SolarWinds announced the acquisition of Librato, a San Francisco-based Cloud monitoring company, for a cash purchase price of $40 million.

This addition to the SolarWinds family, on the heels of the Pingdom acquisition in 2014, represents the latest step in the company’s efforts to offer solutions to monitor and manage Cloud-based applications and infrastructure. This new technology platform will enable the Company, in the future, to extend and connect performance management capabilities from on-premise IT infrastructure to modern, Cloud-based application environments.

In the rapidly emerging Cloud era, complex technologies, along with dynamic infrastructure and application architectures, are creating new challenges in developing and managing the availability of business-critical applications.

SolarWinds’ overall vision is to help IT Pros, DevOps managers, developers, website and web application owners to manage the performance of all things IT in a hybrid world, ensuring a seamless experience for all end-users.

Librato currently enables full-stack performance monitoring of infrastructure and applications on public clouds such as AWS and Heroku, or in a company’s own data centers using a rich set of OSS data collection agents and instrumentation libraries for a variety of technologies and languages such as StatsD, collectd, Rails, Ruby, Python, Node.js and Java.

Librato also offers the unique ability to monitor and alert on unlimited metrics from hundreds of sources with second precision, correlate and analyze them to produce actionable results.

Through the strength of its product offering, Librato has earned the trust of some of the leading Internet-based brands, such as Airbnb, Stitch Fix, MOZ, NextDoor and Heroku.

SolarWinds’ Pingdom is dedicated to making the web faster and more reliable by enabling monitoring, alerting and troubleshooting of websites and web applications, regardless of size, where they are in the world, and what device they use.

SolarWinds plans to bring these companies, Pingdom and Librato, under a new brand, SolarWinds Cloud.

The new brand will be dedicated to providing a unique and complete solution designed to provide visibility from the “outside in” (Web Performance Management) and the “inside out” (Cloud Infrastructure Management).

“As we evaluate the growth of the business-critical application, we see three ‘horizons’ of application deployment that require robust performance management – on-premise IT, IT as a Service, and IT in the Cloud,” said Kevin Thompson, president and CEO, SolarWinds. “We expect that the requirement to manage existing on-premise infrastructure will continue, but will now be coupled with the need to manage the performance of infrastructure and applications either fully or partially deployed in private and public clouds. As more and more businesses move aspects of their environments to Cloud-based deployment models, we believe we are the right company, with the right product set, to help manage infrastructure performance.”

“When we started talking with SolarWinds, it became clear that we share a common vision,” said Fred van den Bosch, CEO and co-founder of Librato. “We have built one of the industry’s most powerful hosted monitoring platforms with the flexibility to adapt to any use case. This creates a unique opportunity with SolarWinds’ extensive range of infrastructure management products. By joining forces, we expect to be able to continue our journey at an accelerated pace.”

“We look forward to having the Librato team and technology as a part of our organization, as we expand into the Cloud monitoring and management space. And, we will continue to give users the ability to solve a specific management problem or use a combination of integrated products to get a top to bottom view of the application environment and the supporting infrastructure whether on-premise or in the Cloud,” continued Thompson.