In 2015, the software-first economy will continue to expand, and mobile will be cemented as an integral part of e-commerce and other financial transactions. Today, conducting business via mobile apps is as ubiquitous as the smartphones the apps operate on. But a mobile-first economy necessitates drastically new operations for enterprises and their IT organizations. With most or all customer interaction online, it demands a whole new level of monitoring and management.
Software operations are now the backbone of the software-driven business, and as critical as the supply chain of a retail company. According to a recent report by venture capital firm Kleiner, Perkins, Caufield and Byers, mobile application revenue trumps mobile ad revenue and accounts for 68 percent of mobile monetization. The amount of revenue generated via mobile applications is far too significant to ignore the back-end technology that enables continuous delivery and performance of these apps.
Guest article by Maneesh Joshi, senior director product marketing and strategy, AppDynamics
Should these new operations be overlooked, customer experience will suffer dramatically. Technical glitches while calling a taxi, booking a flight or making a purchase significantly damage a brand. With every performance problem, there is a direct and measurable loss of revenues for online retailers or other e-commerce businesses (financial services, travel etc.). The only way to deliver the optimum level of customer experience is to embrace Application Intelligence.
Defining Application Intelligence
The concept of Application Intelligence is defined by the ability of an organization to collect, understand and act upon knowledge derived from user experience, application performance, and infrastructure data within the context of business and operational transactions. In increasingly complex IT architectures, comprehensive visibility into applications is simply impossible using the old-school legacy solutions that were created when architectures were more simplistic, applications were often standalone or monolithic and mobile devices were rare.
Enterprises that lack this level of operational visibility and intelligence are in a dangerous situation— if you can’t see something, you can’t manage it. And if you can’t manage the business based on visibility into all parts of it, it is impossible to develop a strategic business plan. Business success now is held hostage by these software applications.
The necessity of Application Intelligence
A platform that provides complete Application Intelligence not only enables IT organizations to optimize their apps to ensure they run properly, but also provides robust analytics than can enable more strategic business decisions. Application Intelligence produces raw business data from every line of code, in all layers of an application and across every single node.
Application Intelligence provides teams across several business units in an organization a uniform language to assess performance.
Data warehousing solutions can provide only historical snapshots of completed transactions. Today’s fast-changing software-centric business environments require a real-time view into transactions. As the space continues to evolve, Application Intelligence will not be a “nice-to-have,” but rather a must-have in order to conduct business in the “new world order” that comes with the software-defined economy.
Software ate the world. As a result, businesses today simply cannot function without it. The applications on mobile and web just have to work so that businesses can operate and customers can purchase the goods and services they need. According to a recent study, nearly 90 percent of people will stop using an app due to poor performance. This means that even a delay of a few seconds can cost businesses a large sum of customers.
Down time can cost a business as much as $110,000 per hour, which equates to $1.5 million annually. Application Intelligence tools are paramount in today’s economy, not only to ensure smooth operations and transactions, but also to provide business intelligence to propel a business forward. In order to survive in this new marketplace, business requires a new set of techniques that not only ensure continuous performance but also extract intelligence.
For more on application performance, read the Aberdeen research report Preventing Virtual Application Downtime
Maneesh Joshi has over 15 years of experience in the enterprise software space. In his current role as Senior Director of Product Marketing and Strategy at AppDynamics, he is responsible for its global go-to market strategy and product marketing. He started his career as a key member of the team that built Oracle’s Service Oriented Architecture and Business Process Management businesses. Before running product marketing for this group, he managed product planning, architecture, and engineering for Oracle’s integration products. Maneesh holds a B.S. in Engineering from the Indian Institute of Technology, Kharagpur, where he graduated with honors. He also received an M.S. in Engineering from the University of California, Davis, and an M.B.A. from The Wharton School at the University of Pennsylvania.