This is one story that keeps repeating again and again ! Standalone Network Performance Management software vendor NetQos, sells itself to CA for about $200 M in cash.(http://www.ca.com/us/press/release.aspx?cid=215047) (like Altiris /Symantec, Opsware/HP, Concord/CA, Scriptlogic/Quest etc.)

It is sad to see NetQos go this way as they were one of the fastest growing Network management vendors (like ManageEngine, Solarwinds, and Nimsoft) that were actually fighting and winning against the Big 4.

The rapid commoditization of flow-monitoring software ( one of NetQos’s strengths  ) was probably making it difficult for NetQos to keep charging premium prices during these tough economic times.(NetQos prices start upwards of $50K and average deal sizes running to $250K – compare this to the average ManageEngine Netflow Analyzer deal at $15K ).

My guess is they got hit really bad in 2009. Otherwise what is the need for a company that claimed to be growing at 58% CAGR over the last 5 years to sell out at pretty normal valuations – just 3.5 times of 2008 revenues ! I am no expert in valuations (are there any experts at all – going by the valuations doled out for skype, facebook etc. ) but this seems very ordinary to me.

Anyway goodbye NetQos ! (as we know it in standalone form) Welcome CA NetQos Performance Center ! For IT administrators still looking for a good IT management vendor outside of the Big 4 – check out the ManageEngine Product line – you will be pleasantly surpriced !