|By AppDynamics Blog||
|February 27, 2014 01:00 PM EST||
Financial Services companies operate in a difficult environment. Many of their applications are absolutely vital to the proper workings of the global economy. They are one of the most heavily regulated industries in the world, and they are a constant target of hackers. Their systems need to be available, performant, and secure while generating the revenue sought by Wall Street and their shareholders.
In this article we'll take a look at three factors that impact revenue and how APM is used to mitigate risk.
1. Customers Hate to Wait
Losing a customer is a bad thing no matter the circumstances. Losing a customer due to poor application performance and stability is preventable and should never happen! If you lose customers, you either need to win them back or attract new customers.
- Over a five-year period businesses may lose as many as 1/2 of their customers
- Acquiring a new customer can cost 6 to 7 times more than retaining an existing customer
- Businesses who boosted customer retention rates by as little as 5% saw increases in their profits ranging from 5% to a whopping 95%
Based on this research, you should do everything in your power to retain your existing customers. Providing a great end user experience and level of service is what every customer expects.
APM software tracks every transaction flowing through an application, recognizes when there are problems and can even automatically fix the issue.
Understanding the components involved in each servicing each transaction is the first step in proper troubleshooting and problem resolution.
2. Customer Loyalty = Revenue Growth
On the flipside, better performance means more customer loyalty and, as a result, revenue gains. The Net Promoter methodology, developed by Satmetrix in cooperation with Bain & Company and Fred Reichheld, is a standard way to measure customer satisfaction. Satmetrix developed the Net Promoter methodology, which is an indexed measure of customer loyalty. In their Net Promoter whitepaper, Satmetrix discovered a direct correlation between high customer loyalty scores and the rate of revenue growth for those companies. The paper showed that the higher the customer loyalty score a company achieved, the higher their rate of revenue growth over a 5-year period.
With applications playing a dominant role as the most common interaction between company and customer, it is imperative that customers have a great experience every time they use your application. Slow transactions, errors, and unavailable platforms leave customers dissatisfied and will reduce your loyalty score. Over time, this will have a significant impact on revenue.
So if we accept the premise that performance should be top-of-mind for anyone with a critical banking or FS application, what do we do next? How do we improve our application management strategy to prevent loss of revenue and improve customer loyalty? The answer: by taking on a transaction-based approach to application performance management.
APM software tracks the performance of all transactions, dynamically baselines the normal performance, and alerts when transactions deviate from their normal behavior. In this manner you're able to identify performance problems as they are beginning instead of waiting until customers are frustrated and abandoning you applications.
List of business transactions classified by their level of deviation from normal performance.
3. Transactions = Money
Transactions are the lifeblood of banking. From making an online payment or converting currency to buying or selling stock, just about everything a bank does involves transactions. Furthermore, a significant portion of banks' revenue comes from transaction fees for activities ranging from ATM withdrawals to currency conversion and credit card usage. For these fee-based transactions, the faster you can ring the cash register (response time of business transactions), the more money you will make and the better likelihood that your customer will come back to you for their next transaction.
With this in mind, it is imperative that IT organizations take a user-centric, or rather, transaction-centric approach to managing application performance.
APM software provides context that enables you to understand the business impact of failed and/or slow transactions. The data gathered by APM software can be used to focus on improving functionality that is used most often or responsible for the most revenue.
Having various data perspectives allows application support and development teams to prioritize what needs to be updated in the next release.
If you aren't using an APM tool yet, or if your APM tool isn't providing the value that it should be, then you need to take a free trial of AppDynamics and see what you and your customers have been missing.
The post 3 Reasons Financial Services Companies Need APM Right Now written by Jim Hirschauer appeared first on Application Performance Monitoring Blog from AppDynamics.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 31, 2015 02:30 PM EST Reads: 2,729
In this demo at 15th Cloud Expo, John Meza, Product Engineer at Esri, showed how Esri products hook into Hadoop cluster to allow you to do spatial analysis on the spatial data within your cluster, and he demonstrated rendering from a data center with ArcGIS Pro, a new product that has a brand new rendering engine.
