Turbonomic Blog

Evolution of Enterprise Applications and Performance

Posted by Bali Kuchipudi on Jun 1, 2020 3:57:34 PM

Applications are at the heart of every business and power the way enterprises interact with customers, employees, and suppliers. By 2023, IDC predicts that the global economy will finally reach "digital supremacy" with more than half of all GDP worldwide driven by products and services from digitally transformed enterprises.  Across any industry vertical, applications are the new currency.

Every business is going through a digital transformation, developing, and using software to digitize processes that improve the customer experience, accelerate product innovation, and drive revenue growth. The use of DevOps processes, containers, and microservices in a multicloud world is empowering IT organizations to move fast, scale out, and deliver faster time to market and improved customer relationships.

If you observe the current global situation, the enterprise digital transformation has suddenly accelerated. A few examples of this acceleration can be seen in the recent quarter at:

  • Nike – Digital sales increased by 36% and digital sales offset China retail hit (80% of stores closed)
  • Domino's – 75% of transactions is via digital routes
  • Albertsons – Digital sales increased by 32%, 26% increase in U loyalty program enrollments and 37% increase in digital coupon redemptions
When and why do applications not perform?

Across any vertical, if your customers do not have great experiences, then you risk losing them as well as your brand reputation and revenue could be negatively impacted. Take retail for example; when applications perform poorly – retail companies lose $18B per year in revenue for abandoned shopping carts, 44% of customers talk about the negative experience and 64% of customers will be lost to competition.

Application performance relies on two things; applications are architected/written well and applications get the infrastructure resources they need when they need them as demand fluctuates. It has never been more challenging to assure applications deliver exceptional end user experiences that drive positive business results and beat the competition.

Enterprises are investing in technologies and processes to make things better, easier, and more engaging for their customers. These technologies and processes provide companies with sustainable competitive advantages through speed and quality capabilities that deliver a tighter customer relationship, improving customer loyalty. But as the customer experience simplifies, application complexity is exploding while enterprises embrace highly distributed applications built using microservices on containers spanning multivendor and multicloud environments, with relentless code releases.

How do you make the complex simple?

Application awareness and intelligence, aligning applications and infrastructure, and having a common understanding of horizontal (application) and vertical (infrastructure) dependencies will make complex simple. Application Performance Monitoring (APM) solutions as AppDynamics, New Relic and Dynatrace will help in understanding the application topology, metrics and insight related to end user experiences. They provide a clear understanding of the horizontal (application) dependencies, how application services are related to each other and are they architected and written well.

Application awareness and intelligence is one piece of the puzzle, but when applications are in production they are deployed on containers, VMs and cloud instances distributed over on-premises, hybrid and multicloud environments. Often, numerous teams are involved in assuring application performance across the infrastructure, cloud, and application layers. Network, infrastructure and operations, DevOps, and development teams as well as site reliability engineers (SREs) and capacity planners frequently collaborate on different data sets and metrics, collected from various silo based tools, and attempt to stitch together alerts to manually assure application performance. The number of siloed teams, fragmented tools and data sets, and disconnected performance thresholds for traditional performance management results in a slow, manual reaction time for IT. This leads to negative outcomes that impact the business and customers.

Having a common understanding of vertical (infrastructure) dependencies, insights into how the resources are utilized and what actions to take to assure performance will further simplify the complexity (second piece of the puzzle). This full-stack approach will tie together dynamic actions from the application layer, through the container, VM and cloud instances, down through the hypervisor or public cloud platform, and finally through to the converged and physical infrastructure.

Summary

Turbonomic Application resource management (ARM) has full stack visibility and provides a common understanding of vertical (infrastructure) dependencies eliminating the need for multiple tool sets and siloed management. ARM is the critical bridge between applications and infrastructure operations. It provides visibility, insight, and automated actions to prevent problems (and minimize related troubleshooting) as infrastructure resources are continuously matched to application demand.

ARM ensures that applications get the resources they need to perform by:

  • Using economic principles to drive infrastructure and cloud resource decisions at each layer of the stack.
  • Providing resourcing decisions that can be automated to continuously drive healthy application performance while enforcing business constraints.
  • Assure resourcing actions adhere to SLOs with real-time validation by an Application Performance Monitoring (APM) tool

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