I D C T E C H N O L O G Y S P O T L I G H T

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1 I D C T E C H N O L O G Y S P O T L I G H T AP M S a a S and An a l yt i c s S t e p U p t o Meet the N e e d s o f M odern Ap p l i c a t i o n s, M o b i le Users, a n d H yb r i d C l o ud Ar c h i t e c t u r e s April 2014 Adapted from Worldwide Application Performance Management Software 2012 Vendor Shares by Mary Johnston Turner, IDC # Sponsored by IBM As more business activities move online and modern applications become more loosely coupled and distributed, DevOps teams are embracing continuous software delivery methods that demand detailed, real-time analysis across all aspects of mobile, cloud, and on-premise environments. The increasing availability of application performance management (APM) SaaS and analytics is accelerating the pace of industry transformation by providing more organizations with cost-effective, easy-to-deploy APM solutions that quickly provide end-to-end insight about code and transaction performance, user experience, and cross-tier dependencies spanning physical, virtual, cloud, and mobile infrastructure. This Technology Spotlight examines the critical role that SaaS and analytics are playing in the transformation of the APM market. The paper also considers the impact that IBM's recently introduced IBM Performance Management (SaaS) and IBM IT Operations Analytics offerings will have on the APM market. Mobility, DevOps, Cloud, and Analytics Transform APM Priorities The combined forces of mobility, DevOps, continuous delivery, cloud architectures, and big data analytics are transforming almost every aspect of IT management, monitoring, and operations. IDC refers to these trends collectively as the 3rd Platform a new era of IT that moves away from static client/server architectures and lengthy application development cycles by embracing the large-scale consumerization of business IT and empowering end users with on-demand, instant access to a wide range of applications and services, regardless of whether they opt to access them via a smartphone, a tablet, or a traditional desktop. IDC expects that spending on 3rd Platform products and services will represent 29% of IT spending and drive 89% of IT spending growth in By 2020, roughly 50% of IT spending and almost 100% of IT spending growth will be driven by the 3rd Platform. For IT organizations charged with ensuring that customers, partners, and employees have 24 x 7 access to internal applications and external retail, customer service, and other online business services, the need for real-time monitoring and analysis of application performance and end-user experience has never been higher. As more and more organizations look to increase customer engagement and opt for "mobile first" application rollouts, the business risk associated with application downtime and poor end-user performance grows. Yet, many organizations lack sufficient insight into the performance of production applications because they have not yet updated their APM strategies to support the needs of the 3rd Platform. Historically, most organizations that invested in APM solutions limited their use to a few highly mission-critical applications, such as those used to drive core banking or reservations systems. Early generations of APM software and services were costly to procure and complex to deploy. IDC 1682

2 They required significant staff expertise to design models and manage testing that delivered meaningful results. Often, solutions that were able to dig deeply into code-level errors also introduced significant overhead into the application's runtime performance, which meant IT teams limited the use of APM solutions to analyzing production faults on an as-needed basis rather than a continuous basis. They also lost insight into historical trends and were unable to track anomalies over time. Synthetic testing was used to measure external performance but could not always provide the level of deep inspection needed to identify complex operational dependencies. In the end, while highly sophisticated organizations benefited from APM, many organizations made little or no use of it because it was too expensive and time consuming for them to get useful information that directly improved business performance. As an alternative, many relied on easier-to-implement infrastructure performance monitoring solutions as a proxy for the performance of the applications the infrastructure supported. While not perfect, this strategy was adequate for many organizations when applications and middleware were tightly coupled to static datacenter infrastructure. This situation is changing rapidly, however, as application environments become more dynamic and distributed and enabled by virtualized and cloud resources. IDC's research shows that as IT decision makers gain more experience with cloud, they quickly recognize the need for significantly better analytics and application performance monitoring, including cloud service monitoring, end-user experience monitoring, capacity planning, and improved visualization and analytics (see Figure 1). F i g u r e 1 Top 10 New Management Software Purchases Driven by Cloud over the Next Three Years Capacity planning and analytics Advanced virtual server management tools Application performance management and monitoring Workflow orchestration and task automation Cloud service catalog Public cloud service-level monitoring tools Automated workload migration and optimization End-user experience monitoring Business service management console Enhanced visualization and analytics (% of respondents) n = 150 Note: Multiple responses were allowed. Source: IDC's IT Management QuickPoll, IDC