Jan. 31, 2015 02:30 PM EST Reads: 1,785
"Blue Box has been around for 10-11 years, and last year we launched Blue Box Cloud. We like the term 'Private Cloud as a Service' because we think that embodies what we are launching as a product - it's a managed hosted private cloud," explained Giles Frith, Vice President of Customer Operations at Blue Box, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 31, 2015 02:30 PM EST Reads: 2,759
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Jan. 31, 2015 02:15 PM EST Reads: 1,678
CloudBees, Inc., has announced a $23.5 million financing round, led by longtime CloudBees investor Lightspeed Venture Partners. Existing investors Matrix Partners, Verizon Ventures and Blue Cloud Ventures also participated in the round. The latest funding announcement follows earlier rounds of $4 million, $10.5 million and $10.8 million, bringing the total investment in CloudBees to just under $50 million since the company’s inception in 2010. Previous venture investment rounds were led by Ma...
Jan. 31, 2015 02:00 PM EST Reads: 873
“We are strong believers in the DevOps movement and our staff has been doing DevOps for large enterprise environments for a number of years. The solution that we build is intended to allow DevOps teams to do security at the speed of DevOps," explained Justin Lundy, Founder & CTO of Evident.io, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 31, 2015 02:00 PM EST Reads: 2,268
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by minin...
Jan. 31, 2015 02:00 PM EST Reads: 3,886
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Jan. 31, 2015 02:00 PM EST Reads: 2,850
Puppet Labs on Wednesday released the DevOps Salary Report, based on salary data gathered from Puppet Labs' industry-recognized State of DevOps Report. The data confirms that market demand for DevOps skills is growing, and that DevOps engineers are among the highest paid IT practitioners today. That's because IT organizations today are grappling with how to be more agile and responsive to the business, while maintaining the stability of their infrastructure. DevOps practices, such as continuous ...
Jan. 31, 2015 02:00 PM EST Reads: 1,501
AppDynamics, the application intelligence leader for software-defined businesses, announced the general availability of the AppDynamics Fall '14 Release. Serving the combined needs of IT and business teams across the enterprise, the latest release provides a comprehensive view across all aspects of digital performance in ultra large scale deployments. AppDynamics delivers Application Intelligence by building out advanced capabilities across the key areas of analytics, unified monitoring and D...
Jan. 31, 2015 02:00 PM EST Reads: 2,050
Can the spatial component of your Big Data be harnessed and visualized, adding another dimension of power and analytics to your data? In his session at Big Data Expo®, John Meza, Product Engineer and Performance Engineering Team Lead at Esri, discussed the spatial queries that can be used within the Hadoop ecosystem and their integration with GeoSpatial applications. The GIS Tools for Hadoop project was also discussed and its implementation to discover location-based patterns and relationships...
Jan. 31, 2015 01:45 PM EST Reads: 1,729
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
Jan. 31, 2015 01:30 PM EST Reads: 2,298
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
Jan. 31, 2015 01:15 PM EST Reads: 2,690
Software AG and Wipro Ltd. have announced a joint solution platform for streaming analytics that provides real-time actionable intelligence for the Internet of Things (IoT) market. “The key to successfully addressing the IoT market is the ability to rapidly build and evolve apps that tap into, analyze and make smart decisions on fast, big data”, said John Bates, Global Head of Industry Solutions and CMO, Software AG. To address the huge market potential created by streaming analytics in conj...
Jan. 31, 2015 01:00 PM EST Reads: 1,144
Appcore deploys cloud for service providers based on the Apache Cloud set. In this demo at 15th Cloud Expo, Nate Gordon, Director of Technology at Appcore, shows their new product that's coming out in January - Appcore Atlas, which is focused on deploying private clouds based on CloudStack in 15 minutes or less. Our upcoming June 9-11, 2015, event in New York City will present a total of 10 simultaneous tracks (the largest conference content in the world) by an all-star faculty, over three days...
Jan. 31, 2015 01:00 PM EST Reads: 1,610