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Redefining APM

Ishan Mukherjee
New Relic

Application performance monitoring (APM) has historically involved a lot of hunting and educated guesswork. If performance deteriorated, monitoring teams would investigate factors like CPU, RAM and storage availability in hopes of identifying the culprit. This often led to dead ends because the root of performance problems was somewhere else. Disparate data points were often displayed on multiple screens, requiring operators to correlate information manually. And problems that weren't easily identified by infrastructure monitoring were nearly impossible to detect.

APM is being redefined by innovations in performance monitoring and a new perspective that places user experience at the center of the equation

Now, APM is being redefined by innovations in performance monitoring and a new perspective that places user experience at the center of the equation. Instead of requiring operators to constantly query the system about its status, modern observability solutions continually display the state of the system as part of normal operations. Visualizations enable operators to see problems quickly, in some cases even before they manifest themselves in a degraded user experience. In short, traditional APM is reactive while modern approaches are proactive and predictive.

There is a clear demand for APM's insights. According to New Relic's 2023 Observability Forecast, more than half (53%) of survey respondents had deployed APM, a 17% increase year-over-year. Nine in 10 (89%) expected to deploy APM by 2026. The monitoring is working. More than two-thirds (69%) of those who currently deploy APM said their organization's MTTR improved since adopting observability, including 35% who said it improved by 25% or more.

Observability solutions now peer into the deepest recesses of applications, uncovering every factor that may affect performance. These include such new cloud-native variables as the health of software containers, tool- and language-specific characteristics, connectors to external data sources, custom integrations, and application program interfaces.

A Complete Picture

The latest generation of APM tools can trace an intricate web of interconnected services to unmask the threads of communication that tie them together. Auto-discovery identifies new applications and code deployments and automatically incorporates them into the fabric of services being monitored. Machine learning observes the factors that affect the performance of individual applications over time and learns to look for changes that presage a slowdown or outage.

A critical feature of today's solutions is an integrated dashboard that enables operators to view such useful troubleshooting aids as distributed traces — which track interactions within complex systems — alongside APM telemetry. They look for significant incidents that influence performance and continually aggregate log information into clusters that allow patterns to be observed without the need for administrators to search or scan through thousands of log entries. Coordinated timestamps correlate changes in performance with possible causal factors and enable operators to drill down on anomalies for problem detection and resolution.

The result is a view of application performance from both above and below. At the center of the operator view are the metrics that are most critical to the user experience, such as response and load times. Alongside that are summaries of alerts, deployments, service levels and vulnerabilities, which are the most critical factors in diagnosing performance problems.

If a spike in response times is detected, operators can scroll down to look at elements of infrastructure, dependencies, databases, containers and other services. By viewing distributed traces alongside APM telemetry, they can quickly identify the root cause of service issues and navigate to the relevant trace to further investigate the problem. They can even drill into the application code to spot problematic changes and see when they were introduced.

This doesn't mean traditional metrics are no longer needed. They are still a great way to identify common infrastructure problems such as bad memory or a corrupt database table. The difference with redefined APM is that the customer experience is at the center and all the factors that affect it are tied to that crucial metric. The latest solutions also enable rich integrations with third-party solutions as well as connections to the vast collection of APIs, software development kits and tools available in the OpenTelemetry observability framework.

Organizations don't have to worry about their APM solutions becoming obsolete but can focus on what really matters: Delighting users.

Ishan Mukherjee is SVP of Growth at New Relic

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In live financial environments, capital markets software cannot pause for rebuilds. New capabilities are introduced as stacked technology layers to meet evolving demands while systems remain active, data keeps moving, and controls stay intact. AI is no exception, and its opportunities are significant: accelerated decision cycles, compressed manual workflows, and more effective operations across complex environments. The constraint isn't the models themselves, but the architectural environments they enter ...

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

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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 ...

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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.

Redefining APM

Ishan Mukherjee
New Relic

Application performance monitoring (APM) has historically involved a lot of hunting and educated guesswork. If performance deteriorated, monitoring teams would investigate factors like CPU, RAM and storage availability in hopes of identifying the culprit. This often led to dead ends because the root of performance problems was somewhere else. Disparate data points were often displayed on multiple screens, requiring operators to correlate information manually. And problems that weren't easily identified by infrastructure monitoring were nearly impossible to detect.

APM is being redefined by innovations in performance monitoring and a new perspective that places user experience at the center of the equation

Now, APM is being redefined by innovations in performance monitoring and a new perspective that places user experience at the center of the equation. Instead of requiring operators to constantly query the system about its status, modern observability solutions continually display the state of the system as part of normal operations. Visualizations enable operators to see problems quickly, in some cases even before they manifest themselves in a degraded user experience. In short, traditional APM is reactive while modern approaches are proactive and predictive.

There is a clear demand for APM's insights. According to New Relic's 2023 Observability Forecast, more than half (53%) of survey respondents had deployed APM, a 17% increase year-over-year. Nine in 10 (89%) expected to deploy APM by 2026. The monitoring is working. More than two-thirds (69%) of those who currently deploy APM said their organization's MTTR improved since adopting observability, including 35% who said it improved by 25% or more.

Observability solutions now peer into the deepest recesses of applications, uncovering every factor that may affect performance. These include such new cloud-native variables as the health of software containers, tool- and language-specific characteristics, connectors to external data sources, custom integrations, and application program interfaces.

A Complete Picture

The latest generation of APM tools can trace an intricate web of interconnected services to unmask the threads of communication that tie them together. Auto-discovery identifies new applications and code deployments and automatically incorporates them into the fabric of services being monitored. Machine learning observes the factors that affect the performance of individual applications over time and learns to look for changes that presage a slowdown or outage.

A critical feature of today's solutions is an integrated dashboard that enables operators to view such useful troubleshooting aids as distributed traces — which track interactions within complex systems — alongside APM telemetry. They look for significant incidents that influence performance and continually aggregate log information into clusters that allow patterns to be observed without the need for administrators to search or scan through thousands of log entries. Coordinated timestamps correlate changes in performance with possible causal factors and enable operators to drill down on anomalies for problem detection and resolution.

The result is a view of application performance from both above and below. At the center of the operator view are the metrics that are most critical to the user experience, such as response and load times. Alongside that are summaries of alerts, deployments, service levels and vulnerabilities, which are the most critical factors in diagnosing performance problems.

If a spike in response times is detected, operators can scroll down to look at elements of infrastructure, dependencies, databases, containers and other services. By viewing distributed traces alongside APM telemetry, they can quickly identify the root cause of service issues and navigate to the relevant trace to further investigate the problem. They can even drill into the application code to spot problematic changes and see when they were introduced.

This doesn't mean traditional metrics are no longer needed. They are still a great way to identify common infrastructure problems such as bad memory or a corrupt database table. The difference with redefined APM is that the customer experience is at the center and all the factors that affect it are tied to that crucial metric. The latest solutions also enable rich integrations with third-party solutions as well as connections to the vast collection of APIs, software development kits and tools available in the OpenTelemetry observability framework.

Organizations don't have to worry about their APM solutions becoming obsolete but can focus on what really matters: Delighting users.

Ishan Mukherjee is SVP of Growth at New Relic

Hot Topics

The Latest

In live financial environments, capital markets software cannot pause for rebuilds. New capabilities are introduced as stacked technology layers to meet evolving demands while systems remain active, data keeps moving, and controls stay intact. AI is no exception, and its opportunities are significant: accelerated decision cycles, compressed manual workflows, and more effective operations across complex environments. The constraint isn't the models themselves, but the architectural environments they enter ...

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

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.