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IT and Business Alignment: Has APM Evolved to Fulfill the Promise of BSM? Part 1

Sridhar Iyengar

Over the years, IT systems management has evolved dramatically. What started as monitoring just the network infrastructure via ping/telnet/SNMP has transformed into monitoring and managing multi-tier, geographically distributed IT infrastructures and applications deployed on physical and virtual environments as well as private, public and hybrid cloud environments.

Around a decade ago, Application Performance Management (APM) emerged as an independent category within systems management. APM enables one to measure and eventually ensure availability, response time, and integrity of critical application services used by the business, i.e., the consumers of the IT application services. A couple of years later, another IT management technology called Business Service Management (BSM) emerged to align IT with business objectives.

Now, interest in BSM is resurging as companies strive to make their IT departments more responsive to their business needs. Simultaneously, APM has also emerged stronger in the last few years to encompass a broader scope in IT management. This two-article series looks at the evolution of BSM and APM, the key drivers for both technologies, and how we're seeing them converge to fulfill the promise of aligning IT with business.

Enter BSM

In the last decade, IT teams were often left in the dark whenever a problem in the IT infrastructure led to the unavailability or poor responsiveness of an IT application service used by the organization's business process. The problem? The lack of mature IT processes and tools meant IT teams rarely had any insight into the impact of the problem on the business.

As a result, IT was often criticized for being not aligned with the needs of the business. This led to the coining of the term "business service" which was different from an IT service. A business service was defined as an IT service that was provided by the IT team to the business and that had an intrinsic financial value associated with it.

Any impact to a business service always had a financial implication, and it was all the C-level executives cared about. This led to the pursuit of the lofty goal of identifying, measuring and ensuring availability and response time of business services, aka Business Service Management (BSM).

BSM dynamically linked business-focused IT services to the underlying IT infrastructure. It was what the CIOs and IT heads of the time wanted to hear, and the marketeers served up BSM to them as the holy grail of IT.

BSM promised:

- Alignment of IT and business: BSM was typically sold to the C-level executives as "The Tool" - a magic pill that could automatically help them align IT with business. Numerous productivity numbers and terms such as "time to gather business insights" were thrown up to justify BSM purchases.

- Faster time to resolve problems: BSM users were touted to be an order of magnitude faster in isolating and diagnosing problems compared to those not using it.

- Easier implementation: Not only could BSM improve IT productivity and business profitability, it was also supposed to be a breeze to set up and automatically configure.

- Better TCO and ROI: IT operations would be able to reactively and proactively determine where they should be spending their time to best impact the business. The cost savings in faster troubleshooting and increased business profitability would justify the investment in BSM.

- Power and control for business owners: Business owners were promised visibility and control into what was happening and how it could be fixed.

BSM Oversold and Under Delivered

As organizations started gradually buying and using BSM products, they realized that those products required a lot of manual effort and complex procedures to work. It was not the plug-and-play solution that was originally promoted.

BSM was a term coined to fill the gap between businesses' needs and IT capabilities. When business failed to see the value in BSM, the BSM promises fell flat.

So why didn't BSM live up to expectations? Probably because:

- BSM did not truly reflect the financial impact of IT on business.

- BSM did not have automated, real-time updates to reflect the current status of IT. As IT changed, BSM systems would either have older data or require manual update of the status.

- There was no easy and automated way to capture all the dependencies of a business process on the underlying IT components. Capturing such details was complex and often inaccurate, and it required a lot of effort.

- BSM was probably ahead of its time. BSM-required technologies such as automated discovery and dependency mapping and end-user monitoring were not sufficiently matured at that time.

As originally brought to market, BSM solutions failed to deliver the coveted alignment of IT and business. However, the initial failure did little to discourage organizations from pursuing their goal.

In the second article of this two-part series, we will take a look at the rising popularity of APM and the resurgence of BSM as companies continue to seek alignment.

