“You need a unit of monitoring. You need to approach monitoring in a little bit of a different way where it represents something that is constant. So take Amazon, right? Like, let's just say take Amazon to a 15 year journey. And, you know, when they started off, let's say they had some architecture, they're measuring that, they're measuring some database queries and stuff like that. Take that forward 15 years, you know, the whole architecture will be completely different. The application will be completely different. But what is consistent is people are logging in, people are adding items to cart, people are checking out, right? So that's where we came up with this unit of monitoring called Business Transactions, and that really gave it like this anchor on, you know, with the change, with the architecture, it basically is like a very, very manageable unit, and that was kind of really like the core thesis.”
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More from Bhaskar S.
Insight
Offering proof-of-concept trials in production grabbed enterprise buyers' attention.
“And the third thing we said, which was, I think, surprising to a lot of people is that why don't we do a POC in production, right? That was the biggest thing that I would say got people to take notice because they're like, they're this sure of what they built.”
Bhaskar S.Mar 30, 2026▶ 23:43He launched a free product for enterprise customers—then grew to $12M ARR in 2 years. | Bhaskar S... · PMF Show
AssertionSupported
AppDynamics brought deep-dive transaction profiling into production environments safely.
“And typically something like that would only happen in dev or test scenarios. We brought that into production saying, if you do it safely, if you do it with the right heuristics, you can actually go down to that type of level. And that's really what gave us th…”
Bhaskar S.Mar 30, 2026▶ 7:35He launched a free product for enterprise customers—then grew to $12M ARR in 2 years. | Bhaskar S... · PMF Show
Disclosure
AppDynamics launched exclusively for Java to win early enterprise customers.
“Second, we only wanted to build this for Java. Right. So there's obviously multiple languages, things like Ruby on Rails and all of that type of stuff was also very popular back then. But we saw that the core of the enterprise, you know, we wanted to really go…”
Bhaskar S.Mar 30, 2026▶ 12:00He launched a free product for enterprise customers—then grew to $12M ARR in 2 years. | Bhaskar S... · PMF Show
Disclosure
AppDynamics sold exclusively for production environments at a single price point.
“What we said was, let's only do production. Let's not even bother to have a dev version. Let's not even bother to have like a test version, et cetera. Let's only do production, and there's only one cost. So if you want to run it in development, we can give you…”
Bhaskar S.Mar 30, 2026▶ 15:36He launched a free product for enterprise customers—then grew to $12M ARR in 2 years. | Bhaskar S... · PMF Show
AssertionNot checkable as stated
AppDynamics grew revenue from $2M to $12M in its second year.
“I think in the first year we started in oh eight, as you know, and it's been a while, but like just from my memory, the first year we did about a couple million, and then in the second year we did about 12. And the following year we doubled, the following year…”
Bhaskar S.Mar 30, 2026▶ 28:51He launched a free product for enterprise customers—then grew to $12M ARR in 2 years. | Bhaskar S... · PMF Show
AssertionNot checkable as stated
A free product launch drove over 60% of AppDynamics' inbound leads.
“So that sort of really gave us that momentum because 60% plus of our leads you know, from then on started coming in from that.”
Bhaskar S.Mar 30, 2026▶ 30:34He launched a free product for enterprise customers—then grew to $12M ARR in 2 years. | Bhaskar S... · PMF Show
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