3 These same decision makers consistently tell IDC that they need unified solutions that span traditional and emerging architectures and improve IT and end-user productivity. They also want solutions that are easy to deploy and that offer graphical reporting, intuitive query capabilities, and advanced analytics. Benefits of APM SaaS and Analytics The needs of modern applications, mobile users, and cloud services increasingly dominate APM purchase priorities. Buyers are becoming more diverse and demanding, and important user groups now include not only enterprise IT operations teams but also application developers, DevOps leaders, and line-of-business analysts and executives. SaaS-delivered application performance monitoring and analytics services are emerging as important choices for organizations that need cost-effective, easy-to-deploy APM options to help optimize mobile, cloud, and traditional applications. These services are experiencing a period of rapid innovation and growth as traditional synthetic monitoring services are supplemented with SaaS-enabled real user monitoring (RUM), mobile app and native mobile browser monitoring, advanced analytics, and deep dive application dependency mapping capabilities. The most advanced SaaS APM services provide end-to-end visibility and analytics across "born on the cloud" applications, traditional complex enterprise environments, and hybrid applications and leverage existing APM and infrastructure monitoring agents, data warehouses, processes, and infrastructure to enable users to move seamlessly between SaaS and on-premise deployment options. IDC recommends that customers of all sizes seriously evaluate SaaS-enabled APM monitoring and analytics solutions when determining how to best support their maturing APM requirements. The following factors should be considered: Scalability and implementation Ease of deployment across a wide range of existing infrastructure, applications, and services Ability to scale up in terms of numbers and diversity of users, devices, and transactions Support for in-house and public cloud resources as well as more traditional environments if required Plug-and-play integrations with a wide range of data sources and formats across on-premise and cloud resources Ability to support modern and legacy environments User productivity and ease of use Ease of use in terms of how quickly the full range of users can master the service's reporting, query, visualization, and analytics features Role-based interfaces and out-of-the-box reports and workflows for IT operations, development, and business users Ability to integrate with existing IT operations workflows and tooling to ease the transition in a DevOps adoption cycle State-of-the-art graphics and visualization Built-in contextual help and support to enable more do-it-yourself training and problem resolution Natural language search and queries across structured and unstructured data sources 2014 IDC 3

4 Advanced analytics and reporting Built-in advanced, predictive analytics and search capabilities enabled by intuitive query and reporting Ability to access and analyze current and historical structured and unstructured monitoring data from existing data warehouses Support for standard protocols and open APIs for access to a broad range of monitoring data Self-learning algorithms that save users from manually maintaining models Solutions that offer scalability, effective user interfaces, and advanced analytics are most likely to be able to evolve with the needs of organizations over time. Buyers need to carefully evaluate offerings in terms of both current and emerging requirements and consider the requirements of both initial users and other roles that may want to take advantage of APM in the future. Many customers may start with fairly limited implementations, but they need to expand the scale and scope of APM usage over time as the mix of applications monitored evolves. APM SaaS and analytics solutions frequently meet many of these requirements and deliver a number of benefits, including: Rapid time to value often delivering usable information and insight in a matter of hours or days The ability to scale spending to match business priorities and to rapidly expand the range of monitored applications as business needs dictate Minimal implementation and training costs thanks to the self-service nature of SaaS, intuitive user interfaces, and built-in self-help resources Greater productivity from IT staff due to less downtime and less training needed Improved end-to-end service levels and end-user productivity and better business performance because of faster problem identification, root-cause analysis, and problem remediation While initially focused on the needs of modern languages as well as Web and mobile applications, SaaSdelivered APM and analytics services are increasingly capable of providing robust support to traditional, on-premise client/server applications via unified interfaces, search engines, and reporting frameworks. Considering IBM Performance Management (SaaS) and IBM IT Operations Analytics IBM, which ranked number 1 in terms of revenue in IDC's 2012 APM vendor shares analysis, has recently expanded its APM and analytics portfolio with the launch of the following integrated solutions: IBM Monitoring (SaaS) and IBM Application Performance Management (SaaS) offer application, middleware, database, real user transaction, and infrastructure visibility and discovery across on-premise and cloud-based applications, including modern, mobile, and legacy environments. IBM Application Diagnostics (SaaS) provides application diagnostics to the code level to help find the root cause, not just the symptoms, of performance issues throughout the application life cycle. IT Operations Analytics - Predictive Insights leverages IBM's behavioral learning big data technology capabilities to provide both historical and predictive real-time analysis of end-to-end application performance. The cognitive capabilities help identify and prevent issues before they impact end users. IBM IT Operations Analytics - Log Analysis collects, normalizes, compares, and searches log data from a wide range of traditional and cloud-based log file systems and other sources to quickly pinpoint root cause, which saves time and increases application availability IDC

