We are defining a new category of enterprise software that is designed to make
every aspect of modern software and infrastructure observable. Our cloud-based
platform and suite of products, which we collectively call the New Relic Platform,
enable organizations to collect, store, and analyze massive amounts of data
in real time so they can better operate their applications and infrastructure,
improve their digital customer experience, and achieve greater business success.
We design all our products to be highly intuitive and frictionless; they are
easy to deploy, and customers can rapidly, often within minutes, see results
and realize benefits. Software developers can build better applications faster,
as they can see how their software will perform and is actually performing for
end-users. IT operations teams can use our products to quickly find and fix
performance problems as well as prevent future issues. Business users such as
product managers can get answers to how their new product launch is being received,
or how a pricing change impacted customer retention, without waiting for help
from IT. For each of these audiences - software developers, IT operations, and
business users - the New Relic Platform can help them operate their digital
business.
Digital initiatives have become critical to the success of global businesses
across industries. Software is driving modern customer experiences and is found
in applications and throughout the architectures on which those applications
run: servers, websites, operating systems, mobile devices, and other IT assets.
The use of this software generates huge volumes of data about the end-user experience
and how the application is performing, as well as the health of the underlying
infrastructure. Historically, organizations collected and analyzed only a small
fraction of this data due to technology and business constraints, including
high costs and limited benefits, except for specific use cases such as application
performance management, clickstream analysis, and web traffic measurement. Legacy
software products were typically customized, expensive, required training, and
thus limited to business-critical applications within large organizations. As
a result, the vast majority of this data has been underutilized.
Fundamental technology and business trends are now enabling continuous improvements
to digital environments. First, organizations around the globe are adopting
digital transformation strategies to meet the demands of an increasingly digitally
savvy customer base. Second, companies are increasingly adopting cloud technologies,
utilizing the cloud as a new foundational architecture to support their digital
business. Both of these shifts have put tremendous pressure on internal technology
teams to adapt to these new business demands. And, as a result, they are adopting
new agile processes and software development operations, or DevOps, practices
that enable them to move to the cloud faster, and take advantage of modern infrastructure
technologies like microservices and containers, in order to accelerate their
pace of innovation and responsiveness to business demands.
Amidst all of these changes to purpose, people, process, and technology, we
continue to see an even greater opportunity for our New Relic Platform to empower
technology and business users to harness data in order to operate their digital
business. To do that, we provide customers with our software code, called agents,
to add to their applications and infrastructure quickly and easily. These intelligent
agents enable our users to identify vast amounts of data they would like to
have sent to our cloud-based, big data database. Our database stores and organizes
the data that we receive from our users for analysis through dynamic, real-time
dashboards that users can easily configure to monitor their key metrics and
events and quickly make queries using simple phrases. Our unified platform and
intuitive product design results in users being able to quickly receive alerts
and insights into their data. With this full-stack visibility, companies can
significantly improve the quality of their digital initiatives, understand how
their customers are engaging with their digital business in real-time, and scale
the performance of their digital initiatives to better meet the demands of their
busiest days.
Our New Relic Platform is made up of our integrated suite of products, a powerful
big data database, and an open and extensible cloud platform. Our products for
technology users focus on software performance management and monitoring and
include New Relic APM, or Application Performance Management, New Relic Mobile,
New Relic Browser, New Relic Synthetics, and New Relic Infrastructure. Built
into the core of our technology platform, New Relic Insights provides big data
analytics to both business and technology users that enable them to easily extract
actionable information from the massive quantities of data flowing through their
software.
In addition to our paid products, we offer key platform capabilities in the
form of applied intelligence, alerts, and plugins. New Relic Applied Intelligence
consists of Dynamic Baseline Alerts, Error Profiles, and Radar, each of which
is designed to analyze customer data and provide actionable results. New Relic’s
alerting capabilities offer policy management that delivers alerts across our
entire suite of products. We also offer plugin architecture including application
programming interfaces, or
APIs, and software development kits, or SDKs, for customers and partners to
embed and extend our platform into their products. Today, there are hundreds
of plugins to extend our functionality to other applications and infrastructures
including Amazon Web Services, Microsoft Azure, Google Cloud Platform, and Pivotal
Cloud Foundry.
Our go-to-market strategy centers on creating a frictionless experience for
our customers, enabling them to quickly see results and share their insights
broadly across their company. We combine grassroots user adoption with both
low-touch and high-touch sales approaches. Our products are easy to download
and use, which allowed us to build a large base of users within smaller organizations
before we even began to grow and develop our enterprise sales organization.
Over time, users within larger organizations helped us to grow our footprint
within their companies, as they often increase the number of applications monitored
and expand their use of our products. This has led many of our top customers
to develop into accounts with hundreds of users across multiple roles, each
accessing a common set of data through the New Relic Platform to deliver real-time
visibility into the operations of their digital business. Today, we have a direct
enterprise sales and support operation in order to better market to and service
the enterprise market, which now represents a majority of our revenue and revenue
growth.
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