New Relic, Inc., the leading software-as-a-service provider of application performance management solutions, today announced the general availability of On-Demand Billing for RPM Version 2, the next generation of its leading application performance management solution. Used by IT operations and development teams around the world to monitor, troubleshoot, and tune web applications, RPM now becomes the first IT management tool to be licensed with a usage-based pricing model.

New Relic RPM is an application performance management solution currently used by more than 2,500 organizations to manage 25,000 production application instances deployed in corporate datacenters and in public and private clouds. RPM was designed for today’s IT operations and development teams seeking a management solution that offers proven capabilities for application monitoring and troubleshooting while addressing their need for an easy-to-deploy, inexpensive solution with low cost of ownership.

With the introduction of RPM Version 2, New Relic offers customers a new option for paying for their powerful application management solution. With the On-Demand plan, customers only pay for the actual hours their hosts are connected to the RPM application management service. This can have significant cost-saving benefits for organizations deploying applications in dynamic environments where there is high variability in the host count. New Relic’s Annual and Monthly billing plans enable customers to pay for a specific number of managed hosts each month.

"With its SaaS solution, New Relic pioneered a completely new approach to application-centric performance management," said Bernd Harzog, principle analyst with The Virtualization Practice. "Their innovation continues with the introduction of on-demand billing. This model can provide tremendous benefits to companies deploying applications in highly dynamic computing environments, whether in a cloud or in physical datacenters. The time has come for this level of flexibility, which very clearly reflects the realities of how organizations are using computing resources today."

"We believe that on-demand billing is the way all IT software will be licensed in the future," said Mark Sachleben, chief operating officer of New Relic. "The current IT purchasing process, with its shelfware, long-term contracts, months of negotiating, annual maintenance fees, and haggling over seat licenses, is incredibly inefficient and costly, both in terms of dollars and time. With this new model, a first in the application management industry, we have created a way of doing business that our customers find refreshingly open — transparent pricing and discounting, no hidden fees, and a pay-for-what-you-use model."