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Integrated Performance Management for Physical, Virtual and Cloud Infrastructure

Arun Balachandran

Today's businesses increasingly use software applications that run in a wide variety of environments, everything from physical to virtual to cloud. As organizations look for ways to reduce costs, improve efficiency, and increase scalability, cloud computing and virtualization are playing a vital part in their IT strategies. However, these new technologies also present new challenges for organizations in the areas of application monitoring and application performance.

Traditional NSM Tools Don’t Work

Traditionally, most organizations have gone for a silo-based approach for application performance management. However, as more organizations adopt and experience the advantages of virtualization and cloud computing, they are realizing that this model is no longer practical.

Web-based applications are becoming the standard for both internal and external services. Most traditional tools monitor each component of an application or transaction individually, by picking up various segments of transactions without providing a unified view of the entire transaction flow. For example, the database tool tracks only the databases or the web services tool tracks only the web services, etc. without showing how they are interconnected within the complex infrastructure. So when an application slowdown occurs, these tools might not be able to pinpoint the root cause of the problem as they do not have end-to-end visibility into the transaction.

Moreover, the increasing proliferation of virtualization and cloud applications has added another layer of complexity to application performance management. Most businesses are finding out that their conventional monitoring tools do not have the necessary operational intelligence for monitoring complex virtual or cloud infrastructure. This is because the traditional approach focuses too much on the physical infrastructure alone.

Purchasing multiple performance management tools to monitor such different and constantly changing IT environments is not feasible either. These point tools introduce additional overhead, lack adequate integration and cannot perform in-depth application performance management.


A New Strategy for Monitoring in Physical, Virtual and Cloud Environments

So, how do you monitor application performance issues in a heterogeneous IT environment that is constantly evolving? What you need is a monitoring strategy that combines proactive monitoring of a hybrid set of applications and servers across physical, virtual and cloud environments.

An ideal application performance management strategy should include deep dive application component monitoring spanning across application servers, databases, servers, ERPs, middleware, web transactions, virtual machines, cloud services, etc. The IT team should have no difficulty in troubleshooting performance bottlenecks or tracking end user experience from across the world. They need the right kind of end-to-end visibility to see what’s working and what’s not across their IT environments.

Today’s IT Managers are expected to understand how specific IT services are affecting business operations, so the organization’s IT strategy should facilitate this to happen. The IT team must be able to troubleshoot problems quickly and effectively with minimal reliance on manual processes and guesswork. At the same time, the teams must be able to monitor compliance with service level agreements and ensure a high quality end-user experience.

By re-inventing their application performance management strategy, IT departments can be confident their services meet business goals.

Arun Balachandran is Sr. Market Analyst for ManageEngine.

Related Links:

www.manageengine.com

Arun Balachandran, Sr. Market Analyst for ManageEngine, Joins the APMdigest Vendor Forum

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The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...

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Integrated Performance Management for Physical, Virtual and Cloud Infrastructure

Arun Balachandran

Today's businesses increasingly use software applications that run in a wide variety of environments, everything from physical to virtual to cloud. As organizations look for ways to reduce costs, improve efficiency, and increase scalability, cloud computing and virtualization are playing a vital part in their IT strategies. However, these new technologies also present new challenges for organizations in the areas of application monitoring and application performance.

Traditional NSM Tools Don’t Work

Traditionally, most organizations have gone for a silo-based approach for application performance management. However, as more organizations adopt and experience the advantages of virtualization and cloud computing, they are realizing that this model is no longer practical.

Web-based applications are becoming the standard for both internal and external services. Most traditional tools monitor each component of an application or transaction individually, by picking up various segments of transactions without providing a unified view of the entire transaction flow. For example, the database tool tracks only the databases or the web services tool tracks only the web services, etc. without showing how they are interconnected within the complex infrastructure. So when an application slowdown occurs, these tools might not be able to pinpoint the root cause of the problem as they do not have end-to-end visibility into the transaction.

Moreover, the increasing proliferation of virtualization and cloud applications has added another layer of complexity to application performance management. Most businesses are finding out that their conventional monitoring tools do not have the necessary operational intelligence for monitoring complex virtual or cloud infrastructure. This is because the traditional approach focuses too much on the physical infrastructure alone.

Purchasing multiple performance management tools to monitor such different and constantly changing IT environments is not feasible either. These point tools introduce additional overhead, lack adequate integration and cannot perform in-depth application performance management.


A New Strategy for Monitoring in Physical, Virtual and Cloud Environments

So, how do you monitor application performance issues in a heterogeneous IT environment that is constantly evolving? What you need is a monitoring strategy that combines proactive monitoring of a hybrid set of applications and servers across physical, virtual and cloud environments.

An ideal application performance management strategy should include deep dive application component monitoring spanning across application servers, databases, servers, ERPs, middleware, web transactions, virtual machines, cloud services, etc. The IT team should have no difficulty in troubleshooting performance bottlenecks or tracking end user experience from across the world. They need the right kind of end-to-end visibility to see what’s working and what’s not across their IT environments.

Today’s IT Managers are expected to understand how specific IT services are affecting business operations, so the organization’s IT strategy should facilitate this to happen. The IT team must be able to troubleshoot problems quickly and effectively with minimal reliance on manual processes and guesswork. At the same time, the teams must be able to monitor compliance with service level agreements and ensure a high quality end-user experience.

By re-inventing their application performance management strategy, IT departments can be confident their services meet business goals.

Arun Balachandran is Sr. Market Analyst for ManageEngine.

Related Links:

www.manageengine.com

Arun Balachandran, Sr. Market Analyst for ManageEngine, Joins the APMdigest Vendor Forum

Hot Topics

The Latest

In MEAN TIME TO INSIGHT Episode 23, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the NetOps labor shortage ... 

Technology management is evolving, and in turn, so is the scope of FinOps. The FinOps Foundation recently updated their mission statement from "advancing the people who manage the value of cloud" to "advancing the people who manage the value of technology." This seemingly small change solidifies a larger evolution: FinOps practitioners have organically expanded to be focused on more than just cloud cost optimization. Today, FinOps teams are largely — and quickly — expanding their job descriptions, evolving into a critical function for managing the full value of technology ...

Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...

The gap is widening between what teams spend on observability tools and the value they receive amid surging data volumes and budget pressures, according to The Breaking Point for Observability Leaders, a report from Imply ...