what are your application performance metrics telling you about business performance?

Measuring the Business Impact of Application Performance

What Are Your Performance Metrics Really Telling You?

© 2015 Riverbed Technology. All rights reserved. 2

Top 10 CIO Concerns for 2016

1. Alignment of IT and the Business

2. Security and Privacy

3. Speed of IT Delivery and Time-to-Market

4. Innovation

5. Business Productivity and Efficiency

6. IT Value Proposition to the Business

7. IT Agility and Flexibility

8. IT Cost Reduction and Controls

9. Business Agility and Flexibility

10. Business Cost Reduction and Controls

Source: 2016 IT Trends Study, Society for Information Management (n=1,218)


1. Alignment of IT and the Business

2. Security and Privacy

3. Speed of IT Delivery and Time-to-Market

4. Innovation

5. Business Productivity and Efficiency

6. IT Value Proposition to the Business

7. IT Agility and Flexibility

8. IT Cost Reduction and Controls

9. Business Agility and Flexibility

10. Business Cost Reduction and Controls

Top 10 CIO Concerns for 2016What Underpins a Majority of These?

Source: 2016 IT Trends Study, Society for Information Management (n=1,218)


Superior performance of business-critical applications


ApplicationPerformance

BusinessPerformance=

In Other Words…


How so?


89% 1.6 hours

When Applications Don’t Perform, Business Suffers

Percentage of executives who say poor enterprise application performance negatively impacts their work1

The average hourly cost of a critical application failure for a large organization2

Minimum amount of business downtime that 59% of the Fortune 500 experience per week3

$500,000 - $1 million

1. Riverbed, “Riverbed Global Application Performance Survey,” November 20152. IDC, “DevOps and the Cost of Downtime: Fortune 1000 Best Practice Metrics Quantified,” Dec. 20143. Vision Solutions, “Assessing the Financial Impact of Downtime,” 2008


When Applications Don’t Perform, Business Is Lost

1

1

1 12 3

1. Forrester, “Realize Practical Application Management, Feb. 20132. Ibid3. The Aberdeen Group, “The Performance of Web Applications: Customers Are Won or Lost in One Second,” May

2015


When Applications Don’t Perform, Brands Are Impacted

Decreased employee morale

Negative impact on brand

Lost clients or customers

Missed critical deadlines

Contract delays

Dissatisfied clients or customers

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

29%

32%

33%

35%

40%

41%

Source: Riverbed Global Application Performance Survey, Nov. 2015, Riverbed (n= 900)

Pitf

alls

of P

oor A

pp P

erfo

rman

ce


But When Apps Perform Optimally, Businesses Experience…

Improved employee morale

Faster delivery of products to market

Improved customer satisfaction

Cost savings

Time savings

Improved employee productivity

0% 10% 20% 30% 40% 50% 60%

31%

33%

43%

47%

50%

51%

Source: Riverbed Global Application Performance Survey, Nov. 2015, Riverbed (n= 900)

Ben

efits

of O

ptim

al A

pp P

erfo

rman

ce


Being able to quantify this relationship between application performance and business performance is important for IT leaders, but it’s also challenging…


The Challenges for IT Leaders Traditional application SLAs don’t directly

translate to business impact– How does an increase in response time affect the number of

customer orders or other volume-based transactions?

64% of organizations still use fragmented approaches to technology monitoring1

– Data is more difficult to aggregate and translate into actionable business intelligence

Pinpointing the most valuable data is difficult– Digital universe doubles every two years, but only 22% of

this data is useful for analysis2

1. Forrester, “Application Performance Management Is Critical To Business Success,” Feb. 2014 2. IDC, “The Digital Universe of Opportunities: Rich Data and the Increasing Value of the Internet of Things,” April 2014

© 2015 Riverbed Technology. All rights reserved. 13© 2015 Riverbed Technology. All rights reserved. 13

What’s IT to Do, Then?

Start speaking the language of business leaders

Eliminate siloed approaches to technology monitoring

Create dashboards to establish transparency and trust


Starter tips:1. Examine how effective the current set of application

metrics are when communicating IT’s performance2. Meet with executives, review business objectives, and

pinpoint business KPIs that align with those goals3. Identify 5-10 apps that have the most influence on those

business objectives4. Create a value mapping between application SLAs and

business KPIs, similar to the image to the right5. Conduct a gap analysis to see if the right technologies

are in place to collect and report relevant data6. Review trending data for one quarter’s time to prove

relationships between business KPIs and app SLAs7. Regularly review reporting strategy to validate metrics,

benchmark performance, and make adjustments

Map the Relationship Between Application SLAs and Business KPIsSpeak the Language of the Business


What to look for:

1. Network performance management (NPM)

2. Application performance management (APM)

3. A unified console that aggregates all NPM and APM metrics into role-relevant dashboards.

Converge Performance Metrics into a Single, Unified PlatformEliminate Siloed Approaches to Technology Monitoring


Considerations when developing dashboards:

1. Stakeholders need to be able to analyze dashboards at a quick glance, within a single screen and a few clicks

2. Provide role-based dashboards to present only the information that is most important to various groups

3. Dashboards should help communicate the value of various IT solutions

Provide Real-time Information Needed for Agile Decision-MakingCreate Dashboards to Establish Transparency and Trust


Download our white paper: http://rvbd.ly/1Q3zO3q

Review our global app performance survey:http://rvbd.ly/1XLJcaX

Contact Riverbed:http://www.riverbed.com/contact/#form

Ready to Learn More?

http://rvbd.ly/1Q3zO3q



http://rvbd.ly/1XLJcaX



http://www.riverbed.com/contact/%23form

http://www.riverbed.com/contact/%23form