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Tips to Consider When Calculating the ROI of Network Performance Monitoring Tools

Jay Botelho

In today's digital age, enterprises rely heavily on their networks to facilitate communication, collaboration, and operations. However, network performance issues can significantly impact productivity, customer satisfaction, and revenue generation. As a result, many organizations invest in network performance monitoring (NPM) tools to proactively manage network performance and ensure smooth operations. But according to EMA's Network Management Megatrends 2022 report, the percentage of NetOps teams that can successfully monitor their network performance is in steep decline, dropping from 49% in 2016 to just 27% in 2022.

Clearly these teams need to do a better job evaluating the ROI of the tools they're using. To help do that, let's explore the challenges NetOps teams face today, and dive into the quantifiable benefits they should be considering when calculating ROI of NPM tools.

NETOPS CHALLENGES

First, a few of the challenges organizations and their teams face:

Lack of a centralized platform for efficiently managing and monitoring all devices

Many organizations string together network performance monitoring products or end up logging into individual devices looking for data and trying to pinpoint issues. Without a centralized platform to monitor, analyze, and facilitate the remediation of network issues, teams will always struggle to save time, streamline operations, and meet the changing demands of the business.

Inability to monitor and analyze network telemetry efficiently

Legacy and alternative solutions can have issues in retrieving various telemetry and correlating different telemetry types. Without a single NPM (or tightly integrated set of tools) teams often face performance and telemetry storage issues that can impact their ability to efficiently analyze traffic over time to identify trends. This can also make report generation laborious and hinder performance close rates.

The challenge of scale

Networks continue to increase in size and scope. This is driven by a variety of new technologies across cloud, on-prem, and hybrid environments. Teams often struggle to scale while still maintaining visibility. They require tools that eliminate the network insight gap and deliver the best data and insights needed to act quickly and remediate issues.

These are just some of the challenges organizations face. Note that each organization will likely have their own unique network performance hurdles to consider.

BENEFITS OF NPM

Next, let's look at the quantifiable and unquantifiable benefits teams can achieve by adopting a comprehensive NPM solution. These benefits may directly or indirectly address the challenges described above. Nevertheless, consider all of these when evaluating the ROI of an NPM solution.

First the quantifiable benefits:

Reduced equipment (i.e., circuits) and bandwidth costs

By having a NPM solution that can properly identify network issues related to bandwidth usage and patterns, organizations can reduce or avoid the purchase of expensive equipment that doesn't address underlying issues. For example, enterprises can improve network performance by properly identifying chokepoints and redirecting network traffic instead of purchasing new equipment and additional bandwidth.

Increased business productivity from reduced network outages

Network downtime can be greatly reduced by improving troubleshooting productivity. This is enabled by the visibility and analytics that come with NPM solutions. Knowing how a product can reduce downtime can then be qualified into business value.

Streamlined report generation as a result of eliminating manual processes

Time spent by network engineers manually gathering data for report creation and generation can be greatly reduced and, in many cases, eliminated. The ideal NPM solution provides a wealth of standardized reports out-of-the-box. This makes it easy to create customized reports which can be scheduled and sent out automatically, reducing otherwise repetitive manual tasks.

Reduction in mean time to resolution

The reduction in time to resolve complex network issues with increased visibility and analysis results in an increase in the productivity of the network support team. Time to resolve network issues can often be cut in half with the right NPM solution.

Now the unquantified benefits:

Monitor different devices with a single solution

The ability to manage many devices from multiple device manufacturers at dispersed sites — on-premises, remote, SD-WAN, cloud, hybrid — in one place can be a challenge for organizations. Advanced NPM solutions deliver this centralized functionality.

Enhanced visualization

Preferable NPM solutions offer the ability to easily visualize network data, for example showing hop-by-hop network traffic for better situational awareness (and also enable segmentation of issues).

Ability to generate telemetry from parts of the network that have limited or no device telemetry

For example, in certain campus deployments, the switch can limit NetFlow capabilities, but a successful NPM solution can add packet analytics and generate enriched NetFlow to increase visibility. Using enriched NetFlow can deliver network and application performance data where none was previously available.

Ease of use

The product's ease of use is hard to quantify but key for product adoption, daily use by network engineers, and for reducing the amount of training required. Other ease-of-use capabilities can be integrated, for example, IT service management (ITSM) solutions or SD-WAN systems that automatically gather performance information.

These are just some of the challenges and benefits to consider when evaluating the ROI of an NPM solution. The key is identifying the challenges that exist and then quantifying the benefits that help address those challenges. Many vendors also have ROI studies associated with their products, so don't be afraid to ask.

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Tips to Consider When Calculating the ROI of Network Performance Monitoring Tools

Jay Botelho

In today's digital age, enterprises rely heavily on their networks to facilitate communication, collaboration, and operations. However, network performance issues can significantly impact productivity, customer satisfaction, and revenue generation. As a result, many organizations invest in network performance monitoring (NPM) tools to proactively manage network performance and ensure smooth operations. But according to EMA's Network Management Megatrends 2022 report, the percentage of NetOps teams that can successfully monitor their network performance is in steep decline, dropping from 49% in 2016 to just 27% in 2022.

Clearly these teams need to do a better job evaluating the ROI of the tools they're using. To help do that, let's explore the challenges NetOps teams face today, and dive into the quantifiable benefits they should be considering when calculating ROI of NPM tools.

