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Compuware acquires performance management company Gomez


By Jeff Feinman
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October 7, 2009 —  Compuware is looking to bring in Web application monitoring capabilities, and fill its quality and testing gap, all in a single swoop.

The company today signed a definitive agreement to acquire application performance management company Gomez for US$295 million in cash. The acquisition is expected to close in November.

Compuware president and COO Bob Paul said that Compuware has lacked application monitoring capabilities beyond the firewall, and users hit a blind spot when trying to monitor Internet or cloud applications. Gomez adds those Web application performance views, letting users view content delivery networks and ISP providers. Additionally, Gomez’s platform can be used in quality and testing.

“The beautiful thing about what’s been announced today is that the assets Gomez brings to market are equally valuable in the performance monitoring space as they are in the pre-production testing space,” Paul said.

Back in May, Compuware sold its testing and QA product line to Micro Focus, because the company believed quality and testing wasn’t a key area and was expensive to maintain. Paul said that Compuware had a “diluted focus” around its investments in quality and testing, mainframe, and IT portfolio management.

“When we looked at our quality and testing assets, we realized we had a mishmash of stuff,” he said. “In some cases, it was delivering strong value, but in a lot of cases, the required investment to keep it localized and integrated was a massive, massive investment.

"A couple of years ago, we looked at our assets and realized that to return Compuware to greatness, it was going to require a level of focus the company hadn’t experienced.”

As a result, Compuware put its focus on application performance monitoring, and Gomez’s on-demand platform provides a “natural offshoot” to provide that, Paul explained.

He added that with this acquisition, Compuware is aiming to provide better monitoring for mobile development. He also talked about applications becoming more componentized, with components being delivered real-time to a single Web page when someone visits it. More often than not, Compuware customers were unaware of any performance problems among those components.

“We don’t have this offering today,” Paul said. “We do great performance monitoring behind the firewall, but to actually have real-time data coming in from anywhere in the cloud or Internet, down to the last mile of when that application is being used, it doesn’t exist today.”

Headquartered in Lexington, Mass., Gomez employs 272 people around the world. Most of these employees, including the leadership team, are expected to remain with Compuware after the close of the transaction, according to Compuware. The name Gomez is also expected to remain.




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