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The Performance Gap: Application Performance Still Not Meeting Business Needs

Steve Brar

A new survey revealed a major performance gap between the needs of business and IT’s current ability to deliver – 98% of executives agree that optimal enterprise application performance is critical to achieving optimal business performance. And yet, 89% of executives say the poor performance of enterprise applications has negatively impacted their work, and 58% say it impacts their work at least weekly, according to the Riverbed Global Application Performance Survey 2015. This performance gap is causing a series of problems for companies, from lost revenue and customers to lower morale to negative impact on brand image.

Companies universally agree that business performance relies on application performance. And yet 9 out of 10 organizations suffer from poor performance on a regular basis.

One cause of this performance gap is the move to hybrid IT. Migrating apps to the cloud brings agility and cost benefits, but, with other apps still on-premises, it also brings complexity. With apps, data and users literally everywhere, the work of optimizing and delivering great app performance has gotten much tougher for IT organizations. But you can’t control what you can’t see. And in order to close the performance gap, having a clear line of sight into how the apps are performing – and how the end user experience is being impacted – has also become a business imperative.

Survey respondents specified their top three business benefits of optimal application performance versus the negative impact of poorly performing applications:

Benefits of Optimal App Performance

■ Improved employee productivity (51%)

■ Time savings (50%)

■ Cost savings (47%)

■ Improved customer satisfaction (43%)

■ Faster delivery of products to market (33%)

■ Improved employee morale (31%)

Pitfalls of Poor App Performance

■ Dissatisfied clients or customers (41%)

■ Contract delays (40%)

■ Missed a critical deadline (35%)

■ Lost clients or customers (33%)

■ Negative impact on brand (32%)

■ Decreased employee morale (29%)

The survey found that executives would be willing to sacrifice a lot for applications to work at peak performance at all times. In fact, 33% would give up their full lunch break. They would also give up a portion of their program budget (32%), caffeine (29%), and even chocolate (27%).

Given the universally recognized importance of optimal application performance, why is it so difficult for IT to deliver?

Globally, 71% of respondents say they have frequently felt “in the dark” about why their enterprise applications are running slowly, spotlighting a disconnect between IT teams and business executives. And outside the Americas region, that number grows even larger at 76% in EMEA and 75% across Asia.

Troublingly, executives can contribute to the problem as they try to work around it: 37% of respondents say they have used unsupported apps when corporate apps run slowly or stop working altogether, thus adding to infrastructure complexity with more “shadow IT.” Others have expressed frustration to colleagues (34%), taken an extended lunch (29%), used slow or down apps as an excuse for missing a deadline (26%), and even left work early (26%).

Cloud Computing Benefits Business – But Also Adds Complexity

Migrating apps to the cloud has delivered benefits to the business, but also some challenges.

Nearly all (96%) of respondents use cloud-based enterprise applications in their work, 84% say their company’s use of cloud-based enterprise applications will increase over the next two years. Executives identified the benefits of cloud-based enterprise apps as increased flexibility (58%), increased productivity (53%), cost savings (46%), increased agility (41%), and increased collaboration (40%).

That’s the good news about cloud apps. The bad news is that hybrid IT contributes to the performance gap. There is an increased difficulty in getting end-to-end visibility into the complex, hybrid IT architectures that result from the use of both cloud and on-premises apps.

83% of respondents say they believe trouble-shooting application performance issues is more difficult in a hybrid IT environment. In fact, according to a survey by Forrester[1], the majority of companies (51%) say that application complexity is now their primary obstacle to mastering application performance. On average, respondents estimate it takes 7 hours for serious app problems to be completely resolved.

In summary, business executives overwhelmingly agree that application performance is critical to business performance and driving results, yet the vast majority are impacted by poor app performance, creating a performance gap. At the same time, business executives are leveraging the power of cloud-based applications and hybrid networks to elevate productivity and create happier, more loyal customers and employees. However, cloud and hybrid environments add complexity and application performance challenges that can also negatively impact business operations, and too often executives feel “in the dark” as to why poor app performance is happening and how to stop it. To deliver superior application performance in today’s hybrid environments, enterprises need a comprehensive solution that provides end-to-end application visibility, optimization and control.

Survey Methodology: The Riverbed Global Application Performance Survey 2015 is the result of a custom online survey by Wakefield Research of 900 business executives at companies with $500 million or more in revenue. “Executives” are defined as those manager-level equivalent or above. Research was conducted in October 2015 across eight countries: US, Brazil, UK, France, Germany, China, Australia, and India. Among the 900 respondents, 200 were in the US, with 100 in each remaining country.

Steve Brar is Director of Platform & Solutions Marketing at Riverbed Technology.