Read Part 2 of this article: IT and Business Alignment: Has APM Evolved to Fulfill the Promise of BSM? Part 2

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IT and Business Alignment: Has APM Evolved to Fulfill the Promise of BSM? Part 1

Sridhar Iyengar

Over the years, IT systems management has evolved dramatically. What started as monitoring just the network infrastructure via ping/telnet/SNMP has transformed into monitoring and managing multi-tier, geographically distributed IT infrastructures and applications deployed on physical and virtual environments as well as private, public and hybrid cloud environments.

Around a decade ago, Application Performance Management (APM) emerged as an independent category within systems management. APM enables one to measure and eventually ensure availability, response time, and integrity of critical application services used by the business, i.e., the consumers of the IT application services. A couple of years later, another IT management technology called Business Service Management (BSM) emerged to align IT with business objectives.

Now, interest in BSM is resurging as companies strive to make their IT departments more responsive to their business needs. Simultaneously, APM has also emerged stronger in the last few years to encompass a broader scope in IT management. This two-article series looks at the evolution of BSM and APM, the key drivers for both technologies, and how we're seeing them converge to fulfill the promise of aligning IT with business.

Enter BSM

In the last decade, IT teams were often left in the dark whenever a problem in the IT infrastructure led to the unavailability or poor responsiveness of an IT application service used by the organization's business process. The problem? The lack of mature IT processes and tools meant IT teams rarely had any insight into the impact of the problem on the business.

As a result, IT was often criticized for being not aligned with the needs of the business. This led to the coining of the term "business service" which was different from an IT service. A business service was defined as an IT service that was provided by the IT team to the business and that had an intrinsic financial value associated with it.

Any impact to a business service always had a financial implication, and it was all the C-level executives cared about. This led to the pursuit of the lofty goal of identifying, measuring and ensuring availability and response time of business services, aka Business Service Management (BSM).

BSM dynamically linked business-focused IT services to the underlying IT infrastructure. It was what the CIOs and IT heads of the time wanted to hear, and the marketeers served up BSM to them as the holy grail of IT.

BSM promised:

- Alignment of IT and business: BSM was typically sold to the C-level executives as "The Tool" - a magic pill that could automatically help them align IT with business. Numerous productivity numbers and terms such as "time to gather business insights" were thrown up to justify BSM purchases.

- Faster time to resolve problems: BSM users were touted to be an order of magnitude faster in isolating and diagnosing problems compared to those not using it.

- Easier implementation: Not only could BSM improve IT productivity and business profitability, it was also supposed to be a breeze to set up and automatically configure.

- Better TCO and ROI: IT operations would be able to reactively and proactively determine where they should be spending their time to best impact the business. The cost savings in faster troubleshooting and increased business profitability would justify the investment in BSM.

- Power and control for business owners: Business owners were promised visibility and control into what was happening and how it could be fixed.

BSM Oversold and Under Delivered

As organizations started gradually buying and using BSM products, they realized that those products required a lot of manual effort and complex procedures to work. It was not the plug-and-play solution that was originally promoted.

BSM was a term coined to fill the gap between businesses' needs and IT capabilities. When business failed to see the value in BSM, the BSM promises fell flat.

So why didn't BSM live up to expectations? Probably because:

- BSM did not truly reflect the financial impact of IT on business.

- BSM did not have automated, real-time updates to reflect the current status of IT. As IT changed, BSM systems would either have older data or require manual update of the status.

- There was no easy and automated way to capture all the dependencies of a business process on the underlying IT components. Capturing such details was complex and often inaccurate, and it required a lot of effort.

- BSM was probably ahead of its time. BSM-required technologies such as automated discovery and dependency mapping and end-user monitoring were not sufficiently matured at that time.

As originally brought to market, BSM solutions failed to deliver the coveted alignment of IT and business. However, the initial failure did little to discourage organizations from pursuing their goal.

In the second article of this two-part series, we will take a look at the rising popularity of APM and the resurgence of BSM as companies continue to seek alignment.

Read Part 2 of this article: IT and Business Alignment: Has APM Evolved to Fulfill the Promise of BSM? Part 2

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 ...