Tuesday, November 20, 2018

6 Types of ROI for APM (Application Performance Management Tools)

It has been said that almost all companies are now a software company in some way or another. This means that the reliability and performance of your software applications are critical to your success. Unfortunately, many application performance management (APM) tools have been very expensive and only target large companies.

The price of the APM for 20 servers can vary from US $ 500 to US $ 6,000 per month. Some providers also require that they be paid annually. It is common to hear from customers who may experience our product, Retrace, for a few hundred dollars a month or to pay another supplier of US $ 25,000 and who are stuck in an annual contract.

APM solutions can be accessible and have an invaluable return on investment (ROI) if they are used to their full potential. In this article, we will discuss some of the main benefits of APM and how they provide excellent ROI.

Examples of APM ROI and other benefits

1. Increase in developer productivity

Software developers are expensive. They are also a highly limited resource in today's economy. It is important to keep them working on innovating new products that can expand their businesses. The development tools that make them more productive are very valuable.

Solving production problems can be very difficult and delayed. APM tools are designed to help developers quickly identify application problems.
If the APM can save its developers for a few hours a month, it's easy to see how quickly it pays. The ZeroTurnaround developer's productivity report showed that the average developer spends at least a few hours a week firefighting production problems.

2. Prevention of application problems

The sooner an application problem is identified and corrected in the development life cycle, the less time and money will be necessary. In a perfect world, we would all like to find all the problems of the application while the developers are writing the code or the quality control.

Tools like Prefix and Retrace can do exactly that. The prefix is free and the Retrace is only US $ 15 per month per server in quality control. It is very difficult not to justify these costs if it can help identify problems before they reach production.

It is easy to understand that finding errors when writing code or in quality control is much easier to fix than in production. A simple production error can also cause tens or hundreds of support problems with your customers. The last thing you want to do is overload your support or sales teams with the management of boring customers.

3. The cost of downtime

Another day I ordered pizza at the Pizza Hut site. If your website was slow or down for any reason, you could easily order pizza from a dozen other companies. Every minute that your site is down has a big impact on your sales for the day and your bottom line.
Delta Airlines had an interruption of 5 hours in August 2016. Problems with the computer forced us to cancel about 2,000 flights. They reported that it cost them 150 million dollars. British Airways and Southwest also had disruptions last year that caused them a lot of money.

Proactive application monitoring can help identify problems before they become worse. To find slow SQL queries to identify high volume requests that must be optimized.
Being able to quickly identify the root cause of a problem can drastically reduce the average repair time (MTTR).

4. Performance as a resource

Keep in mind that performance is also a feature of your application. Users love software fast. This creates a larger overall feel for your product. It can be difficult to quantify, but it helps in conversions and customer retention.

Slow performance can affect your profitability. Amazon found every 100ms of latency cost them 1% in sales. We can all relate to trying to buy something online and stop because it was taking too long.

Children may be screaming, it's time to go to dinner or some other reason. Sometimes, we tell ourselves that we will see later when we have more time. Many times we do not remember or spend our money on something else. "I almost bought one of those" is the last thing any retailer wants to hear.

One of our clients offers small loans for their clients online. Your site was taking 10 to 15 seconds to load and I could not understand why. They managed to use the Retrace to identify that the caching did not work correctly.After applying the fix, they were immediately able to see a substantial increase in business.
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5. Reducing Hosting Costs


APM products are very useful for measuring the performance of your applications and help identify opportunities for improvement. A SQL query fits here, some code refactoring, and you can reduce your hosting costs through some optimizations.
For example, in Stackify, we had an application that worked on about 20 servers. Using the Retrace to identify possible performance optimizations, we managed to refact some codes and reduce the number of servers by 50%. This simple change saved us $ 2,000 a month.

APM tools can help you understand how your applications use SQL databases, Elasticsearch, Web services and much more. We've heard all the time from customers who had no idea how many SQL queries the application runs or how slow the queries were. A bit of performance tuning around application dependencies can improve overall performance and allow you to reduce these dependencies.

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6. SLA requirements

Many B2B companies have service level agreements (SLAs) with their partners. These agreements generally have clear written penalties if the software is not online and works properly.

A brief interruption of Amazon AWS in February 2017 will cost you 2% of your total income due to the SLA credits. A small interruption of 5 hours would probably cost millions in revenue. Their interruptions caused problems for many customers, including Apple, Adobe and Netflix.

Amazon would have to reimburse 10-30% in service credits. Many providers offer service credits based on how poorly the SLA has been lost. Here is an example of a table that defines how an infraction in the SLA is treated.

Conclusion

In this article, we discuss some of the ways in which APM tools provide very high ROI. They can help with developer productivity, avoid problems with applications, reduce hosting costs, optimize performance and avoid costly downtime.

More importantly, APM tools can help you sleep at night.They help you proactively monitor the performance of your applications 24 hours a day. They are also there when you need to get in and quickly solve a problem.

The price and functionality of APM tools vary widely. See our list of APM's top 10 critical resources. You may also want to read about the accessibility of APM products and how they are accessible to smaller companies.

Application monitoring tools do not have to be too expensive. The goal of Stackify from the first day was to create an affordable and holistic suite of application monitoring tools. Retrace combines lightweight code profile, application errors, logs, metrics and much more in an easy to use tool for developers.




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