CA Technologies is releasing a software-as-a-service version of its Application Performance Management offering that addresses a number of market dynamics identified in a survey done last Fall. “What we found was that customers want to reduce costs and gain financial flexibility,” said Jason Meserve, Sr. Product Marketing Manager, Service Assurance Customer Solutions Group, CA. “A lot of our customers, their IT budgets are stagnant or shrinking.”
According to the study, released in November, a majority of enterprises are taking a cautious approach to the adoption of APMaaS today. Most organizations (61%) have no plans to implement APM SaaS, 24% use it in some capacity, but only 4% use an APM SaaS vendor to monitor all of their critical applications. Approximately 15% of respondents planned to implement APM SaaS within the next year, with more than half planning to have their managed service provider deliver it.
CA said one reason for cautious adoption is that many APM SaaS offerings are limited in functionality and therefore don’t meet the needs of the enterprise. The ability to proactively identify issues and rapidly diagnose root causes is where the value is, and today’s APM SaaS offerings don’t provide this level of capability, the company stated.
IDC, which conducted the CA survey, also produced a report on New Relic, a four-year-old SaaS APM provider that reported 16,000 customer accounts, with 8,000 deployed in public, private, or hybrid cloud environments as of a year ago. It says the New Relic service presents a viable alternative proposition for enterprises and third parties that are seeking greater application transparency into accelerated Web/cloud application development and deployment. ‘Longer configuration cycles tied to more expensive on-premise AM tools have prevented large-scale adoption across all sizes of business.’
The APM market has been getting mixed signals lately, with an InformationWeek survey finding APM is seen as less important than it was two years ago. Gartner reported the APM market was expected to grow 9% last year (to $2.14 billion), which is 50% more than the 6% rate IT budgets were expected to grow.
A new study from TRAC reports that end-user requirements for deploying APM solutions have significantly changed in the last 12 months. These changes include the need for new capabilities, approaches for selecting APM vendors, and internal processes behind application performance monitoring initiatives.
TRAC found major discrepancies between satisfaction levels of deployments of individual APM solutions depending on if they are deployed by IT operations or developers. It also noted organizations are spending more time isolating the root cause of performance issues than on repairing the problems. Finally, time to value is the key selection criteria for evaluating APM vendors.
One thing that stood out to us [in the IDC study] was the confidence of senior IT executives in their ability to meet end-user expectations, which was down from the previous year, said Meserve. Like every other IT segment, organizations are doing more with less, he said.
CA’s response is to offer the best of both worlds, a comprehensive, flexible, low-footprint deployment choice for both SaaS and on premise APM. The SaaS version brings speed, simplicity and choice to the APM market, empowering organizations to improve service quality, deliver an exceptional end-user experience and manage service delivery costs, it said.
“We’re the market leader in APM,” said Aid Galijatovic, Director, Product Management, “ and understand how to triage and resolve those issues [like root cause analysis].” The three core capabilities of the offering are end-user experience monitoring, deep application diagnostics (down to the code level, if required), and Web performance monitoring to determine customer experience, he said.
The SaaS version doesn’t include all the capabilities of the on-premise version, but they are close, said Galijatovic. Going forward, the product plans are to incorporate new features and capabilities in the SaaS version first, and only then add them to the on-premise version. “From a customer perspective, they’ll get the latest and greatest using the SaaS version.”