5 These services take advantage of the recently released IBM Service Engage Systems Management as a Service platform, which provides a role-based, user-friendly graphical interface for monitoring and querying the services (see Figure 2). F i g u r e 2 IBM Performance Management (SaaS) Graphical Interface Source: IBM, 2014 The guiding principle underlying IBM Service Engage is self-service system management. The platform currently offers customers access to the IBM Performance Management (SaaS) portfolio as well as SaaS versions of IBM SmartCloud Control Desk, IBM Workload Automation, and IBM Maximo Asset Management. The integrated, intuitive graphical user interface leads users through the steps and processes needed to accomplish the designated system management tasks. The site provides extensive self-paced training videos and online tutorials and invites potential customers to explore the site and the individual applications on their own IDC 5

6 Extensive built-in content and easy-to-use natural language query and search tools across multiple unstructured and structured monitoring sources, log files, and technical documentation are provided to enable faster insight and more rapid problem resolution. Behavioral learning techniques automatically map the relationships between current and historical structured and unstructured monitoring data collected from IBM and third-party monitoring data warehouses, standard protocols, and open APIs. This avoids reliance on manual design of application models and thresholds to detect anomalies since the service's built-in discovery and analytics tools do the heavy lifting automatically. IBM systems management software customers, who have traditionally dealt with complex software installations and time-consuming software updates and maintenance requirements, now have the availability of a user-friendly self-service experience, which signals that IBM's SaaS solutions have been designed with user productivity in mind. Challenges IBM has traditionally been known for providing very robust on-premise APM solutions designed to fulfill the needs of large, technically savvy organizations that rely on traditional development languages and architectures. IBM Performance Management (SaaS) and IBM IT Operations Analytics challenge the conventional wisdom by offering customers of all sizes cost-effective, easy-to-deploy, and easy-to-use services that support modern cloud and mobile applications. To effectively compete in the APM SaaS market, IBM will need to gain traction with a broad range of practitioners and demonstrate how they can benefit from this new approach to APM. IBM recognizes these challenges and is offering potential customers a free, full-featured 30-day trial to test-drive the new SaaS solutions. Conclusion Business and application development and innovation coupled with broad based adoption of 3rd Platform technologies, including virtualization, mobility, big data, and cloud, have created dynamic business and IT environments that require always-available application performance insight and advanced analytics. Development teams, IT operations, and business analysts need real-time data about end-to-end user experience, business transactions, and cross-tier software and infrastructure dependencies to support operational needs and continuous development initiatives. APM SaaS and analytics will play an important role in improving service levels and business ability across legacy and modern applications. IT and business decision makers who have not previously considered APM SaaS and analytics solutions are likely to be pleasantly surprised at the extent to which these solutions can reduce cost, simplify implementation, promote user productivity, and reduce business risk across an ever-widening range of applications and platforms. A B O U T T H I S P U B L I C A T I ON This publication was produced by IDC Custom Solutions. The opinion, analysis, and research results presented herein are drawn from more detailed research and analysis independently conducted and published by IDC, unless specific vendor sponsorship is noted. IDC Custom Solutions makes IDC content available in a wide range of formats for distribution by various companies. A license to distribute IDC content does not imply endorsement of or opinion about the licensee. C O P Y R I G H T A N D R E S T R I C T I O N S Any IDC information or reference to IDC that is to be used in advertising, press releases, or promotional materials requires prior written approval from IDC. For permission requests, contact the Custom Solutions information line at or Translation and/or localization of this document requires an additional license from IDC. For more information on IDC, visit For more information on IDC Custom Solutions, visit Global Headquarters: 5 Speen Street Framingham, MA USA P F IDC

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