality products in shorter periods of time, IT

organizations will continue to migrate to Agile and DevOps

methodologies which will drive a wave of consolidation

Consolidation within Release Automation (a DevOps prerequisite) is

already well underway which we expect to continue as the market

evolves and DevOps becomes even more mainstream; additionally, we

expect the larger IT management software vendors to make strategic

acquisitions in other Agile/DevOps driven market segments, including

ALM, APM and Automated Testing, among others

Driven by cloud and mobile initiatives, API Management should also

see continued consolidation

M&A Volume by Year

Source: Shea & Company and 451 Research

[a] Source: The 451 Group

Other data from publicly available sources

10

10

14 13

18

21

29

21

32

47

44 43

0

5

10

15

20

25

30

35

40

45

50

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Announced Target Acquirer

Enterprise

Value

EV /

CY Rev

11/30/15 Corona Labs (assets) Perk.com $2 -

11/19/15 Bebop Technologies Google $380 -

06/29/15 BNOTIONS Symbility Solutions $3 -

06/08/15 Verivo Software (assets) Appery $2 [a] -

05/27/15 Rally Software CA Technologies $480 5.5x

04/14/15 Verold Box $5 -

10/22/14 Telerik AD Progress Software $263 4.4x

10/07/14 Rounded Labs MoPowered Group plc $0 -

09/18/14 FeedHenry Red Hat $82 -

07/23/14 Axeda PTC $170 -

07/01/14 EIBS Ideagen $2 -

06/16/14 Atego PTC $50 2.5x

06/09/14 Modulus Progress Software $13 6.3x

03/13/14 Appixia Wix.com $1 -

02/19/14 Coverity Synopsys $350 -

01/24/14 Copper.io LX Ventures $1 -

01/08/14 Compuware (Changepoint units) Marlin Equity Partners $160 -

01/08/14 Propalms Vanity Events Holding $20 -

01/07/14 Little Eye Labs Facebook $13 [a] -

12/30/13 ThingWorx PTC $121 -

11/25/13 Robot Fruit StreamTrack $0 -

10/30/13 ServiceMesh Computer Sciences $227 5.7x [a]

10/11/13 Antenna Software Pegasystems $28 -

08/02/13 Tall Maple Systems FireEye $1 -

06/24/13 Keynote Systems Thoma Bravo $395 3.2x

05/06/13 Enstratius Dell $70 [a] nm

04/22/13 Layer 7 Technologies CA Technologies $155 -

04/17/13 Mashery Intel $180 [a] 18.0x [a]

03/24/13 Nolio CA Technologies $42 14.0x [a]

02/20/13 Active Endpoints Informatica $10 [a] 1.3x [a]

02/13/13 Flowdock Rally Software $4 -

01/28/13 Crashlytics Twitter $38 -

10/10/12 Metaskil Group Limited Quindell Portfolio plc $8 1.6x

08/09/12 Qt Development Frameworks Digia Oyj $5 -

04/20/12 MU Dynamics Spirent Communications $40 -

10/31/11 BluePhoenix Solutions (assets) Magic Software $17 -

10/31/11 SimpleGeo Urban Airship $4 -

10/10/11 Mobile Complete (assets) Keynote Systems $75 3.8x

10/10/11 Rhomobile Motorola Solutions $25 [a] -

08/25/11 CloudSwitch Verizon $80 [a] nm [a]

07/12/11 Cloud.com Citrix Systems $159 14.4x [a]

05/31/11 Metismo Software AG $15 [a] 15.0x [a]

05/20/11 Atalasoft Kofax $8 2.1x

12/08/10 Heroku Salesforce.com $249 -

12/02/10 The Astonishing Tribe Research In Motion $125 [a] 5.0x [a]

09/16/10 Morfik Altium $3 -

08/17/10 Fortify Software HP $275 [a] 4.6x [a]

05/12/10 Sybase SAP $5,800 4.7x

($ millions)

Latest Round – Date 4/8/14 6/19/14 8/5/15 11/6/15 11/11/15 02/02/16

Latest Round – Size $150.0 $40.0 $251.0 $113.0 $35.0 $55.0

Post-Money Valuation $3,300.0 $652.1 $2,000.0 $1,100.0 n/a n/a

Amount Raised to Date $60.0 $86.0 $350.5 $181.7 $83.6 $61.9


Recent Capital Raises of Software Development Tools Companies

Source: PitchBook and other publicly available sources

11

Notable Past DevTools Funding Activity

Close Date Company Participating Investor(s) Description Amount

02/02/16 OutSystems North Bridge Rapid application development tools $55

11/17/15 Blueprint Software Centana Growth Partners Agile development tools, integration and reporting $23

11/11/15 Perfecto Mobile Carmel Ventures, FTV, Globespan Capital Partners, TCV, Vertex Automatic mobile testing $35

