Vendor Spotlight: Idera

Idera, Inc. has been around since 2000 and its core product of database analysis tools has been doing pretty well. In the past ten years, the company has been on a spending spree, buying up a long list of companies to expand. The company has also gone through a series of sales and buy-ins that have transformed its ownership from an entrepreneur-led business to a fund-owned multinational.

The Idera story is driven by a very active boardroom and industry analysis struggle to keep up with all the news coming out of the business.

Founding and Background

Idera Inc. is a U.S.-based software company primarily known for its suite of database management, development, and application tools. It was founded by Tien Gah “Alan” Lee in 2000 and is headquartered in Houston, Texas. The company produces database administrators (DBAs), and developers to manage and optimize data systems, especially for SQL Server, Oracle, MySQL, and other database environments.

Lee gave himself the position of Company Secretary and Head of Development. The senior positions in the business were given to John Mercadante (President) and Matt Jordan (CFO). The company initially started by developing tools for database management, especially for Microsoft SQL Server. It gained a strong reputation with its SQL Diagnostic Manager, which helped monitor and optimize database performance.

In 2003, the company was sold to BBS Technologies, which was owned by Rick Pleczko. The Idera company name disappeared for a while but continued as a product line. BBS Technologies specialized in backup systems.

In 2012, Pleczko renamed BBS Technologies to Idera Inc. The transition to the Idera brand was planned by Randy Jakops, who, at the time, acted as an Executive Consultant. Jakops was appointed to the position of Chief Executive Officer (CEO) in June 2013 and he holds that position to this day. In December 2013, Jakops brought Chris Smith on board, who is the company’s Chief Operating Officer (COO) to this day.

Pleczko sold the business to TA Associates in 2014. TA Associates is a private equity firm and still has a number of partners on the board of Idera Inc. – the fund is still a shareholder in the company.

The current Chief Financial Officer (CFO), Trey Chambers joined the company in January 2015 and completed the executive team that we see at Idera, Inc today.

In 2017, TA Associates recapitalized Idera with a $1.125 billion investment from fellow investment fund HGGC, which took a majority stake. HGGC’s Chairman and Founder, Steve Young, became the Chairman of the Board at Idera – a position he still holds.

All the Non-Executive Directors at Idera are partners at the investment funds that own the company. Partners Group bought into Idera in 2019 and supplies three directors.

Timeline and Evolution

Here is a timeline and evolution of Idera, Inc., highlighting key milestones, acquisitions, and product expansions over the years:

• 2000: Idera, Inc. is founded in Houston, Texas. The company initially focuses on providing database management solutions, specifically for Microsoft SQL Server.
• 2004: Idera becomes part of BBS Technologies.
• 2004: The company launches SQL Diagnostic Manager, a tool for monitoring and optimizing SQL Server performance.
• 2005: Launch of SQL Safe Backup for efficient SQL backups.
• 2006: Launch of SQL Secure, a database security package.
• 2010: The company grows its customer base within the Microsoft SQL Server community, gaining a reputation for delivering enterprise-grade database solutions.
• 2012: BBS Technologies changes its name to Idera Inc.
• 2013: Randy Jakops becomes CEO and assembles the executive team to implement his expansion plan.
• 2014: TA Associates buy into Idera, Inc., gaining a majority stake.
• 2015: Idera makes a landmark acquisition by purchasing Embarcadero Technologies, a leading software development tool provider.
• 2017: HGGC invests $1.125 billion, providing the funding for Idera’s acquisition spree.
• 2017-2022: Idera implements its expansion plan with acquisitions, up to five purchases per year.
• 2022–2023: Idera, Inc. splits its Idera brand into business units under different groups:
  • Idera DevOps Tools
  • Idera Database Tools
  • Idera Developer Tools
• 2023: Idera becomes a multi-brand company, serving a wide variety of customers in the database, development, and DevOps sectors.

Today, Idera, Inc. operates with over 50 software brands and continues to be backed by private equity firms.

