Groundwork gets record Q1 revenue

GroundWork Open Source closed another record revenue quarter. GroundWork's software and services are now being utilised by organisations in over 20 countries worldwide to monitor and manage more than one million servers and network devices.

"GroundWork's strong start to 2007 demonstrates that open source systems and network management continues to gain a foothold in the mid-market as companies realise that they no longer need to fall victim to the costs of HP OpenView and others," said Ranga Rangachari, CEO of GroundWork Open Source. "These legacy proprietary solutions do not provide enough additional value to justify the magnitude more cost relative to open source alternatives, and that's good news for customers."

Gartner recently released a report entitled "'Big 4' Management Software Vendors Face Competitive Threats" noting that customer loyalty to the "Big 4" (HP OpenView, IBM Tivoli, CA Unicenter, BMC Patrol) is fragile and that the open source management industry appears to be a more immediate threat to the major IT management software vendors not pursuing open source products. The report also discussed customer dissatisfaction with the lack of interoperability of their proprietary tools, functionality that is inherent to GroundWork's open source solution.

GroundWork's recent customer additions include PlanetOut, State of Oregon, Podshow.com, Tacoma Public Schools, IT BV, InfoUSA and ADP in the UK.

"We needed a strong monitoring solution to keep an eye on IT operations and network traffic but did not want to pay for features we would not use," said Tom Cignarella, Vice President of Technical Operations for PlanetOut. "GroundWork delivered, giving us clear insight into our network while taking advantage of the lower cost and flexibility of open source."

Further validating GroundWork's commitment to the channel-focused business model, the company derived a third of its business from the channel and signed new partners, including Incentra Solutions and e4e, to its Global Partner Network.

"At Incentra, our goal is to provide a full range of IT solutions for enterprise customers," said Gary Wallin, Director of Technical Services at Incentra Solutions. "Open source provides customers more flexibility, and you can't beat the price. It is a great fit for dynamic and heterogeneous IT environments operating under budget constraints. GroundWork's open source solution is going to change the IT operations market and provide new options for IT managers."