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5 Reasons Application Performance Management Fails

Jonah Kowall

After speaking to thousands of Application Performance Management (APM) users during my time with Gartner, I have seen the following 5 key issues that cause APM failures:

1. Organizational immaturity

The first cause of failure is the silos in many of today’s organizations. There are often too many stakeholders involved in APM decision-making, ranging from application support, server teams, network teams, database teams (DBAs), application developers, and various architects across the organization.

We’re also seeing more non-technical users, such as the business owner of an application interested in seeing usage and performance data on critical Business Transactions within the application. These business users will become a more central user of APM in the future.

It’s critical to identify the primary user of the product, and determine requirements focused on those primary users. Secondary users can have input but should not be the ones driving the key decision points. As products mature, they can sell into multiple areas or even cross sell through teams, but it shouldn’t be the focus of the initial implementation.

2. Ownership

Typically the excitement of an APM solution, the added visibility, and capabilities presented with an implementation provide immense value to operations, application support, and development. The implementation — if you select an easy to implement product — normally proceeds without many issues, and there is a clear owner or stakeholders of the product.

Over time, as roles and business direction changes, often APM loses its key owner. The result of this is that the product isn’t maintained or used day to day. The way to avoid this is to make the executives key stakeholders. As APM and Application Intelligence will become critical to business decision-making, changing what’s often been the fate of older APM products.

3. Application Complexity

APM tools are installed for two reasons. If APM is strategic it’s implemented during development or implementation of a project. The second driver for APM implementation is when the pain threshold gets too high, and something is needed to see the production environment to remediate issues. The lack of understanding or visibility in applications, both old and new, is normally the first benefit. You’ll often hear: “I didn’t know this was connecting to that?”

Issues occur within changing applications for two primary reasons. First, demands of business model changes driven by greater customer demand or higher volumes of data. The second reason for change is feature requests, requiring application changes. These two reasons for change can be distilled down to scale and complexity, making it harder to identify and correct issues (or passing this data to development to make corrective changes to the software).

4. Engineering Skills Required

With yesterday’s APM tools, the implementations were incredibly complex and time consuming. This was due to the amount of tuning and customization enterprises required. Companies which have failed in APM were normally due to having too heavy a services engagement. This has caused the likes of Optier to completely go out of business, and ITOM giants to rethink how they approach the market. Many of these companies even have staff members who would work full time at customer sites to keep the products up and running. These are often seen as benefits to the buyer, but eventually they become burdens.

Applications both in the enterprise and customer worlds have become easy to buy, implement, and show the value of the technology. This has permeated IT products as well. Buyers expect things to be easy and show value quickly. The APM winners today, and for the future build easy to implement products, and refuse to customize them or push a heavy services engagement.

The key is enabling customers, and not offloading the work of using the product or providing staff augmentation. If you are looking at managed services, select the right technology first, and then the managed services provider.

Many legacy APM tools are far too complex, with countless config files and GUI features to tune in order to get value out of the investment. You shouldn’t need to be a senior technologist to get results. Today’s modern tools are easy to understand, and often present information in a way that level-1 operations engineers get value from them.

5. Focus on the wrong thing

Selecting APM technology isn’t just about meeting the needs of your application today, but thinking about the future state of the applications and infrastructures. What is considered experimental and bleeding edge eventually become standard components of traditional enterprise applications. We’ve already seen this happen with PHP, and we’re beginning to see this with other languages. Today you may be a Java shop on VMware, and possibly even a PHP user on LAMP, but in the future you will likely be a node.js shop, possibly running on a public PaaS.

Most organizational leaders have a strategy for both private and public cloud, where areas of business innovation and differentiation tend to be built on public clouds. This is the reason Gartner states that “IT spending on public cloud services is growing more than five times faster than growth in IT spending across all categories.”

Similarly, your organization may not have a large mobile investment today, but I can assure you will in the future. In order to handle these shifts many applications are moving from a single programming language to being composed of multiple languages. These technology shifts are requiring people with new broader skills, or people who can learn new skills quickly. The path towards the full stack developer or IT operations generalist show many are evolving to meet these new challenges to meet business agility requirements.

