ScienceLogic Pursues Managed Virtualization, Cloud Opportunities

ScienceLogic, which develops IT management software for enterprises and service providers, is aggressively pursuing virtualization and cloud opportunities. What's the strategy? I caught up with CEO Dave Link and other ScienceLogic executive team members. Here's some perspective.

ScienceLogic competes against CA Technologies, BMC, Hewlett-Packard and IBM -- the big four corporate IT management platform providers.

How does ScienceLogic differentiate itself? Automation, according to Link: “Automation is a huge play for us going forward in service provider marketplace. They have to automate a whole series of processes.” And there’s no doubt that the needs of service providers drive ScienceLogic’s innovation. Forty percent of the company’s annual revenue comes from service provider customers and service providers also make up 65- to 70-percent of ScienceLogic’s more than 150 customers throughout the U.S., UK, EMEA and Latin America. Enterprise companies account for 30 percent of ScienceLogic’s annual revenue.

ScienceLogic's compound annual growth rate (CAGR) has been 70 percent over the past eight years. Looking ahead, ScienceLogic's technology platform does not have to be reengineered for the managed virtualization and managed cloud computing push, according to Senior Vice President of Marketing Steve Harriman. “It’s been designed for this from the beginning," he added. "No new tool set is needed to manage virtualization or cloud. Customers can manage it from the EM7 platform. We offer best in class monitoring and management capabilities so everything can be managed from a single data base.”

So, who's running ScienceLogic? True believers apparently include DataPipe and Logicworks. DataPipe recently announced record profits for Q2 2011. And in early August, LogicWorks is expected to announce that it will use ScienceLogic’s EM7 IT cloud management platform to deliver new service monitoring solutions.

The cost of ScienceLogic’s solution varies on the amount of infrastructure being managed. The company offers a subscription and a month-to-month pricing model that even small service providers can afford, Harriman asserts.

In some ways, it sounds like ScienceLogic is positioning itself against Nimsoft -- the mid-market MSP software provider. CA Technologies acquired Nimsoft in 2011. Since that time, Nimsoft has pushed beyond on-premise software to offer cloud-based managed services tools as well as service desk solutions. Forrester Research recently suggested that Nimsoft's revenues have grown 80 percent since CA acquired the company.

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