Rally Software Doubles Subscription Revenue for Fourth Consecutive Year

Agile ALM leader increases customer base by 70 percent, bringing user count to 54,000 in 50 countries

BOULDER, Colo., February 2, 2009 - Rally Software Development Corp.®, the leader in Agile application lifecycle management (ALM), today announced it has doubled its subscription revenue for the fourth consecutive year and increased its customer base by 70% in 2008. The company is poised to continue its growth in 2009 as it delivers the cost-cutting benefits of Agile practices and on-demand ALM tooling to software and corporate development organizations during the current economic crisis.

In addition to doubling its revenue and expanding its customer base during 2008, Rally also:

  • Solidified its industry leadership position with a third consecutive Jolt Product Excellence award, the software industry's equivalent of the Oscar® award
  • Successfully launched the first programmable Internet platform for Agile ALM to connect disparate role-based tools and share real-time information across the idea-to-deployment life cycle
  • Was named one of the "Best Companies to Work for in Colorado" for the third year in a row
  • Closed a $16.85 million Series C round of financing with Mohr Davidow Ventures (MDV) and existing backers Boulder Ventures, Mobius Venture Capital and Vista Ventures
  • Participated in a report by QSM Associates that concluded Agile organizations that rely on Rally's products and services are 50% faster to market and 25% more productive than industry averages

"While our continued growth has helped us mature into an established Agile ALM leader, we still have the same fire that drove us to start Rally in 2002," said Tim Miller, Rally's CEO. "Our passion for helping companies lean their development organizations and create better software faster is evident in every release and every customer success. This passion, and our desire to see our customers gain market share during this economic downturn, will continue to motivate us throughout 2009."

Proven Cost Reductions and Agile Success with Rally Solutions

Thanks to Rally's award-winning lineup of Agile ALM solutions, Rally customers experienced their own share of success in 2008. According to an August 2008 study conducted by QSM Associates titled "The Agile Impact Report: Proven Performance Metrics from the Agile Enterprise," Rally's Agile customers who participated in the study saw an average improvement of 50 percent in their time-to-market and a 25 percent increase in their teams' productivity as compared to industry averages. With a 70% increase in its customer base in 2008, Rally now has more than 1,500 customers with 54,000 users across 50 countries.

The First Programmable Internet Platform for Agile ALM

Rally bolstered its lineup of award-winning Agile ALM solutions with six product releases in 2008. These releases included the August debut of the first programmable Internet platform for Agile lifecycle management. By delivering a platform-as-a-service (PaaS) architecture specifically for software lifecycle management, Rally is able to provide software-driven organizations with a programmable platform that extends the Rally application, connects disparate role-based tools and shares Rally data and views with other applications and web portals. 

Additional capabilities and features included in Rally's 2008 releases include:

  • New enterprise-ready integrations with products from traditional ALM vendors, including IBM®, Microsoft® and HP®, help drive incremental and successful Agile adoption for organizations of all sizes.
  • Enhancements to Rally Quality Manager help enterprises pull testing forward and provide teams with a single source of information for software quality throughout the development lifecycle.
  • Rally's one-click install makes it easy to add any mashup from the growing Rally Mashup Catalog on Agile Commons
  • New product management and support management solutions leverage customer relationship management (CRM) systems to help organizations close the feedback loops between development teams and users, ensuring development priorities are aligned with the highest value opportunities.

"Even with the tough economic climate, Rally is poised to thrive in 2009," added Miller. "The fact that we help development organizations lower their costs and increase their velocity is a winning combination. Plus our SaaS platform and Agile cadence lets us respond to new customers needs in a few weeks. This faster pace positions us for continued growth even when other vendors are hibernating."

About Rally

Rally is the leader in Agile application lifecycle management (ALM) dedicated to making leaner development organizations that respond faster to changing customer needs. According to a study by QSM Associates, teams that rely on Rally's Agile lifecycle management products and services are 50% faster to market and 25% more productive than industry averages. Rally's products were honored with three consecutive Jolt Product Excellence Awards (the software industry's equivalent of the Oscar® award) in 2006, 2007 and 2008. The company's end-to-end solutions for Agile development also include Agile University, the largest source for Agile training, and Agile Commons, the largest collaborative Web 2.0 community dedicated to advancing software agility. As of January 15, 2009, Rally supports 1,500 corporate customers, 33,000 projects and 54,000 users in 50 countries. For more information, visit www.rallydev.com.

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Press Contact: Anne Greenhaw
303-565-2832
anne@rallydev.com