Company Ownership

Since 2014, Idera, Inc. has been majority-owned by private equity funds. The first fund to buy in was TA Associates, which was the majority owner until 2017, when a large cash injection from HGGC gave that company the largest stake in the business. Partners Group gained a stake through an investment in 2019. However, HGGC is still the majority shareholder in Idera, Inc.

Idera Acquisitions

Idera has a clear growth strategy that is based on acquisition. The majority of the acquisitions have been maintained within Idera, Inc as separate divisions and brands and they are not marketed under the Idera name.

Here is a timeline of Atera’s acquisitions since 2015:

1. iDevFactory A producer of SharePoint administration tools (sold to Metalogix in October 2013) – June 7, 2010
2. Precise Software A provider of application performance management software – July 2, 2013
3. CopperEgg A cloud service monitoring system provider – July 9, 2013
4. Uptime Software, a server infrastructure monitoring tool brand – November 11, 2014
5. Embarcadero Technologies Producer of development tools, some of which were absorbed into the Idera brand, while the original brand continues as a separate division of Idera – October 7, 2015
6. Gurock The maker of test case management software  – June 28, 2016
7. AquaFold Creator of a database IDE- July 19, 2017
8. Sencha, the provider of a JavaScript application development framework – August 25, 2017
9. Ranorex A test automation system – October 23, 2017
10. Webyog MySQL database management systems – April 11, 2018
11. Froala The producer of a WYSIWYG HTML editor – June 19, 2018
12. Whole Tomato The maker of an assistant for Visual Studio. Integrated into Embarcadero – 2 August 2018
13. Optimyth Software aka Kiuwan A software testing service – October 5, 2018
14. Assembla The creator of a Web-based version control and project management platform – November 1, 2018
15. Lansa The maker of a low-code application development tool  – December 18, 2018
16. Travis CI The provider of an open-source continuous testing system – January 23, 2019
17. WhereScape A data warehouse automation provider – September 19, 2019
18. FusionCharts Provides a data visualization system – March 16, 2020
19. Qubole A data lake management system creator – October 13, 2020
20. APILayer A real-time API discovery and management system provider  – January 18, 2021
21. PreEmptive The creator of a code obfuscation system – March 1, 2021
22. Xblend The maker of Xray and Xporter for Jira test management and reporting – May 4, 2021
23. IDM Computer Solutions The makers of UltraEdit, a text editing package – August 24, 2021
24. BitTitan A cloud migration assistant – October 27, 2021
25. Yellowfin International A data analytics platform – January 28, 2022
26. Filestack The provider of a file upload and processing facilities – April 1, 2022
27. Hexawise A software test design tool provider – May 3, 2022

These acquisitions have helped Idera expand its portfolio and strengthen its position in the software industry.

Key People

• Tien Gah “Alan” Lee, Founder, Company Secretary, and Head of Development: Alan Lee was the founder and sole owner of Idera, Inc at its creation. Lee sold the business to Rick Pleczko in 2003. Little is known of Lee’s activity since he left Idera.
• John Mercadante, President/Chairman: Mercadante helped set up Idera, Inc. before the company was taken over by BBS Technology. Since leaving the company, he has been CEO of other technology firms and currently runs a technology consultancy, called Newton Vision Corp. He is simultaneously Executive Vice President of AmeriCasa Software.
• Matt Jordan, CFO: Jordan successfully ran the company’s finances from 2000 until the sale to BBS Technologies. He has since followed a successful career as the CEO of a number of car parts businesses. He is currently CEO of two companies: Covercraft industries, which makes covers for cars and vans, and PerTronix Performance Brands, a car parts retailer.
• Rick Pleczko, Chairman, Resident, and CEO: Pleczko was instrumental in the reformation of Idera as owner and CEO of BBS Technologies. He left the business in 2013 and sold his shares in 2014. He has since invested in and run a long list of IT ventures, Chairman, CEO, or board member of nine technology businesses.
• Randy Jakops, CEO: Jakops arrived at Idera in October 2012 as a management consultant to advise the board on formulating a new expansion strategy. This led to him becoming CEO in June 2013. He has continued to lead the business through its changes in ownership, maintaining the continuous strategy of expansion by acquisition.
• Chris Smith, Chief Operations Officer: Smith has been the COO of Idera since December 2013. He has defined and implemented guidelines for integrating acquisitions into the corporate framework of Idera.
• Trey Chambers, Chief Financial Officer: Chambers started his career as an auditor but quickly moved up into a financial leadership role and has been a CFO of different businesses since 1999. Chambers has been a steady hand on the books of Idera since January 2015.
• Steve Young, Chairman: The founder and Chairman of HGGC became involved with Idera when his venture capital group bought into the company in 2017. During his early years, Young was a professional footballer, succeeding in the NFL for 15 years. After retiring from the sport, he exploited his degree in Finance and Political Science and his Juris Doctorate in law to forge a career in fund management and company incubation. HGGC currently invests in many technology companies.

