Spotlight

Report:

Magic Quadrant for Application Performance Monitoring and Observability

How does Gartner define the Application Performance Monitoring and Observability market in 2023?

Gartner defines the application performance monitoring (APM) and observability market as software that enables the observation and analysis of application health, performance and user experience. The targeted roles are IT operations, site reliability engineers, cloud and platform teams, application developers, and product owners. These solutions may be offered for self-hosted deployment, as a vendor-managed hosted environment, or via SaaS. Gartner's view is focused on transformational technologies or approaches delivering on the future needs of end users, not the market as it is today.

Key Facts for Magic Quadrant for Application Performance Monitoring and Observability in 2023

Strategic Planning Assumptions

No strategic planning assumptions provided.

How was the Application Performance Monitoring and Observability market evolved in 2023?

What product features are required to be included in this year's evaluation?

What are the common features of top products in the Application Performance Monitoring and Observability space?

Scope Exclusions

Inclusion Criteria

Vendors must, among other requirements:

Ability to Execute — Relative Weighting

Completeness of Vision — Relative Weighting

FAQs

Q: What does this research cover?

A: This research covers the APM and observability market, defined as software that enables the observation and analysis of application health, performance and user experience. It evaluates 20 vendors across capabilities including transaction behavior observation, automated discovery and mapping, monitoring via browser/mobile/API, performance problem identification, integration with automation tools, business activity monitoring, interactive exploration of telemetry types, and application security functionality. The research assesses vendors on their ability to execute and completeness of vision.

Q: Who should use this research?

A: This research should be used by IT operations leaders, site reliability engineers, cloud and platform teams, application developers, and product owners who are responsible for monitoring and ensuring application health and performance. Organizations evaluating APM and observability solutions can use this research to understand vendor capabilities, market positioning, strengths and cautions of different providers, and to overcome choice paralysis when selecting solutions. It is particularly valuable for organizations undergoing digital transformation, adopting cloud-native architectures, or seeking to consolidate monitoring tools.

Q: What are the mandatory features of vendors included in this market?

A: To qualify for inclusion, vendors must demonstrate the capability to observe an application's complete transactional behavior through proprietary agent technology and/or distributed tracing. They must support automated data collection from at least three modern application frameworks (such as Java, .NET, PHP, Ruby, Node.js, Python, Go, or others). Additionally, vendors must demonstrate at least four of seven core technical capabilities: automated discovery and mapping of applications and infrastructure, monitoring across browser/mobile/API channels, performance problem identification with business impact analysis, native integration with cloud providers and automation tools, business activity and user journey monitoring, interactive multi-telemetry exploration for detecting unknown issues, and application security functionality including vulnerability identification and exploit blocking.

Q: What are some reasons for not being included in this report?

A:

  • Insufficient customer base - fewer than 50 customers in 2+ geographic regions or under 100 total production customers
  • Limited revenue scale - less than $75 million in annual APM-specific revenue, or under $10 million with growth below 25%
  • Low market visibility - ranking outside the top 20 vendors in Gartner's customer interest indicator based on inquiry volume, job listings, and competitive mentions
  • Incomplete technical capabilities - supporting fewer than 3 modern application frameworks or lacking 4 of the 7 core technical capabilities
  • Inability to observe complete transactional behavior through agents or distributed tracing
  • Primary focus on managed service provider sales rather than direct enterprise customers
  • Recent market entry without established track record

Q: What differentiates Ability to Execute vs. Completeness of Vision?

A: Ability to Execute focuses on current market performance and operational capabilities - including product quality, financial viability, sales effectiveness, market responsiveness, marketing execution, and customer experience. It measures how well vendors are currently performing in delivering and supporting their solutions. Completeness of Vision evaluates strategic direction and future potential - including market understanding, product strategy, business model, innovation capacity, and geographic expansion plans. It assesses vendors' ability to anticipate and meet future market requirements and their vision for transformational technologies rather than current market state.

Reference

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