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APM BOTTOM-LINE BENEFIT: Increased Revenue

Sridhar Iyengar

Today's Business is heavily dependent on IT systems to perform at the best.

For example, an IT component failing in an eCommerce business could result in a shopping cart order failure that in turn results in loss of revenue for that business. If IT is able to proactively detect performance degradation and rectify it before it severely impacts the business, that could not only save loss of revenue and also credibility for the business with its customers.

On the other hand, if IT can ensure the highest level of service, that could result in higher levels of satisfaction for the customer who execute transactions on the IT system and eventually profitability for the business.

The question arises: "How can the business ensure that the applications perform at the optimal level?" This can be done by using 2 key concepts: Application Performance Monitoring (APM) and Service Level Management (SLM).

Application Performance Monitoring deals with the capability to proactively monitor IT application components that determine quality of application services.

SLM deals with the ability to monitor Service Level Agreements (based on KPI such as availability, health) and ensure that the IT team delivers the application service at the quality that has been agreed upon. This allows the business to measure IT service delivery and ensure optimal levels of services that is required to sustain the business.

It is imperative for IT to understand the relationship between business services and the underlying IT components/applications so that the impact of a IT failure/degradation on the business service can be well understood.

Additionally, there has to be SLAs associated with the Business Service. The higher the business service impact, typically higher should be the SLA (and the priority). That will be the expected quality of service from IT. If the business service impacts are not understood, then IT will be unable to deliver IT Services within agreed upon SLA times.

The business service impact for any IT incident helps establish KPIs (such as resolution priority, MTTR, SLA levels, etc.).

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Edge AI is strategically embedded in core IT and infrastructure spending across industries, according to the 2026 Edge AI Survey from ZEDEDA. The research shows that 83% of C-suite and IT executive respondents say edge AI is important to their core business strategy ...

As AI adoption accelerates, operational complexity — not model intelligence — is becoming the primary barrier to reliable AI at scale, according to the State of AI Engineering 2026 from Datadog ... The report highlights a compounding complexity challenge as AI systems scale ... Around 5% of AI model requests fail in production, with nearly 60% of those failures caused by capacity limits ...

For years, production operations teams have treated alert fatigue as a quality-of-life problem: something that makes on-call rotations miserable but isn't considered a direct contributor to outages. That framing doesn't capture how these systems fail, and we now have data to show why. More importantly, it's now clear alert fatigue is a symptom of a deeper issue: production systems have outgrown the current operational approaches ...

I was on a customer call last fall when an enterprise architect said something I haven't been able to shake. Her team had just spent four months trying to swap one AI vendor for another. The original plan said three weeks. "We didn't switch vendors," she told me. "We rebuilt half our integrations and discovered what we'd actually been depending on." Most enterprise leaders don't expect that to be the experience ...

Ask any senior SRE or platform engineer what keeps them up at night, and the answer probably isn't the monitoring tool — it's the data feeding it. The proliferation of APM, observability, and AIOps platforms has created a telemetry sprawl problem that most teams manage reactively rather than architect proactively. Metrics are going to one platform. Traces routed somewhere else. Logs duplicated across multiple backends because nobody wants to be caught without them when something breaks. Every redundant stream costs money ...

80% of respondents agree that the IT role is shifting from operators to orchestrators, according to the 2026 IT Trends Report: The Human Side of Autonomous IT from SolarWinds ...

40% of organizations deploying AI will implement dedicated AI observability tools by 2028 to monitor model performance, bias and outputs, according to Gartner ...

Until AI-powered engineering tools have live visibility of how code behaves at runtime, they cannot be trusted to autonomously ensure reliable systems, according to the State of AI-Powered Engineering Report 2026 report from Lightrun. The report reveals that a major volume of manual work is required when AI-generated code is deployed: 43% of AI-generated code requires manual debugging in production, even after passing QA or staging tests. Furthermore, an average of three manual redeploy cycles are required to verify a single AI-suggested code fix in production ...

Many organizations describe AI as strategic, but they do not manage it strategically. When AI plans are disconnected from strategy, detached from organizational learning, and protected from serious assumptions testing, the problem is no longer technical immaturity; it is a failure of management discipline ... Executives too often tell organizations to "use AI" before they define what AI is supposed to change. The problem deepens in organizations where strategy isn't well articulated in the first place ...

Across the enterprise technology landscape, a quiet crisis is playing out. Organizations have run hundreds, sometimes thousands, of generative AI pilots. Leadership has celebrated the proof of concept (POCs) ... Industry experience points to a sobering reality: only 5-10% of AI POCs that progress to the pilot stage successfully reach scaled production. The remaining 90% fail because the enterprise environment around them was never ready to absorb them, not the AI models ...

