Welcome!

@DevOpsSummit Authors: Yeshim Deniz, PagerDuty Blog, Mano Marks, Elizabeth White, XebiaLabs Blog

Blog Feed Post

Thinking About APM? 4 Key Considerations for Buy vs. Build Your Own

image_pdfimage_print

Most technology folks have heard Marc Andreessen’s provocative statement, “Software is eating the world.”  Whether you agree fully or not, you’re realizing that your business critical software applications increasingly drive both the top-line revenue growth and the bottom-line operational efficiency of your company – and often form the pillar of your business identity.  

Legacy monitoring systems you have in place, capturing and alerting on scores of infrastructure level metrics, have helped protect your technology investment to some degree.  I’ve worked for two leaders in that space, HP and BMC, so can personally attest to the real benefits of server, network and database monitoring that clients achieve.  However, as consumer demand for superior services and faster innovation accelerate, we see that the applications and associated business transactions are what end-users ultimately care about.  You can no longer afford slow response time, let alone application outage situations, as customers will delay or abandon purchases – or worse yet switch to a competitor when you have unacceptable application performance.  And unfortunately these “Yellow Light” or slow performance situations are the most challenging to detect and fix!

So you’ve come to the conclusion that you need a full-fledged application performance management (APM) solution.  The question some companies wrestle with at this point is: “Should we invest in an 3rd party APM solution or build it ourselves?”

Four key considerations should be:

  1. Upfront Costs – such as Initial Project Build & Software License cost.

  2. Ongoing, Annual Solution Costs – such as Server / Storage footprint, administrative maintenance & support, & agile development / release activities.

  3. Solution Capabilities Driving Benefits – chiefly, the ability to drive down the number of performance defects in production, as well as the MTTR when issues do occur.

  4. Opportunity Costs – personnel resources working on in-house APM, versus are there mature 3rd party APM solutions available for purchase.

1.  Upfront Costs

It’s difficult to estimate exactly how long it would take a company to develop a basic application monitoring tool in-house – but we’ll give it a logical shot.  Of course, on the plus side, the company would avoid spending money on a “commercial off-the-shelf” (COTS) 3rd party software application.  Based on experience for design, development, testing, and release, a good estimate for an in-house Initial Project Build is a team of 2-3 Engineers about 6 months to have a basic, log parsing and alerting tool ready.  A more robust tool for a medium to large sized deployment may be 2-3x this size and investment.  A gaming company we work with, when assessing an in-house build situation, estimated an APM product development lifecycle in the 12 to 18 month range.  Why?  APM functionality that involves tracing the user experience of distributed transactions, where every call needs to be traced across each service layer, is non-trivial technical work.  Also, you’ll need to factor in one-time hardware and prerequisite software purchasing costs.  So a ballpark cost from $400K to well into seven figures is reasonable.

What would be the upfront software licensing cost of a 3rd party APM solution?  Probably in a similar range, perhaps higher in certain cases.  Also, many APM companies offer lower annual SaaS subscription costs as an alternative to full upfront licensing payments – which add up to the same licensing fees over 3-5 years.  However, you should take into consideration that some solutions such as AppDynamics, which can be downloaded and installed via self-service within hours, provide immediate Time-to-Value versus waiting for a full software development lifecycle to occur for a custom built solution.

Advantage:  Cost = In-house (slight? depends on robustness of APM solution built), Time-to-Value = 3rd Party APM

2.  Ongoing, Annual Solution Costs

First, let’s determine the hardware & storage footprint required for the solution.  Typical in-house developed solutions architect for over-capacity as a rough estimate because of unknowns, and to avoid encountering limitations & performance issues.  A good estimate per environment (Dev, Test, Prod) may be 2 Large Servers and 16 TB of Storage for a starter in-house APM solution.  This cost might run in the $100K to $135K range per year.