11/06/15 Docker AME Cloud, Benchmark, Coatue, Greylock, Ignition, Insight, Lightspeed, Lowercase Code building, scaling, deployment and load balancing $113

09/09/15 Chef Amplify, Battery, Citi Ventures, DFJ, HP Ventures, Ignition, Mellenium, Scale, Webb Cloud infrastucture automation $40

09/09/15 Apperian Bantam, Bessemer, CommonAngels, FirstFloor, Intel, KP, LaunchCap, North Bridge Mobile application wrapping, distribution, integration and testing $12

08/05/15 GitHub Andreessen Horowitz, IVP, Sequoia, SV Angel, Thrive Software development collaboration and distributed version control $251

07/21/15 Apprenda Ignition, NEA, Primary Venture Partners, Safeguard Scientifics Application management, infrastrucure and development $24

07/07/15 Bugsnag Benchmark Capital, Matrix Partners Real-time website crash and bug detection $7

05/19/15 Meteor Andreessen Horowitz, Matrix, Data Collective, Trinity, Webb Investment, Y Comb Web open source and closed source application development $20

03/23/15 Coding IDG Capital Partners, Lightspeed Developer collaboration and project management tools $10

02/17/15 Apptimize Andreessen Horowitz, Costanoa, Google Ventures, Maverick, Merus, Y Comb Native mobile application optimization and testing $4

02/05/15 Sauce Labs Salesforce.com, Toba Capital, Triage Ventures Automated application functional and unit testing $15

01/28/15 UserTesting Accel, Clearstone, D. E. Shaw, Inspiration Ventures, Kern Whelan, OpenView Crowdsourced user experience testing tools $46

01/27/15 CloudBees Blue Cloud Ventures, Lightspeed, Matrix Partners, Verizon Ventures Java-based enterprise Jenkins tools $23

12/18/14 Skytap Ignition, Insight Venture Partners, Madrona, OpenView, WRF Capital Application development, deployment and testing $35

11/05/14 Shippable Divergent Ventures Partners, Founder's Co-Op, Madrona, Vulcan Capital Application building, testing and deployment $8

10/28/14 Rhodecode DFJ Esprit, Earlybird Venture Capital Code production collaboration $3

10/02/14 Light Table Andreessen Horowitz Integrated development, debugging and documentation $2

09/26/14 AnyPresence Citrix Systems, Clark Enterprises, Grotech Ventures, Kinetic Ventures Cloud-based mobile app development $6

09/16/14 Semmle Accel Semmle code development $8

08/25/14 Appcelerator EDB, Mayfield, Relay Ventures, Rembrandt, Sierra, Storm, TransLink, Union Grove Mobile app and web development $22

08/21/14 Xamarin CRV, FLOODGATE, Ignition, Insight, Lead Edge Capital Cross platform mobile app development $54

08/08/14 ScriptRock ATP Innovations, August, Square Peg Ventures, Valar Ventures Complex systems configuration testing $9

06/19/14 Puppet Labs Cisco, Google Ventures, Kleiner Perkins, Triangle Peak, True Ventures, VMware IT automation and configuration management $40

06/17/14 Kony Delta-v Capital, Georgian Partners, Hamilton Lane, Insight, SoftBank, Telstra Mobile app development platform $50

Theme: Application release automation

Electric Cloud delivers solutions that automate and accelerate

software build-test-deploy processes. The company's products help

development organizations to speed time-to-market, boost

developer productivity and improve software quality while leveraging

the operational efficiencies provided by virtualized/cloud

infrastructures.

Employees: 150

Key Executive(s): Stevie Brodie (CEO)

Investor(s): Mayfield Fund, Rembrandt Venture Partners, RRE

Ventures, Siemens Venture Capital, USVP

Theme: Developer Collaboration Tools

CollabNet provides a web-based software collaboration platform. The

company offers a control solution that supports remote development

sites from a central repository accessible over the Web, a software

configuration management solution for centrally managing source

code and code changes and a Web-based environment for

distributed collaborative development.

Employees: 303

Key Executive(s): Flint Brenton (CEO)

Investor(s): Industry Ventures, Vector Capital

Theme: IT infrastructure automation and DevOps

Chef provides cloud infrastructure automation solutions. Its open

source systems integration framework aims to help software

developers and engineers manage both on-premises and cloud

server provisioning by writing code. Compared with its competitors,

it uses a developer-oriented language to build the code or rules.

Employees: 175

Key Executive(s): Barry Crist (CEO)

Investor(s): Amplify Partners, Battery Ventures, Citi Ventures, DFJ,

Ignition Partners, Scale Venture Partners, Webb Investment Network

Theme: Bug tracking and content collaboration

Atlassian provides software development and collaboration tools to

help teams conceive, plan and launch products. The company’s Jira

product is a project management and issue tracking tool that helps

product teams manage issues, bugs, tasks and deadlines.