Regardless whether these proof points or discussions match your organization, the ability to support past investments, existing investments, but most importantly future investments, is critical when selecting APM technologies. Areas of growth and innovation are critical to senior management, hence will provide the most value to the business. These challenges are being addressed by the APM innovators. Keep that in mind when selecting application management technology, keeping in mind the depth and context of the monitoring and analytics.

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5 Reasons Application Performance Management Fails

Jonah Kowall

After speaking to thousands of Application Performance Management (APM) users during my time with Gartner, I have seen the following 5 key issues that cause APM failures:

1. Organizational immaturity

The first cause of failure is the silos in many of today’s organizations. There are often too many stakeholders involved in APM decision-making, ranging from application support, server teams, network teams, database teams (DBAs), application developers, and various architects across the organization.

We’re also seeing more non-technical users, such as the business owner of an application interested in seeing usage and performance data on critical Business Transactions within the application. These business users will become a more central user of APM in the future.

It’s critical to identify the primary user of the product, and determine requirements focused on those primary users. Secondary users can have input but should not be the ones driving the key decision points. As products mature, they can sell into multiple areas or even cross sell through teams, but it shouldn’t be the focus of the initial implementation.

2. Ownership

Typically the excitement of an APM solution, the added visibility, and capabilities presented with an implementation provide immense value to operations, application support, and development. The implementation — if you select an easy to implement product — normally proceeds without many issues, and there is a clear owner or stakeholders of the product.

Over time, as roles and business direction changes, often APM loses its key owner. The result of this is that the product isn’t maintained or used day to day. The way to avoid this is to make the executives key stakeholders. As APM and Application Intelligence will become critical to business decision-making, changing what’s often been the fate of older APM products.

3. Application Complexity

APM tools are installed for two reasons. If APM is strategic it’s implemented during development or implementation of a project. The second driver for APM implementation is when the pain threshold gets too high, and something is needed to see the production environment to remediate issues. The lack of understanding or visibility in applications, both old and new, is normally the first benefit. You’ll often hear: “I didn’t know this was connecting to that?”

Issues occur within changing applications for two primary reasons. First, demands of business model changes driven by greater customer demand or higher volumes of data. The second reason for change is feature requests, requiring application changes. These two reasons for change can be distilled down to scale and complexity, making it harder to identify and correct issues (or passing this data to development to make corrective changes to the software).

4. Engineering Skills Required

With yesterday’s APM tools, the implementations were incredibly complex and time consuming. This was due to the amount of tuning and customization enterprises required. Companies which have failed in APM were normally due to having too heavy a services engagement. This has caused the likes of Optier to completely go out of business, and ITOM giants to rethink how they approach the market. Many of these companies even have staff members who would work full time at customer sites to keep the products up and running. These are often seen as benefits to the buyer, but eventually they become burdens.

Applications both in the enterprise and customer worlds have become easy to buy, implement, and show the value of the technology. This has permeated IT products as well. Buyers expect things to be easy and show value quickly. The APM winners today, and for the future build easy to implement products, and refuse to customize them or push a heavy services engagement.

The key is enabling customers, and not offloading the work of using the product or providing staff augmentation. If you are looking at managed services, select the right technology first, and then the managed services provider.

Many legacy APM tools are far too complex, with countless config files and GUI features to tune in order to get value out of the investment. You shouldn’t need to be a senior technologist to get results. Today’s modern tools are easy to understand, and often present information in a way that level-1 operations engineers get value from them.

5. Focus on the wrong thing

Selecting APM technology isn’t just about meeting the needs of your application today, but thinking about the future state of the applications and infrastructures. What is considered experimental and bleeding edge eventually become standard components of traditional enterprise applications. We’ve already seen this happen with PHP, and we’re beginning to see this with other languages. Today you may be a Java shop on VMware, and possibly even a PHP user on LAMP, but in the future you will likely be a node.js shop, possibly running on a public PaaS.

