New Relic, Inc., the leading software-as-a-service provider of application performance management (APM) solutions, today announced that it is providing on-demand web application management for more than 5,000 active customers. Each of these customers is currently using New Relic’s flagship product, RPM, to monitor, troubleshoot, and tune Java and/or Ruby web applications in dedicated datacenters, public and private clouds, or in hybrid environments.

“Regardless of whether organizations are deploying their apps in virtual or dedicated datacenters, there is no question that they are looking for new approaches to traditional web application management,” said Bernd Harzog, a principal analyst at The Virtualization Practice who focuses on application performance management. “SaaS-based solutions like New relic that can be implemented quickly at a fraction of the cost of traditional systems can help companies become more responsive to their customers’ needs without breaking the bank and without compromising on quality.”

New Relic first delivered RPM in July 2008 as an easy-to-use, economically feasible alternative to traditional APM products. Within a year, it had become the leading on-demand tool for monitoring and troubleshooting web applications built on Ruby on Rails. In the fall of 2009, the company introduced New Relic RPM for enterprise Java, with companies such as Best Western, Intuit, Shutterfly and Sony having since adopted it as a new approach to ensuring superior web application service delivery. In fact, more than half of the company’s new business this year so far has been for Java application monitoring. During the first six months of 2010, New Relic’s direct sales have increased twofold and the company has added new customers at a rate twice that of the same period in 2009. The company is currently on pace to add more new customers this year than all previous years combined.

“We are extremely pleased to be serving more than 5,000 customers and this milestone marks a tremendous achievement for the company,” said Lew Cirne, New Relic CEO and creator of modern-day production web application management. “But we’re not done. The fact that we reached this many customers so early in our company’s history demonstrates that organizations are thirsting for effective, agile, and affordable application management that provides high value across development platforms, and in both dedicated and virtual environments. We look forward to continuing to provide companies with the technologies and tools they need to be successful.”

About New Relic RPM

New Relic RPM is an on-demand performance management solution for web applications developed in Ruby, Java or JRuby. New Relic RPM is fully implemented in minutes and provides deep, 24x7 visibility and code-level diagnostics for web applications deployed on traditional, dedicated infrastructures, private and public clouds, or any combination thereof. RPM’s real-time metrics enable application owners, developers and operations teams to quickly and cost effectively monitor, troubleshoot, and tune application performance. Learn more about RPM and subscribe