IBM acquires Instana, startup formula helped drive growth

Instana is a tech company based in North Rhine-Westphalia that specializes in application performance management. In a very short time, the startup managed to attract investors for its AI-powered software. This success culminated in a multi-million-euro exit at the end of 2020. 

UX&I supported Instana from the very first strategy session. A basic idea was developed into a complex product that meets the specific needs of users, both technically and visually. Even today, the software is still based on its original architecture. “Start-ups like Instana present major challenges for everyone involved. For example, at the beginning, we faced the exciting task of making complicated technical processes understandable and constantly searching for new ways to present them. The fact that we succeeded is evident today in Instana’s success. But there were also the very ‘classic’ milestones that every startup must go through. They’re like a kind of startup formula,” says Patrick Oselka, Managing Director of UX&I. 

This formula outlines three steps for product development: First, the vision is refined, and the complex initial concept is distilled into a common framework. The idea can then be visually represented using a prototype to make it tangible for test users and investors. Finally, the product is developed using an agile approach. These three milestones drive speed: Instana reached over 200 paying customers within 18 months, while also providing natural momentum for the team. Patrick: “Every time you reach a goal, you’re motivated again for the next one. And you know you’re on the right track.” 

Attachments

• Portrait of Patrick Oselka, Managing Director of UX&I (jpg) (JPG, 514 KB)
• Ideation workshop (jpg) (JPG, 638 KB)
• Showcase UX consulting at Instana (landing page)