Shea & Company
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)
Software Development Tools Market Trends & Landscape
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
Software Development Tools Market Trends & Landscape
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
Micro Focus (Borland)
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
Micro Focus (Borland)
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
Software Development Tools Market Trends & Landscape
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) Mobile, Cloud & Web Testing
Open Source
Management
Application Release Automation
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
Software Development Tools Market Trends & Landscape
Disruptive Technologies in Dev Tools: Continuous Delivery
Application Release Automation
Automated & Rapid Test/QADevOps
Developer Collaboration
Leading Vendors in Continuous Delivery Enabling Technologies
Software Development Tools Market Trends & Landscape
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
Software Development Tools Market Trends & Landscape
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
Software Development Tools Market Trends & Landscape
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
Software Development Tools Market Trends & Landscape
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
Software Development Tools Market Trends & Landscape
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
Software Development Tools Market Trends & Landscape
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
Software Development Tools Market Trends & Landscape
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
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Software Development Tools Market Trends & Landscape
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
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Software Development Tools Market Trends & Landscape
Selected Companies for Discussion continued
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
Software Development Tools Market Trends & Landscape
Selected Companies for Discussion continued
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
Copyright © 2016 Shea & Company, LLC
Advisory Services and Selected Transactions
Mergers & Acquisitions
Buy-side and sell-side M&A advisory
Divestitures
Restructuring
Private Placements & Capital Raising
Late-stage venture and growth equity
Recapitalizations
IPO advisory
Corporate Strategy
Corporate development advisory
Fairness opinions
Selected TransactionsShea & Company has advised on billions of dollars of software M&A and capital raise transactions
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financial advisor to Lacoon
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financial advisor to Bronto
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financial advisor to Freshbooks
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financial advisor to Bomgar Corporation
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Shea & Company served as the exclusive
financial advisor to HP
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financial advisor to LastPass
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financial advisor to Coveo
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financial advisor to MRI Software
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financial advisor to Sovos Compliance
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Shea & Company Firm Overview
Introduction to Shea & Company
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