subject: Measuring Roi In Application Performance Management [print this page] Application performance management is a performance testing process that puts emphasis on checking the monitoring the performance of software in relation to its value in business. The performance refers to how quick the information reaches the user or how efficient the transactions are completed through a network, web service or application. As the needs become more complex, the role played by the network or the application also gets bigger and bigger. Any glitches on these ends of the process will magnify and result to losses for the company.
Gauging ROI
Computing the returns of investment is not quite black and white as every organization or business is different. But you could have an educated estimate of the losses by asking the critical question: if my system is down for an x number of days, how much will I lose per hour? The losses pertain to the labour costs, potential income, operational expenses, etc. You cant really ask your employees to forego with their salaries just because your system is down. Then you will incur additional costs in overtime or external hires as you employ experts to fix your system. Subjecting your software, network and web application to a regular load test will prevent the above scenario from happening.
Minimal Trouble
Bringing in experts to improve your system will not take much more time off your current operations, but the value to your business is substantial. A business with perfectly running system will avoid vulnerability and exposure to crashes and downtimes. Eliminating the risk by 50 percenta rather conservative estimatewill immediately increase your profit margins.
The Performance Testing process will also allow the business not to overdo the engineering infrastructure resulting to insufficient bandwidth resources. Theres a lot of spillage in the networking applications eating up as much as 2/3 of the total IT budget without the company even knowing about it. One of the most common mistakes companies commit is to upgrade network capabilities even when its unnecessary.
Reducing redundancies
Through application performance management tools, you can cut down if not totally eliminate redundancies in tools and software application. One of the most efficient uses of the load test process is eradicating the non-working channel service units or data service units since the application management system is already addressing these needs. It goes without saying that this will immediately redound to savings in leasing and maintenance costs.
