SaaS startup New Relic has received an additional $10 million in venture capital for its application performance management (APM) offering that targets both data centers and the cloud. Tenaya Capital and Allen & Co. led the Series C round, with existing investors Benchmark Capital and Trinity Ventures also chipping in. The round brings New Relic’s total investment to $20 million, proving the importance of management and monitoring as companies adopt cloud computing, as well as the power of the SaaS 2.0 model.

What separates New Relic from other APM providers is that its RPM service monitors live software from the inside instead of simply monitoring external web application metrics. RPM comes in five editions, ranging from the free Lite version, which gives basic monitoring capabilities, up to the Enterprise version, which provides a range of capabilities to discover and cure performance issues. According to founder Lew Cirne, the internal view helps customers identify problems early and avoid “the thorniest issues,” citing the recent Foursquare outage as a problem that might have been avoided if the company could have been proactive in addressing the problem.