ServiceNow Acquires Lightstep: Enhancing Application Performance Monitoring

ServiceNow Acquires Lightstep to Enhance IT Operations

This morning, ServiceNow announced the acquisition of Lightstep, a startup specializing in application performance monitoring. Crunchbase data indicates that Lightstep had previously secured over $70 million in funding.

The financial terms of the acquisition were not disclosed by either company.

Strengthening IT Operations with Lightstep’s Technology

ServiceNow intends to integrate Lightstep’s capabilities to bolster its existing IT operations portfolio. This integration will empower customers with enhanced application performance monitoring tools.

The primary goal is proactive problem detection, identifying potential issues before they escalate into significant disruptions affecting website or application availability.

Statements from ServiceNow and Lightstep Leadership

Pablo Stern, SVP & GM for IT Workflow Products at ServiceNow, stated that the acquisition will fundamentally change how software solutions are delivered. He emphasized the benefits for customers, including faster innovation and increased confidence in navigating the evolving landscape of work.

Ben Sigelman, founder and CEO of Lightstep, expressed his belief that aligning with a larger organization like ServiceNow is the ideal path forward for his company.

Sigelman noted that the combined entity will be able to realize a shared vision of extending observability across the enterprise, providing clarity and confidence to all teams involved in modern digital businesses.

The Competitive Landscape of Application Performance Monitoring

Lightstep operates within the competitive application performance monitoring (APM) market. Key players in this space include Datadog, New Relic, and AppDynamics, which was acquired by Cisco in 2017 for $3.7 billion.

Larger enterprise vendors are increasingly acquiring smaller startups in this sector, demonstrating the growing importance of APM solutions.

Recent Acquisitions in the APM Market

IBM has also been active in this area, acquiring Instana last November and subsequently purchasing Turbonomic for $2 billion at the end of the previous month.

These acquisitions highlight the critical need for robust application monitoring to ensure business continuity and maintain brand loyalty.

The Importance of Proactive Monitoring

Even minor performance issues, such as slow loading times or general malfunctions, can frustrate users and potentially drive them to competitors.

Effective APM software allows customers to observe system behavior and identify problems before they impact a large user base.

About Lightstep

Founded in 2015 and based in San Jose, California, Lightstep has attracted investment from firms including Altimeter Capital, Sequoia, Redpoint, and Harrison Metal, totaling $70 million.

Notable customers of Lightstep include GitHub, Spotify, and Twilio.

The acquisition is anticipated to be finalized within the current quarter.