Locations

The headquarters of Idera, Inc. is located in Austin, Texas. The Idera brand is also based at that location and has another office in Houston, Texas.

Idera acts as a conglomerate rather than as a single business. When it buys a company, it doesn’t integrate it, but just invests, leaving the original company intact. Thus, each acquired division still operates from its own HQ. Idera didn’t move any of its new businesses into its Austin offices.

Target Market and Customer Base

Idera, Inc. targets a diverse market of technology professionals, primarily focusing on enterprises that require database management, application development, DevOps, and IT performance monitoring solutions. Below is an outline of Idera’s target market and customer base:

Target Market

1. Database Administrators (DBAs): Idera’s roots are in providing tools for database management, specifically for Microsoft SQL Server. Idera provides solutions like SQL Diagnostic Manager, SQL Secure, and SQL Safe Backup to help DBAs maintain high database performance, ensure security, and perform backups.
2. Application Developers: With the acquisition of Embarcadero Technologies, Idera gained a strong foothold in the developer community. Tools for this market include integrated development environments (IDEs) and frameworks to build, test, and maintain applications. Idera’s tools, such as Delphi, C++Builder, and RAD Studio, are widely used for this purpose.
3. DevOps Engineers: DevOps teams require automation tools to streamline the development, deployment, and monitoring of applications. Idera’s solutions, such as Travis CI (for continuous integration) and XebiaLabs (for continuous delivery), cater to this market.
4. QA/Test Managers: QA teams need tools for test case management and automation. Solutions like TestRail (for test management) and Ranorex (for test automation) are designed to streamline QA processes.
5. IT Operations and Infrastructure Teams: Idera offers performance monitoring and infrastructure management tools that cater to IT operations teams: system monitoring, server performance, and infrastructure reliability. Products like Uptime Infrastructure Monitor are used by IT professionals to keep critical infrastructure running smoothly.
6. Security and Compliance Officers: Idera provides solutions to help organizations manage security risks and comply with regulations. Tools like SQL Secure help security officers ensure that databases comply with industry standards and security best practices. Kiuwan provides security testing for code, helping developers and security teams integrate security into the software development lifecycle.

Customer Base

Idera’s customer base is broad and diverse, consisting of over 50,000 organizations worldwide. These customers come from various industries, including:

1. Large Enterprises: Many of Idera’s tools are designed for large organizations with complex IT infrastructures.
2. Small and Medium-Sized Businesses (SMBs): The portfolio includes solutions for small and medium-sized businesses that need cost-effective systems.
3. Managed Service Providers (MSPs): MSPs use Idera’s tools to manage the infrastructure and databases of their clients.
4. Technology and Software Development Firms: RAD Studio, Delphi, and TestRail are popular among software developers, QA engineers, and DevOps teams.
5. Public Sector and Government Agencies: Idera serves various government agencies that need secure, compliant, and efficient database management and monitoring solutions.
6. Education and Research Institutions: Educational institutions with extensive database and application development needs, also use Idera’s suite of products.

