IT Operations StartUp Landscape

It Operations StartUp Landscape Tracxn Leadengine


IT Operations are the set of all processes and services that are both administered by an IT staff to their internal or external clients and used by themselves, to run themselves as a business. There are many definitions and they vary amongst various vendors and IT organizations depending on the services/products they’re offering and the purpose of their marketing. Usually, these services include management, envisioning, planning, design, implementation, construction, deployment, distribution, verification, installation, instantiation, execution and maintenance.IT operations management is the process of managing the administering, capacity, performance, and availability of an organization’s IT infrastructure.

This includes on-premises data centers, private cloud deployments, and public cloud resources.

The article covers the business landscape and the environment that startups face in this economy.


Every organization that uses computers has some loosely-defined IT operations which is usually based on how it tends to elucidate internal and client needs. In most organizations, IT operations are usually considered to be different from IT applications even though there are some functions that overlap between both departments. IT operations determine the way software and hardware are managed by an organization including other IT support such as device management, mobile contracting etc.

Most people do not know the difference between IT Operations and IT applications, one thing for sure is that IT Operations generally covers everything (all IT functions) outside of Application programming and management. Thus the activities performed by them are split into three categories:

Network Infrastructure: Infrastructure includes router, hubs, firewalls, DNS servers, file servers.

Server and Device Management: This includes PC provisioning, email configuration, storage management etc.

Computer Operations and Help Desk: This includes disaster recovery, user provisioning, help desk management etc.

Problem and Implication

Some startups have the following complaints regarding their IT operations:

  • Integration Issues: As new technologies get into play, their collaboration with older technologies becomes a problem. This has led to data redundancy and duplication in multiple places.

  • Security risks: The threat by black hackers are constantly on the rise and startups are usually on the forefront of these dangers. Loss of private data, trade secrets, customer information are the implications of this problem

But the problems faced by those in the IT operations department are:

  • Redundant time spent fixing business-impacting application outages or slowdowns: Those in IT operations spend too much time fixing application performance problems. The technical term for the time taken to resolve problems is called Mean Time to resolve issues (MTTR). Most operators complain that they have a high average when it comes to this and this reduces the time they spend doing other IT operations.

  • Problems are only discovered when users complain about them: Outages are supposed to be an expected outcome but they can only be rectified when customers complain about them; when they don’t this becomes a problem that accumulates into catastrophic crashes for the organization.

  • Mixing of technologies: When it comes to management of some technologies, this weighs a ton on the backs of the operators. Determining the source of problems become hectic because most management tools aren’t built to support various technologies.

  • Too many experts involved in problem solving: This shouldn’t be a problem but most operators complain about this. Time spent on bridge calls is part of the process problem that they complain about. Bridge calls are attended by specialists – experts from the web tier, the database, the application server, etc.

Need Payoff

800+ companies in the sector, 198 funded in last 5 years, $990M invested in 2016. Western Technology Investment, Sequoia Capital, Accel Partners are the most active investors.

Monitoring: Monitoring application, network, infrastructure, cloud, website, server and DB. There have been 220 companies founded in the last 8 years with an overall funding amount of $2.1B.

There are 5 subsectors here:

APM: Monitoring and management of performance and availability of software applications.

Website Monitoring: Monitoring of website availability, performance and load testing.

NPM: Monitoring, troubleshooting, and performance reporting solutions for Enterprise Networks.

Server Monitoring: Gathers data from various sources, creates dashboards to monitor alerts.

IPM: Monitoring and management of the server and database.

Management: Management of logs, servers and containers. With 61 companies founded in the last 7 years and an overall funding amount of $976M.

There are 4 subsectors here:

Disaster Recovery: Recovery or continuation of vital infrastructure and systems after a natural or human-induced disaster.

Log Management: Aggregates, indexes, parses log data and generates real-time metrics.

Server Management: Configuration management of servers.

Container Management: Management of container and micro services.

ITSM: IT Service Management ensures resolution of requests and issues, deployment of software, tracking of assets. There have been 73 companies founded in the last 7 years with an overall investment of $782M.

There are 5 subsectors here:

Asset Management: Gathering and maintaining detailed hardware and software inventory information.

Release Management: Software rollout planning, distribution and installation

Incident Management: Restore normal service operation as quickly as possible and minimize the adverse effect on business operations.

Service Desk: Handles incidents and requests, offering an interface for other ITSM processes.

Change Management: Includes steps for request for change, impact analysis, and approval/denial, implement change and review/reporting.

Some Interesting companies are:

Tanium (2007, Berkeley): Enterprise endpoint security and management. Andreessen Horowitz, Institutional Venture Partners, Citi, Bullpen Capital, TPG, Mitsubishi are major investors.

Sumo Logic (2010, Redwood City): Cloud-based log management and analytics

Accel Partners, Greylock Partners, Sequoia Capital, Institutional Venture Partners, DFJ Growth, Glynn Capital, Tenaya Capital, Sutter Hill Ventures are major investors.


IT Operations teams that focus on how infrastructure performance impacts end-user service levels and use tools that manage transactions, applications, and infrastructure together. Their role is very significant on every organization. Investment wise, they are important in maintaining the efficient running of your business.


  1. The WWW

  2. Tracxn Report, Nov 2016

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