Zenoss Open Source IT Management: Disrupting IBM, HP, CA & BMC?

Zenoss Open Source IT Management: Disrupting IBM, HP, CA & BMC?

Zenoss Company LogoZenoss, the open source server and network monitoring software provider, says 2011 revenues grew 300 percent year over year (YoY). The company claims IT service providers increasingly opt for Zenoss rather than management platforms from IBM, HP, CA Technologies and BMC.  Anecdotal evidence suggests Zenoss's annual revenues will easily exceed $10 million in 2011. But is Zenoss really disrupting the Big 4 IT management software providers?

MSPmentor has heard open source momentum claims over the years. For instance, GroundWork (formerly GroundWork Open Source) has often positioned itself as an alternative to the Big 4 IT management platforms. And no doubt, both GroundWork and Zenoss have had their share of IT service provider wins. The evidence: Zenoss revenues were $8.4 million in 2010, up 1789 percent from 2009, according to the Inc. 5000 report.

Also, companies like Zenoss are gaining more credibility by hiring enterprise IT executives. For example, Zenoss hired CTO Alan Conley, a Cisco Systems veteran, in recent months. Now Zenoss is shifting the spotlight onto multiple business milestones, including:

  • Releasing Zenoss Service Dynamics -- a management solution designed to help root cause analysis across private and public IT infrastructures.
  • Being named to the Inc. 500 List of Fastest Growing Companies for the second year in a row
  • Announcing support for Cisco Nexus 7000 Series Switches
  • Releasing ZenPacks for OpenStack and Puppet to support heterogeneous cloud environments
  • Zenoss CEO Bill Karpovich named Ernst & Young Entrepreneur of the Year 2011 in Maryland
Those anecdotes suggest Zenoss has momentum. But since Zenoss is privately held, MSPmentor does not have a feel for the company's potential profitability.

Additional insights from Joe Panettieri.

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