Most organizational leaders have a strategy for both private and public cloud, where areas of business innovation and differentiation tend to be built on public clouds. This is the reason Gartner states that “IT spending on public cloud services is growing more than five times faster than growth in IT spending across all categories.”

Similarly, your organization may not have a large mobile investment today, but I can assure you will in the future. In order to handle these shifts many applications are moving from a single programming language to being composed of multiple languages. These technology shifts are requiring people with new broader skills, or people who can learn new skills quickly. The path towards the full stack developer or IT operations generalist show many are evolving to meet these new challenges to meet business agility requirements.

Regardless whether these proof points or discussions match your organization, the ability to support past investments, existing investments, but most importantly future investments, is critical when selecting APM technologies. Areas of growth and innovation are critical to senior management, hence will provide the most value to the business. These challenges are being addressed by the APM innovators. Keep that in mind when selecting application management technology, keeping in mind the depth and context of the monitoring and analytics.

Hot Topics

The Latest

I've spent a lot of time in the channel, and one thing I keep coming back to is this: a partner program is only as good as what it looks like in the field. Many programs look great on paper, but when a partner is in front of a customer navigating a complex hybrid environment or trying to make the case for AI-powered observability, the gap between what a vendor promises and what it actually delivers becomes very clear, very fast ...

Enterprises today operate in a real-time environment where uninterrupted access to trusted data has become a baseline expectation for users, applications and automated systems. Traditional DataOps models, built on manual effort and human triage, cannot keep pace with this always active demand. AI agents are emerging as the operational backbone, ensuring consistent data availability, reinforcing trustworthiness and enabling a level of scale that manual processes cannot achieve ...

For decades, trust in the digital workplace rested on familiar signals. We trusted faces on video calls, voices on the phone, and emails that appeared to come from people we knew. These cues felt human and intuitive. They anchored how decisions were made, approvals were granted, and access was authorized. AI-powered deepfakes have quietly broken that model ...

Cloud migration was supposed to be a one-way door. For most enterprises, it turns out it isn't. Cloud data repatriation is a real and growing trend. A new survey ... finds that 89% of organizations plan to expand their on-premises infrastructure footprint over the next two years — and 75% have already moved at least some workloads back from public cloud in the past 24 months. The findings point to a broad rethinking of where data belongs ...

Over the past few years, large language models (LLMs) have revolutionized the software industry. Given their ability to excel at multi-step reasoning, LLMs have helped enterprises streamline workflows and adapt to the unknown. However, employing such models comes with sky-high costs, latency issues, and limited flexibility. In the realm of IT operations, it is generally wiser to employ smaller, domain-specific models instead ...

For years, DevOps teams operated under a simple assumption: collect enough telemetry, and you can find and fix any problem. That assumption is breaking down. Modern enterprises now operate across microservices, hybrid cloud environments, APIs, Kubernetes, and highly automated delivery pipelines. Releases happen continuously, dependencies shift constantly, and failures spread faster than teams can diagnose them ...

New Relic surveyed IT and engineering leaders from the media and entertainment (M&E) sector to understand what's working — and where challenges persist with their observability practices. The findings reveal how M&E organizations are navigating rising platform complexity, audience expectations, and AI-driven change. Below are five takeaways that stand out ...

Let me start with something I've seen play out more times than I can count. A team hits a wall with the cloud. Costs creep up, then spike. Performance starts to feel inconsistent. Someone in finance asks a simple question like "why did this double?" and nobody has a clean answer ... Maybe this isn't the right place for everything. That realization feels like a breakthrough, like you've identified the problem. In reality, you've just identified the starting line ...

In MEAN TIME TO INSIGHT Episode 24, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses network observability tool sprawl ... 

In cloud-native systems, scaling is often as simple as moving a slider. For on-premise databases, the stakes are different. Over-provisioning hardware is expensive. Under-provisioning leads to performance bottlenecks that are difficult to fix once the equipment is in the rack ...