Jyoti Bansal merges startups Harness and Traceable into a $5 billion company

Jyoti Bansal, who gained significant recognition after selling his prior software company, AppDynamics, to Cisco for $3.7 billion, took a bold step in consolidating his two latest ventures, Harness and Traceable. Since 2020, Bansal has operated both companies as co-founder and CEO, driving innovation in the cloud software space. He noted that while these companies initially served different market segments, recent shifts in purchasing behavior among technology leaders necessitated a merger to streamline operations and better serve collective clients. This consolidation is anticipated to create a robust new entity valued at approximately $5 billion, projecting around $250 million in revenue for the fiscal year. Bansal acknowledged feeling unfulfilled after the sale of AppDynamics, expressing a desire to complete what he began in the tech space. He has also sought to expand his influence by establishing Big Labs, a startup incubator that focuses on exploring innovative ideas and promoting tech entrepreneurship. The operational strategy will initially allow Traceable to function as a unit under the larger umbrella of Harness. This strategic alignment capitalizes on the intertwined customer bases, with reports indicating that 70% of Traceable's key clients are also customers of Harness. This decision aims to enhance resources and focus investment to ensure greater operational efficiency and customer service. Industry experts, including Harrick from Institutional Venture Partners, have voiced support for this direction, citing Bansal's exceptional executive capabilities in managing multiple tech companies. By focusing on a unified company instead of overseeing two separate entities, Bansal can maximize the potential for both firms to succeed in a rapidly evolving market landscape characterized by increasing competition and shifting client expectations.