NETOPS CHALLENGES

First, a few of the challenges organizations and their teams face:

Lack of a centralized platform for efficiently managing and monitoring all devices

Many organizations string together network performance monitoring products or end up logging into individual devices looking for data and trying to pinpoint issues. Without a centralized platform to monitor, analyze, and facilitate the remediation of network issues, teams will always struggle to save time, streamline operations, and meet the changing demands of the business.

Inability to monitor and analyze network telemetry efficiently

Legacy and alternative solutions can have issues in retrieving various telemetry and correlating different telemetry types. Without a single NPM (or tightly integrated set of tools) teams often face performance and telemetry storage issues that can impact their ability to efficiently analyze traffic over time to identify trends. This can also make report generation laborious and hinder performance close rates.

The challenge of scale

Networks continue to increase in size and scope. This is driven by a variety of new technologies across cloud, on-prem, and hybrid environments. Teams often struggle to scale while still maintaining visibility. They require tools that eliminate the network insight gap and deliver the best data and insights needed to act quickly and remediate issues.

These are just some of the challenges organizations face. Note that each organization will likely have their own unique network performance hurdles to consider.

BENEFITS OF NPM

Next, let's look at the quantifiable and unquantifiable benefits teams can achieve by adopting a comprehensive NPM solution. These benefits may directly or indirectly address the challenges described above. Nevertheless, consider all of these when evaluating the ROI of an NPM solution.

First the quantifiable benefits:

Reduced equipment (i.e., circuits) and bandwidth costs

By having a NPM solution that can properly identify network issues related to bandwidth usage and patterns, organizations can reduce or avoid the purchase of expensive equipment that doesn't address underlying issues. For example, enterprises can improve network performance by properly identifying chokepoints and redirecting network traffic instead of purchasing new equipment and additional bandwidth.

Increased business productivity from reduced network outages

Network downtime can be greatly reduced by improving troubleshooting productivity. This is enabled by the visibility and analytics that come with NPM solutions. Knowing how a product can reduce downtime can then be qualified into business value.

Streamlined report generation as a result of eliminating manual processes

Time spent by network engineers manually gathering data for report creation and generation can be greatly reduced and, in many cases, eliminated. The ideal NPM solution provides a wealth of standardized reports out-of-the-box. This makes it easy to create customized reports which can be scheduled and sent out automatically, reducing otherwise repetitive manual tasks.

Reduction in mean time to resolution

The reduction in time to resolve complex network issues with increased visibility and analysis results in an increase in the productivity of the network support team. Time to resolve network issues can often be cut in half with the right NPM solution.

Now the unquantified benefits:

Monitor different devices with a single solution

The ability to manage many devices from multiple device manufacturers at dispersed sites — on-premises, remote, SD-WAN, cloud, hybrid — in one place can be a challenge for organizations. Advanced NPM solutions deliver this centralized functionality.

Enhanced visualization

Preferable NPM solutions offer the ability to easily visualize network data, for example showing hop-by-hop network traffic for better situational awareness (and also enable segmentation of issues).

Ability to generate telemetry from parts of the network that have limited or no device telemetry

For example, in certain campus deployments, the switch can limit NetFlow capabilities, but a successful NPM solution can add packet analytics and generate enriched NetFlow to increase visibility. Using enriched NetFlow can deliver network and application performance data where none was previously available.

Ease of use

The product's ease of use is hard to quantify but key for product adoption, daily use by network engineers, and for reducing the amount of training required. Other ease-of-use capabilities can be integrated, for example, IT service management (ITSM) solutions or SD-WAN systems that automatically gather performance information.

These are just some of the challenges and benefits to consider when evaluating the ROI of an NPM solution. The key is identifying the challenges that exist and then quantifying the benefits that help address those challenges. Many vendors also have ROI studies associated with their products, so don't be afraid to ask.

Hot Topics

The Latest

AI is becoming the operating system of the enterprise. It acts as an invisible coordination layer that understands intent, connects systems, and executes work across complex SaaS environments. Previously, employees had to click through multiple systems — CRM, ERP, support tools, collaboration platforms — to complete a single task. Now, instead of navigating each application manually, they can simply state what they need to accomplish ...

In 2026, the cost of downtime or an outage is no longer just a technical inconvenience; it's a $600 billion wake up call for global businesses. As our digital ecosystems become  more interconnected, each touchpoint introduces new risks and multiplies the consequences when things go wrong. And the data is clear: aggregate downtime costs  for Global 2,000 companies have surged 50% since 2024, reaching a staggering $600 billion ...

Deloitte found that 74% of enterprises expect to deploy agentic AI solutions in the next 24 months. However, the rush to deployment is outpacing foundational work, though. Only 21% of enterprises have fully formed agent governance models in place. The result? AI agents deployed without guidance or governance begin to function as fragmented islands of complexity ...

Cloud spending is no longer viewed as a passthrough IT expense, but as a strategic financial lever that directly impacts innovation capacity, profitability and enterprise resilience, according to the CFO Cloud Cost Optimization Report from Azul ...

As AI moves from generating responses to performing actions, the need for trust increases exponentially. And as organizations enlist AI agents for increasingly sophisticated business processes, trust is going to be the single most important theme for spurring adoption. What can organizations do to build trustworthy AI agents? ...

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 ...