NAPM Investment: Why the Value Extends Far Beyond the Network
July 23, 2020

Sergio Bea
Accedian

Share this

Over the last decade, the public cloud has completely transformed enterprise IT, allowing for more agility, flexibility and scalability, and creating new business and technology opportunities. It has, however, also placed incremental burden on IT teams.

The role of the IT department was once manageable — straightforward tasks such as computer desktop support, installing and configuring hardware and software, and monitoring and maintaining systems and servers were commonplace. But as a result of digital transformation and the adoption of new and emerging technologies, IT teams are now responsible for driving business strategy and cost savings. With all of the new responsibilities, it's not surprising that we've seen new disciplines emerge, such as NetOps, DevOps, SecOps and DevSecOps.

At the same time, as the point-person for overseeing IT teams, the role of the CIO has expanded — now leading everything from the adoption of new technology stacks to the management of customer experience. In a world where every customer engagement point can make or break brand loyalty, it's more important than ever for CIOs to adopt a digital-first strategy. This includes implementing the right processes, procedures and technologies that ensure optimal performance of networks and applications.

Networks and applications drive the efficiency of business processes and the experience of customers, and subsequently, they drive revenue and profitability for organizations. But, according to IDG, over 75% of IT organizations still suffer from degraded business applications.

Network and Application Performance Management (NAPM) technology provides visibility into performance issues, empowering CIOs and IT teams with the ability to quickly identify and resolve problems before they impact the end user experience. According to a recent study from Accedian and the Centre for Economics and Business Research (CEBR), the technology also offers many business and economic benefits to IT teams far beyond its role in performance, with huge boosts to the overall economy, but with an immediate impact on an organization's employee productivity.

The Impacts of NAPM Investment

It's common for many IT teams to focus on a specific scope of responsibility – whether it's the network, systems, cloud, application or database. NAPM technology provides teams with end-to-end performance visibility, proactively delivering actionable insights to detect and fix issues impacting business productivity.

In fact, when NAPM technology is deployed, Accedian's research found there was an economy-wide increase in productivity among IT workers (as much as a 7.7% boost in productivity), which translates to more than $18.9 billion added to the U.S. economy by 2024. To put this into perspective, that's over 50% of the entire economy of the state of Vermont. If anything, these figures are conservative, as this study was carried out pre-COVID-19 when workers were not as reliant on the network.

When looking at industry-specific data, IT, telecoms and communications services experience the greatest benefits from NAPM technology. Across this sector, IT worker productivity contributes $13.3 billion of value to the general economy. And even beyond this increase, NAPM in the sector contributes a further $1.5 billion in reduced network downtime — meaning the financial consequences associated with network outages are significantly mitigated. But that's not to say this is the only industry where NAPM offers big benefits. A boost in IT productivity in the finance and insurance industries, for example, contributes $4.2 billion of total economic general value add. Retail comes in with a comparatively small boost of $200 million, but with high competition among retailers who are increasingly relying on online revenue, this number is still significant.

Productivity isn't the only benefit that the research found from NAPM technology adoption. The benefits cascade across entire industries, greatly affecting cybersecurity and uplifting the overall economy. The study found a massive reduction in data breach-related fines by as much as $157 million by 2024. Overall, it has the potential to add as much as $32.7 billion to the overall U.S. economy by 2024, representing a 0.13% increase in forecasted GDP.

Your Network and the New Normal

The COVID-19 pandemic has shown us how important network and application performance really is, as we are now reliant on it for everything from work to school to shopping for everyday necessities. This makes network uptime all the more necessary. CIOs and IT teams must understand the true importance of network performance and rise to the occasion, taking the network into consideration when configuring organizational technology stacks.

Sergio Bea is VP Global Enterprise & Channel Sales at Accedian
Share this

The Latest

August 04, 2020

Business leaders around the world are comfortable and optimistic about the broad scale shift toward remote work, according to the Riverbed Future of Work Global Survey 2020 that included 700 business decision makers, however findings also indicate the vast majority of organizations were not well prepared when the COVID-19 pandemic began ...

August 03, 2020

APMdigest and The Field CTO joined forces to launch the AI+ITOPS Podcast. The mission of the podcast is to discuss the struggles faced by ITOps — such as digital transformation and the need to keep IT services "always on" — and explore how AI/ML, AIOps, APM and other ITOps and DevOps technologies can help. Episode 1 features guest Dennis Drogseth, VP at Enterprise Management Associates (EMA) ...

July 30, 2020

One of the most frustrating experiences for website visitors is a slow, unresponsive website. Worst-case scenario, a web bounce causes prospects to permanently bounce from your company. In an effort to help companies improve web performance, Google launched the Web Vitals initiative in May and announced three new search engine ranking factors ...

July 29, 2020

Organizations have benefited from the use of modern applications to adapt and maintain agility and reliability during the COVID-19 pandemic, according to new research by VMware. The global study also reveals improved perceptions of alignment across app developers, IT and business decision makers as they collaborate to help their organizations operate amid the pandemic ...

July 28, 2020

According to The State of ITSM in the COVID-19 Pandemic, a survey by ManageEngine, 72% of IT professionals affirm ITSM's continued effectiveness even in remote work scenarios. However, only one in two organizations have a bring your own device (BYOD) policy to support continued productivity in new remote work environments ...

July 27, 2020

Many remote employees must access a corporate private network from home to continue business as usual. Organizations are turning to virtual private networks (VPN) as never before to keep remote workers connected to critical information and tools. To protect sensitive data and network bandwidth, however, companies must secure and control that network access such as by incorporating digital certificates into their cybersecurity strategy. Follow these five VPN best practices for secure remote worker access ...

July 23, 2020

The role of the IT department was once manageable — straightforward tasks such as computer desktop support, installing and configuring hardware and software, and monitoring and maintaining systems and servers were commonplace. But as a result of digital transformation and the adoption of new and emerging technologies, IT teams are now responsible for driving business strategy and cost savings. With all of the new responsibilities, it's not surprising that we've seen new disciplines emerge, such as NetOps, DevOps, SecOps and DevSecOps ...

July 22, 2020

How does one acquire skills at the level appropriate to ones' self? Not by reading tomes at various levels; I have tried that and often understand every paragraph I read but still fail to grasp the subject. Sound familiar? It dawned on me that it was better to read a few small articles on the subject, maybe more than once, and eventually you should hit that "Eureka" moment when the topic slips into place. What follows is what I learned about learning; over many decades in IT ...

July 21, 2020

One byproduct of COVID-19-imposed stay-at-home mandates is an unprecedented reliance on digital services for everything from grocery shopping and food delivery to video conferencing and workflow automation. And it's impacting both consumers of those digital services and the IT operations professionals responsible for delivering them ...

July 20, 2020

OpenTelemetry is a project within the Cloud Native Computing Foundation (CNCF) that has gathered contributors and supporters far and wide, becoming one of the most active projects found in open source today. In fact, the collaboration that OpenTelemetry has developed is pretty amazing ...