For 3rd party APM solutions, the specs are well-known, validated, and published.  A leading APM solution like AppDynamics has been built and tuned via R&D by specialists over several years.  The footprint for a similar medium-sized deployment would be 1 Medium Server and 6 TB of Storage, for a rough cost of about $40-50K per year – or less than half of the in-house cost.

From an FTE support perspective for the in-house solution, you have to understand the administrative, support, & enhancement / new development labor required.  A good admin & support estimate would run about 1-2 FTEs, and new development might run 2 engineering FTEs to keep up with enhancement requests and coverage for new applications & technologies.  Remember, users will not expect the APM solution to stay static!  You might start with basic metric stores and time series data, but this will quickly run out of steam.  Next, you’ll want to build a baseline engine for the metric store based on load patterns and percentiles of metrics, as examples.  Demand for dashboarding and security access control requirements come into play, and require much design and testing work especially as the solution scales.  So this annual labor cost would run in the $375K plus range.

On top of that, in today’s Agile DevOps world, there are additional maintenance / revision labor costs each time a business application is released to production.  Appliances and/or monitoring agents need updating, and both application and business transaction topology maps likely need to be revised manually.  As the frequency of application release grows, often to a bi-weekly application release schedule, these are not insignificant tasks.  We estimate in a medium sized deployment, this could require about 2,000 labor hours per year to keep up, or about $100K.

In the AppDynamics APM world, these types of capabilities are already built into the solution.  So the maintenance per application release is zero since there is automated application discovery, mapping, and business transaction flows out of the box.  The ongoing FTE administrative & maintenance requirements for a medium-sized deployment are 1 FTE, or about $125K/year.  And new development is covered in the license costs via the hundreds of R&D professionals contributing to the various releases of the 3rd party software.

Advantage:  3rd Party APM (large, especially adding up multiple years)

3.  Solution Capabilities Driving Benefits

Next we look at the ability of an APM solution to provide benefits to your enterprise – which can be grouped into reducing costs, mitigating risks, and increasing or protecting revenue.  Two key performance metrics we suggest for measuring impact on cost, risk, and revenue are:

  1. # defects released to production

  2. Mean time to repair (MTTR) per performance issue

At AppDynamics, this is where we’ve invested our R&D dollars since 2008, and our industry-exceeding Net Promoter Score (NPS) of 84 – i.e., more than 8 in 10 customers would recommend us to a friend or colleague – is a testimony to our ability to achieve these benefits.

By leveraging AppDynamics in Pre-Production, our clients often report reduction in performance issues released to Production of 40%.  And by watching every line of code executed in Production, and measuring & scoring each transaction, we provide a “3 clicks to resolution” approach that often reduces MTTR per performance issue by 65% or more.  This is true of small application environments, as well as large deployments over 20,000 JVMs.

For an in-house solution, you have to assess what it would take to build similar APM capabilities to achieve these levels of defect and MTTR reduction.  How many years, developers, and dollars?  (And, as one client executive recently told us, “If I could do this, why wouldn’t my company be competing in the APM software space?!”)  Or alternatively and more likely, “let’s stitch something low-cost together” in-house.  Admittedly this sacrifices capability for cost cost, which translates into fewer features to address the MTTR and # of performance issue challenges you face.

For ballpark purposes, then, let’s credit the in-house solution in helping reduce both # of defects and MTTR up to 20%.  If we use an industry average cost per minute of slowness / downtime equating to $500 (inclusive of both labor and revenue protection factors), and there is one Sev1 performance issue per application per quarter – the difference between the in-house solution versus an APM solution would equate to over $1M per year for a medium sized deployment.

Advantage:  3rd Party APM (not close; and these add up year over year, too)

4.  Opportunity Costs

These costs deal chiefly with choosing what is most valuable for your developers to spend their time on.  Especially in today’s high-technology enterprises, there are excellent engineers capable of building fantastic tools across a wide range of areas – so it is tempting to initiate an in-house APM build project and get something out the door.  However, APM is not these engineers’ specialty and their talents are often better utilized on alternative software projects related to the core goods & services your company sells to your end-use customers that drive revenue.