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The Performance Gap: Application Performance Still Not Meeting Business Needs

Steve Brar

A new survey revealed a major performance gap between the needs of business and IT’s current ability to deliver – 98% of executives agree that optimal enterprise application performance is critical to achieving optimal business performance. And yet, 89% of executives say the poor performance of enterprise applications has negatively impacted their work, and 58% say it impacts their work at least weekly, according to the Riverbed Global Application Performance Survey 2015. This performance gap is causing a series of problems for companies, from lost revenue and customers to lower morale to negative impact on brand image.

Companies universally agree that business performance relies on application performance. And yet 9 out of 10 organizations suffer from poor performance on a regular basis.

One cause of this performance gap is the move to hybrid IT. Migrating apps to the cloud brings agility and cost benefits, but, with other apps still on-premises, it also brings complexity. With apps, data and users literally everywhere, the work of optimizing and delivering great app performance has gotten much tougher for IT organizations. But you can’t control what you can’t see. And in order to close the performance gap, having a clear line of sight into how the apps are performing – and how the end user experience is being impacted – has also become a business imperative.

Survey respondents specified their top three business benefits of optimal application performance versus the negative impact of poorly performing applications:

Benefits of Optimal App Performance

■ Improved employee productivity (51%)

■ Time savings (50%)

■ Cost savings (47%)

■ Improved customer satisfaction (43%)

■ Faster delivery of products to market (33%)

■ Improved employee morale (31%)

Pitfalls of Poor App Performance

■ Dissatisfied clients or customers (41%)

■ Contract delays (40%)

■ Missed a critical deadline (35%)

■ Lost clients or customers (33%)

■ Negative impact on brand (32%)

■ Decreased employee morale (29%)

The survey found that executives would be willing to sacrifice a lot for applications to work at peak performance at all times. In fact, 33% would give up their full lunch break. They would also give up a portion of their program budget (32%), caffeine (29%), and even chocolate (27%).

Given the universally recognized importance of optimal application performance, why is it so difficult for IT to deliver?

Globally, 71% of respondents say they have frequently felt “in the dark” about why their enterprise applications are running slowly, spotlighting a disconnect between IT teams and business executives. And outside the Americas region, that number grows even larger at 76% in EMEA and 75% across Asia.

Troublingly, executives can contribute to the problem as they try to work around it: 37% of respondents say they have used unsupported apps when corporate apps run slowly or stop working altogether, thus adding to infrastructure complexity with more “shadow IT.” Others have expressed frustration to colleagues (34%), taken an extended lunch (29%), used slow or down apps as an excuse for missing a deadline (26%), and even left work early (26%).

Cloud Computing Benefits Business – But Also Adds Complexity

Migrating apps to the cloud has delivered benefits to the business, but also some challenges.

Nearly all (96%) of respondents use cloud-based enterprise applications in their work, 84% say their company’s use of cloud-based enterprise applications will increase over the next two years. Executives identified the benefits of cloud-based enterprise apps as increased flexibility (58%), increased productivity (53%), cost savings (46%), increased agility (41%), and increased collaboration (40%).

That’s the good news about cloud apps. The bad news is that hybrid IT contributes to the performance gap. There is an increased difficulty in getting end-to-end visibility into the complex, hybrid IT architectures that result from the use of both cloud and on-premises apps.

83% of respondents say they believe trouble-shooting application performance issues is more difficult in a hybrid IT environment. In fact, according to a survey by Forrester[1], the majority of companies (51%) say that application complexity is now their primary obstacle to mastering application performance. On average, respondents estimate it takes 7 hours for serious app problems to be completely resolved.

In summary, business executives overwhelmingly agree that application performance is critical to business performance and driving results, yet the vast majority are impacted by poor app performance, creating a performance gap. At the same time, business executives are leveraging the power of cloud-based applications and hybrid networks to elevate productivity and create happier, more loyal customers and employees. However, cloud and hybrid environments add complexity and application performance challenges that can also negatively impact business operations, and too often executives feel “in the dark” as to why poor app performance is happening and how to stop it. To deliver superior application performance in today’s hybrid environments, enterprises need a comprehensive solution that provides end-to-end application visibility, optimization and control.

Survey Methodology: The Riverbed Global Application Performance Survey 2015 is the result of a custom online survey by Wakefield Research of 900 business executives at companies with $500 million or more in revenue. “Executives” are defined as those manager-level equivalent or above. Research was conducted in October 2015 across eight countries: US, Brazil, UK, France, Germany, China, Australia, and India. Among the 900 respondents, 200 were in the US, with 100 in each remaining country.

Steve Brar is Director of Platform & Solutions Marketing at Riverbed Technology.

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.