Idera, Inc. Product Suite

Through acquisitions and organic development, Idera, Inc. has built a portfolio of tools to support IT professionals, developers, database administrators, and DevOps teams. Below is a breakdown of Idera’s product suite, organized by its major focus areas:

1. Database Management Tools

Idera is best known for its robust set of tools designed to help database administrators (DBAs) manage, monitor, and optimize databases, primarily focused on Microsoft SQL Server, but with expanded support for other platforms.

Key Products:

• SQL Diagnostic Manager: Real-time performance monitoring and diagnostics for SQL Server environments. Helps DBAs monitor server performance, troubleshoot bottlenecks, and optimize SQL databases.
• SQL Safe Backup: A backup and recovery tool for SQL Server databases, providing a centralized backup strategy with fast and efficient recovery options.
• SQL Secure: A security auditing tool for SQL Server databases that helps DBAs identify security vulnerabilities, enforce security policies, and ensure compliance.
• SQL Defrag Manager: Automates index defragmentation to improve SQL Server performance and reduce database downtime.
• SQL Compliance Manager: Provides auditing and compliance tools for SQL Server, ensuring adherence to various industry regulations (e.g., HIPAA, SOX).
• ApexSQL: A suite of SQL tools for developers and DBAs that includes source control, data comparison, script deployment, and query execution functionalities.

2. Application Development Tools

Idera expanded into the software development space with its acquisition of Embarcadero Technologies. These tools are used by developers to build, test, and maintain desktop, web, and mobile applications.

Key Products:

• RAD Studio: An integrated development environment (IDE) that supports cross-platform application development for Windows, macOS, iOS, Android, and Linux using Delphi and C++.
• Delphi: A robust programming language and IDE for rapid application development, widely used for building Windows and cross-platform applications.
• C++Builder: A C++ IDE that provides tools for building fast and responsive applications across multiple platforms.
• InterBase: A lightweight, cross-platform SQL database engine embedded in applications for mobile, desktop, and server use.
• Aqua Data Studio: A database-integrated development environment (IDE) for developers working with various database platforms (e.g., SQL Server, Oracle, MySQL, PostgreSQL).

3. DevOps and Continuous Integration Tools

Idera has built a significant presence in the DevOps space through acquisitions, offering solutions for continuous integration, testing, deployment, and monitoring.

Key Products:

• Travis CI: A continuous integration platform that automates testing and deployment for software projects. It is widely used for open-source and enterprise projects.
• XebiaLabs (now part of Digital.ai): Provides tools for continuous delivery and release automation, enabling DevOps teams to manage complex software deployments.
• Assembla: A version control and project management platform that integrates with Git and SVN, helping teams collaborate on software development projects.
• Kiuwan: A static application security testing (SAST) platform that integrates security into the software development lifecycle, enabling DevSecOps teams to identify and fix vulnerabilities in code.

4. Testing and Quality Assurance (QA) Tools

Idera offers tools for test management, test automation, and code security to help QA teams ensure high-quality software releases.

Key Products:

• TestRail: A popular test case management platform that helps QA teams organize and track test cases, manage test runs, and generate reports on testing progress.
• Ranorex: A comprehensive test automation tool for desktop, web, and mobile applications, supporting functional and regression testing.
• Qubole: A testing platform designed for managing large-scale data and machine learning tests, ensuring that data pipelines and ML models work efficiently in production.

5. IT Infrastructure and Performance Monitoring

Idera provides tools to monitor and manage IT infrastructure, ensuring systems perform optimally, and identifying bottlenecks before they become critical.

Key Products:

• Uptime Infrastructure Monitor: A server and network monitoring tool that tracks performance across physical, virtual, and cloud environments.
• CopperEgg: A cloud-based infrastructure monitoring platform that offers real-time server monitoring and alerts.

