Startup Raises $165 Million To Take Microsoft, HPE Customers In $34 Billion Market – Forbes
In the battle for a single market, being big can cost you customers and being small can help you gain market share.
And the competitive success of one small company in a $34 billion market does not bode well for investors in two big rivals. More specifically, Microsoft and Hewlett Packard Enterprise are losing customers to Los Altos, Calif. and Vienna, Austria-based automated software testing tool supplier, Tricentis in the $34 billion software testing market. (I have no financial interest in the companies mentioned in this post).
Tricentis — which raised a whopping $165 million Series B financing round on January 23 — helps companies to speed up and reduce the cost of software testing. As a former coder, I know that the first time you write software, it often does not work properly.
But when writing code for a large organization, the time, cost, and potential for error expands dramatically. It used to be that companies would follow a disciplined so-called waterfall approach to writing applications — such as a program to track inventories.
Business analysts would kick off the waterfall by producing a functional specification that described what the system was supposed to do. That spec would be handed off to coders who would try to turn them into software.
After the software had been written testers would try to find all the bugs — passing them back to the coders to fix. By the time the back and forth between coders and testers had whittled down the errors, the system would be put into a so-called beta test where more bugs would be discovered. Ultimately the system might work well — but at a high cost.
These days organizations are adopting better approaches dubbed agile or DevOps. Here the code is written in smaller batches and tested right away before it is put into production. With the rising popularity of software as a service, companies are releasing new versions of their code far more frequently than they used to — which puts a premium on speed, efficiency and quality.