APM BOTTOM-LINE BENEFIT: Increased Revenue

Sridhar Iyengar

Today's Business is heavily dependent on IT systems to perform at the best.

For example, an IT component failing in an eCommerce business could result in a shopping cart order failure that in turn results in loss of revenue for that business. If IT is able to proactively detect performance degradation and rectify it before it severely impacts the business, that could not only save loss of revenue and also credibility for the business with its customers.

On the other hand, if IT can ensure the highest level of service, that could result in higher levels of satisfaction for the customer who execute transactions on the IT system and eventually profitability for the business.

The question arises: "How can the business ensure that the applications perform at the optimal level?" This can be done by using 2 key concepts: Application Performance Monitoring (APM) and Service Level Management (SLM).

Application Performance Monitoring deals with the capability to proactively monitor IT application components that determine quality of application services.

SLM deals with the ability to monitor Service Level Agreements (based on KPI such as availability, health) and ensure that the IT team delivers the application service at the quality that has been agreed upon. This allows the business to measure IT service delivery and ensure optimal levels of services that is required to sustain the business.

It is imperative for IT to understand the relationship between business services and the underlying IT components/applications so that the impact of a IT failure/degradation on the business service can be well understood.

Additionally, there has to be SLAs associated with the Business Service. The higher the business service impact, typically higher should be the SLA (and the priority). That will be the expected quality of service from IT. If the business service impacts are not understood, then IT will be unable to deliver IT Services within agreed upon SLA times.

The business service impact for any IT incident helps establish KPIs (such as resolution priority, MTTR, SLA levels, etc.).

Hot Topics

The Latest

Edge AI is strategically embedded in core IT and infrastructure spending across industries, according to the 2026 Edge AI Survey from ZEDEDA. The research shows that 83% of C-suite and IT executive respondents say edge AI is important to their core business strategy ...

As AI adoption accelerates, operational complexity — not model intelligence — is becoming the primary barrier to reliable AI at scale, according to the State of AI Engineering 2026 from Datadog ... The report highlights a compounding complexity challenge as AI systems scale ... Around 5% of AI model requests fail in production, with nearly 60% of those failures caused by capacity limits ...

For years, production operations teams have treated alert fatigue as a quality-of-life problem: something that makes on-call rotations miserable but isn't considered a direct contributor to outages. That framing doesn't capture how these systems fail, and we now have data to show why. More importantly, it's now clear alert fatigue is a symptom of a deeper issue: production systems have outgrown the current operational approaches ...

I was on a customer call last fall when an enterprise architect said something I haven't been able to shake. Her team had just spent four months trying to swap one AI vendor for another. The original plan said three weeks. "We didn't switch vendors," she told me. "We rebuilt half our integrations and discovered what we'd actually been depending on." Most enterprise leaders don't expect that to be the experience ...

Ask any senior SRE or platform engineer what keeps them up at night, and the answer probably isn't the monitoring tool — it's the data feeding it. The proliferation of APM, observability, and AIOps platforms has created a telemetry sprawl problem that most teams manage reactively rather than architect proactively. Metrics are going to one platform. Traces routed somewhere else. Logs duplicated across multiple backends because nobody wants to be caught without them when something breaks. Every redundant stream costs money ...

80% of respondents agree that the IT role is shifting from operators to orchestrators, according to the 2026 IT Trends Report: The Human Side of Autonomous IT from SolarWinds ...

40% of organizations deploying AI will implement dedicated AI observability tools by 2028 to monitor model performance, bias and outputs, according to Gartner ...

Until AI-powered engineering tools have live visibility of how code behaves at runtime, they cannot be trusted to autonomously ensure reliable systems, according to the State of AI-Powered Engineering Report 2026 report from Lightrun. The report reveals that a major volume of manual work is required when AI-generated code is deployed: 43% of AI-generated code requires manual debugging in production, even after passing QA or staging tests. Furthermore, an average of three manual redeploy cycles are required to verify a single AI-suggested code fix in production ...

Many organizations describe AI as strategic, but they do not manage it strategically. When AI plans are disconnected from strategy, detached from organizational learning, and protected from serious assumptions testing, the problem is no longer technical immaturity; it is a failure of management discipline ... Executives too often tell organizations to "use AI" before they define what AI is supposed to change. The problem deepens in organizations where strategy isn't well articulated in the first place ...

Across the enterprise technology landscape, a quiet crisis is playing out. Organizations have run hundreds, sometimes thousands, of generative AI pilots. Leadership has celebrated the proof of concept (POCs) ... Industry experience points to a sobering reality: only 5-10% of AI POCs that progress to the pilot stage successfully reach scaled production. The remaining 90% fail because the enterprise environment around them was never ready to absorb them, not the AI models ...