Confluence is a content collaboration tool enabling teams to create,

share and discuss documents and media. In 2014 the company

completed a $150m secondary fundraise at a $3.3bn valuation.

Employees: 980

Key Executive(s): Mike Cannon-Brookes (Co-CEO), Scott Farquhar (Co-

CEO), Jay Simons (President)

Investor(s): Accel Partners, Dragoneer Investment, T. Rowe Price

12


Selected Companies for Discussion

Theme: Database and software lifecycle development

Embarcadero provides strategic data management solutions that

companies use to design, develop and manage applications and

database systems across multiple platforms. The company’s

database tools support the entire database development lifecycle

and its software development tools enable developers to create true

native apps and get apps to market faster.

Employees: 455

Key Executive(s): Wayne Williams (CEO)

Investor(s): Thoma Bravo

Theme: Application release automation

Electric Cloud delivers solutions that automate and accelerate

software build-test-deploy processes. The company's products help

development organizations to speed time-to-market, boost

developer productivity and improve software quality while leveraging

the operational efficiencies provided by virtualized/cloud

infrastructures.

Employees: 150

Key Executive(s): Stevie Brodie (CEO)

Investor(s): Mayfield Fund, Rembrandt Venture Partners, RRE

Ventures, Siemens Venture Capital, USVP

Theme: Requirement planning and test management

Jama provides a product delivery platform that helps companies

bring complex products to market. The company’s collaborative

solution integrates requirements and test management. Distributed

teams can join real-time discussions, propose edits, flag issues and

electronically sign-off on requirements. All documents reside in one

centralized place and documents and product details can be reused

on future products.

Employees: 125

Key Executive(s): Eric Winquist (CEO)

Investor(s): Bend Venture Conference, Madrona Venture Group,

Oregon Angel Fund, Trinity Ventures

Theme: Open-source code collaboration

GitHub provides a social network platform for programmers to share

code with friends, co-workers and complete strangers, making it

easier for individuals and teams to write better code, faster. The

solution is built for software development projects using the Git

revision control system and offers paid plans for private repositories

and free accounts for open source projects.

Employees: 225

Key Executive(s): Chris Wanstrath (CEO), Tom Preston-Werner

(President)

Investor(s): Andreessen Horowitz, SV Angel

13


Selected Companies for Discussion continued

Theme: Developer Collaboration Tools

CollabNet provides a web-based software collaboration platform. The

company offers a control solution that supports remote development

sites from a central repository accessible over the Web, a software

configuration management solution for centrally managing source

code and code changes and a Web-based environment for

distributed collaborative development.

Employees: 303

Key Executive(s): Bill Portelli (CEO)

Investor(s): Vector Capital

Theme: Mobile backend-as-a-service

Kinvey is a provider of backend as a service platform for mobile and

tablet applications. The company develops services for developers

to easily setup and operate a cloud backend for mobile apps. With

the solution, developers can model their cloud backend needs and

the solution auto-generates the APIs and libraries they would need to

access their data from any platform. Developers can then grab their

APIs and libraries, put it in their app code and be ready to go.

Employees: 30

Key Executive(s): Sravish Sridhar (CEO)

Investor(s): Atlas Venture, Avalon Ventures, NTT DOCOMO Ventures,

Verizon Ventures

Theme: Database and software lifecycle development

Embarcadero provides strategic data management solutions that

companies use to design, develop and manage applications and

database systems across multiple platforms. The company’s

database tools support the entire database development lifecycle

and its software development tools enable developers to create true

native apps and get apps to market faster.

Employees: 455

Key Executive(s): Randy Jacops (CEO)

Investor(s): TA Associates

*Acquired by Idera on 10/07/15

Theme: Open-source code collaboration

GitHub provides a social network platform for programmers to share

code with friends, co-workers and complete strangers, making it

easier for individuals and teams to write better code, faster. The

solution is built for software development projects using the Git

revision control system and offers paid plans for private repositories

and free accounts for open source projects.

Employees: 225

Key Executive(s): Chris Wanstrath (CEO), Tom Preston-Werner

(President)

Investor(s): Andreessen Horowitz, SV Angel

Theme: Requirement planning and test management

Jama provides a product delivery platform that helps companies

bring complex products to market. The company’s collaborative

solution integrates requirements and test management. Distributed

teams can join real-time discussions, propose edits, flag issues and

electronically sign-off on requirements. All documents reside in one

centralized place and documents and product details can be reused

on future products.

