IT connection: Application performance challenges mean millions of dollars lost

By Manufacturing Business Technology Staff July 11, 2008

Application Performance Management: The Life-cycle Approach Brings IT and Business Together , a new benchmark report issued by Boston-based Aberdeen Group , finds that application performance issues are impacting overall corporate revenues by up to 9 percent. Additionally, end-user organizations say these issues affect employee productivity and satisfaction, customer satisfaction, and brand recognition.Around 58 percent of organizations surveyed are unsatisfied with the performance of applications currently in use.”A proactive approach to managing application performance is no longer optional,” claims Bojan Simic, research analyst, Aberdeen. “Organizations may ignore IT department discussions on improving application response times, availability, and Mean Time to Repair, but what can no longer be ignored is the impact that application performance has on some of the key business metrics.”With organizations reporting that application performance issues could impact corporate revenues by an average of $117 million annually, creating a business case for application performance management projects is no longer a problem just for IT management,” Simic continues. “Rolling out new applications is the top IT investment for 2008, and issues with the performance of these applications are significantly impacting some of the metrics that CEOs and CFOs care about the most.”The report says on an annual basis, Best-in-Class companies spend an average of $96,000 more on application performance management solutions as compared to Laggards, while being able to mitigate the risk of losing $117 million annually due to application performance issues. What allowed Best-in-Class organizations to outperform the overwhelming majority of their peers was not the selection of a few capabilities that have the strongest impact on application performance, but instead selecting a mix of capabilities that allow organizations to manage the full life cycle of application performance management. This approach includes deployment of capabilities for predicting, monitoring, analyzing, and optimizing application performance. Download the report.