DevOps Deeper Dive: IPO Frenzy Heralds Consolidation

Author(s): Joel Martin

While each of these software companies addresses fundamentally different IT requirements, they are all tapping into a massive amount of liquidity now available, as investors dump the stocks of companies in other sectors that have been adversely impacted by the economic downturn brought on by the COVID-19 pandemic.

In fact, the reason all these IPOs appear to be occurring all at once now is the plans to go public that many software companies had earlier this year were delayed by the onset of the pandemic. The backlog for potential IPOs is already staggering. Currently there are more than 400 private startup companies with valuations in excess of $1 billion, which according to the financial research firm CB Insights officially makes them “unicorns.” Familiar names of software companies on that list include GitLab, Docker Inc., HashiCorp, Snyk, Postman, OutSystems, Digital Ocean, Auth0, Redis Labs, Databricks, Collabra, Cohesity, Tanium, Rubrik, SentinelOne, Illumio, Netskope and Kaseya.

The reasons IT organizations should pay attention to these IPOs are twofold. The first is that it signals the company now has ready access to a stream of investment dollars required to fund ongoing innovation, said Scott Bickley, principal research director at Info-Tech Research Group.

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