Employees: 125

Key Executive(s): Eric Winquist (CEO)

Investor(s): Bend Venture Conference, Madrona Venture Group,

Oregon Angel Fund, Trinity Ventures

Theme: Mobile backend-as-a-service

Kinvey is a provider of backend as a service platform for mobile and

tablet applications. The company develops services for developers

to easily setup and operate a cloud backend for mobile apps. With

the solution, developers can model their cloud backend needs and

the solution auto-generates the APIs and libraries they would need to

access their data from any platform. Developers can then grab their

APIs and libraries, put it in their app code and be ready to go.

Employees: 30

Key Executive(s): Sravish Sridhar (CEO)

Investor(s): Atlas Venture, Avalon Ventures, NTT DOCOMO Ventures,

Verizon Ventures

Theme: Mobile and website testing and automation

Perfecto provides cloud-based testing, automation and monitoring

solutions for mobile applications and websites. The company’s

MobileCloud Platform enables developers and testers to access and

control a range of the latest devices connected to live networks

around the world. It also provides a dedicated Private Handset

Cloud, which is an environment where users can access pre-and

post-launch handsets for development, testing and monitoring.

Employees: 145

Key Executive(s): Eran Yaniv (CEO)

Investor(s): Carmel Ventures, FTV Capital, Globespan Capital Partners,

Vertex Venture Capital, Vodafone Ventures, Waisbein Fund

Theme: Source code version control and change management

Perforce provides a versatile software development platform for

implementing fast and scalable continuous delivery. The Perforce

product is applicable in a variety of industries and allow for hybrid

version control for both distributed and centralized workflows,

collaboration for both technical and non-technical staff, change

history tracking and enterprise Git management for more complete

Git management and social code review.

Employees: 230

Key Executive(s): Christopher Seiwald (CEO)

Investor(s): Bootstrapped

Theme: Developer tools and OSS management

Rogue Wave provides software development tools for mission-critical

applications. The company’s portfolio of complementary, cross-

platform tools helps developers quickly write, test and deploy

software for complex applications. With Rogue Wave, customers

improve software quality and ensure code integrity, while shortening

development cycle times.

Employees: 400

Key Executive(s): Brian Pierce (CEO)

Investor(s): Audax Group

14



Theme: IT infrastructure lifecycle management

Puppet Labs provides IT automation software. The company's

products, Puppet and Puppet Enterprise, allow companies to

automate configuration management and infrastructure, cut costs

and help organizations better handle infrastructure management at

scale. Its solutions use a simple declarative language that system

administrators find easy to use.

Employees: 310

Key Executive(s): Luke Kanies (CEO)

Investor(s): Cisco Investments, Google Ventures, Kleiner Perkins,

Radar Partners, Triangle Peak Partners, True Ventures, VMware

Theme: Code review and testing

SmartBear Software provides a suite of tools for developers, testers,

and operations professionals for all stages of software development,

from software development, to QA & testing, to web & app

monitoring. The firm currently provides code review, automated

testing, performance/load testing, API testing, performance profiling

and development management tools. SmartBear Software’s tools

are highly flexible, and can be used for desktop, mobile, Web and

cloud-based applications.

Employees: 210

Key Executive(s): Doug McNary (CEO)

Investor(s): Insight Venture Partners, Toba Capital

Theme: Application Lifecycle Management

VersionOne provides Agile application lifecycle management

software designed to guide and manage the entire development

chain, from idea to delivery. The company’s platform was purpose-

built for Agile projects, and serves as an “all-in-one” management

tool for projects and teams of any size. VersionOne is available both

on premise and as a cloud service, and is pre-built with integrations

to most commonly-used development tools to create a single,

synchronized development environment.

Employees: 120

Key Executive(s): Robert Holler (CEO)

Investor(s): LLR Partners, OpenView Venture Partners

Theme: Java development lifecycle productivity

ZeroTurnaround provides productivity enhancing solutions for the

Java community. The company’s product for developers enables

them to view code changes without redeploying the application

server, while operations teams can run a software to eliminate

server downtime during live-app updates. This helps eliminate the

build/test/redeploy phases of the development cycle and allows for

continuous delivery.

Employees: 175

Key Executive(s): Jevgeni Kabanov (CEO)

Investor(s): Bain Capital Ventures, Western Technology Investment

15



Theme: Cloud-based QA / Test

Skytap provides pre-built production-like environments on AWS that

enable dev/test teams to test more easily and more frequently, with

on-demand fast provisioning of complex computing environments

and secure collaboration and sharing. The Skytap Cloud product

was designed for the testing of complex applications – existing

virtualized apps can be imported into the platform or can be built

within the platform itself.

Employees: 100

Key Executive(s): Thor Culverhouse (CEO & Founder)

Investor(s): Bezos Expeditions, Ignition, Madrona Venture Group,

OpenView Venture Partners, Washington Research Foundation

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