6. Data Governance and Modeling Tools

Through its acquisitions, Idera has also expanded into data governance, data modeling, and enterprise architecture, helping organizations manage and organize their data more effectively.

Key Products:

• ER/Studio: A data modeling and architecture tool that allows organizations to model, document, and design enterprise databases, data warehouses, and big data platforms.
• WhereScape: A data automation platform that accelerates the design, development, and deployment of data warehouses and other analytics environments.

7. Security and Compliance Tools

Idera’s security solutions help organizations ensure that their databases and applications comply with security best practices and regulatory requirements.

Key Products:

• SQL Secure: Audits SQL Server security settings and provides reports to help organizations comply with security standards such as HIPAA, SOX, and GDPR.
• Kiuwan: Provides code security analysis, integrating with development environments to detect vulnerabilities and ensure applications are secure before deployment.

8. Business Intelligence and Data Visualization

Idera also offers solutions for data visualization and business intelligence (BI), helping organizations make sense of large data sets and build interactive dashboards and reports.

Key Products:

• FusionCharts: A JavaScript charting library that enables developers to build interactive and visually appealing dashboards, reports, and charts for web and mobile applications.
• Yellowfin BI: A BI platform that delivers analytics and data visualization tools for enterprises to make data-driven decisions.

Flagship Product: Idera SQL Diagnostic Manager

Idera SQL Diagnostic Manager is designed to help SQL Server administrators manage, monitor, and optimize SQL Server performance. It is the company’s biggest-selling product. This real-time performance monitoring tool provides insights into server health, identifies bottlenecks, and helps maintain high availability and performance across database environments.

Key Features:

• Real-Time SQL Server Monitoring: Real-time tracking of server performance metrics such as CPU, memory usage, disk activity, and SQL queries.
• Performance Diagnostics & Query Analysis: Tracks slow or long-running queries, waits, and locks that may be degrading performance.
• Comprehensive Alerts and Notifications: Configurable alerts for various performance thresholds, such as CPU spikes, memory usage, or query timeouts.
• Predictive Alerting and Capacity Planning: Predicts future performance bottlenecks by analyzing historical data.
• Cloud and Hybrid Support: Supports on-premises, cloud, and hybrid SQL Server deployments, including Azure SQL Database and Amazon RDS for SQL Server.
• Database Health Checks and Best Practice Analysis: Automatically checks to ensure SQL Servers adhere to performance and security best practices.

SQL Diagnostic Manager helps database administrators maintain a healthy and high-performing SQL Server environment by providing real-time performance monitoring, detailed diagnostics, and predictive analytics. The tool enables DBAs to minimize downtime and maximize the efficiency of their SQL Server instances. SQL Diagnostic Manager also simplifies capacity planning and long-term performance analysis.

Other Notable Products

1. ER/Studio Data Modeling Tools

ER/Studio is a data modeling tool, designed to help organizations manage complex data environments through data architecture, data governance, and database design. It is used by data architects, database administrators (DBAs), and business analysts to model, document, and optimize data systems across different database platforms. ER/Studio supports a wide range of RDBMSs, including SQL Server, Oracle, DB2, and MySQL.

2. SQL Compliance Manager

SQL Compliance Manager is an auditing and compliance tool, designed to track and report on the activities within their SQL Server. It provides real-time monitoring, recording information about database access, data changes, user activity, and security policy violations. The tool covers regulations like HIPAA, SOX, GDPR, and PCI DSS, offering customizable auditing policies and detailed compliance reports.

Spotlight Wrap Up

Idera, Inc. owns so many brands that a review of the company extends into many products that the casual observer would not realize are part of the group. The core Idera brand, however, is still the group’s biggest revenue earner. Of all the products produced by Idera, SQL Diagnostic Manager gets the most attention.

Idera will continue to expand its group through acquisition, increasing its size and growing its asset value, probably at the expense of its annual profit. The earnings strategy of the three private equity funds that own Idera Inc. is not known. However, it is probable that they see a public flotation in the company’s future.