This is an area we won’t attempt to quantify, as it’s more of a qualitative assessment and business decision specific to your organization.  But with a fairly mature and continually developing 3rd Party APM market, for most enterprises it’s logical to say….

Advantage:  3rd Party APM

4.  Summary

While the initial, upfront set of costs for an in-house vs. 3rd party APM solution purchase may be about the same (license vs build) – which leads some organizations to consider a “Do It Yourself” approach – there are significant ongoing annual costs for the care and feeding of an in-house APM solution compared to the 3rd party APM alternative.  These include the infrastructure footprint, as well as labor costs associated with administration, maintenance & enhancements.

The biggest differential in cost is typically related to the chief purpose of an APM solution – how often does it proactively reduce the number of production defects, and how fast does it help you resolve performance issues when they do inevitably occur?

Screen Shot 2014-06-19 at 8.47.02 AM

For a medium sized deployment, the total cost / benefit advantages of a 3rd party APM solution easily exceed $1M per year when compared to the in-house build alternative.  This benefit accumulates year over year.  And it’s worth mentioning here at AppDynamics, we achieve magnitudes of benefit even beyond other 3rd party APM solutions with lesser capabilities.  We’ve leveraged the feedback of our over 1,000 customers during the past several years to drive R&D and greater benefit realization.

For AppDynamics, these advantages stem from:

  1. The way our solution is architected to require minimal setup, upkeep and Time-to-Value, while providing ongoing Ease of Use.

  2. Key capabilities – such as transaction tracing across complex, distributed applications, in your data center and the cloud – which lead to significant improvement in KPIs such as # performance defects and MTTR.

  3. Our ability to intelligently scale to support the most complex and largest Pre-Production and Production environments.

  4. Thought-leadership expanding into our “Application Intelligence” platform with a host of new modules and capabilities.

So when assessing an in-house vs 3rd party APM solution, consider a multi-year TCO horizon and not just a short-term initial cost estimate.  Our personnel at AppDynamics standby to provide you help in not only getting a deep-dive on the APM market and our solution features, but also to analyze the value of APM choices via a detailed ROI assessment.

Thinking of trying a next generation APM solution rather than build it yourself? Try AppDynamics for free today!

The post Thinking About APM? 4 Key Considerations for Buy vs. Build Your Own written by appeared first on Application Performance Monitoring Blog from AppDynamics.

Read the original blog entry...

More Stories By Jyoti Bansal

In high-production environments where release cycles are measured in hours or minutes — not days or weeks — there's little room for mistakes and no room for confusion. Everyone has to understand what's happening, in real time, and have the means to do whatever is necessary to keep applications up and running optimally.

DevOps is a high-stakes world, but done well, it delivers the agility and performance to significantly impact business competitiveness.

@DevOpsSummit Stories
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
The goal of Continuous Testing is to shift testing left to find defects earlier and release software faster. This can be achieved by integrating a set of open source functional and performance testing tools in the early stages of your software delivery lifecycle. There is one process that binds all application delivery stages together into one well-orchestrated machine: Continuous Testing. Continuous Testing is the conveyor belt between the Software Factory and production stages. Artifacts are moved from one stage to the next only after they have been tested and approved to continue. New code submitted to the repository is tested upon commit. When tests fail, the code is rejected. Subsystems are approved as part of periodic builds on their way to the delivery stage, where the system is being tested as production ready. The release process stops when tests fail. The key is to shift test ...
In recent years, containers have taken the world by storm. Companies of all sizes and industries have realized the massive benefits of containers, such as unprecedented mobility, higher hardware utilization, and increased flexibility and agility; however, many containers today are non-persistent. Containers without persistence miss out on many benefits, and in many cases simply pass the responsibility of persistence onto other infrastructure, adding additional complexity.
Quickly find the root cause of complex database problems slowing down your applications. Up to 88% of all application performance issues are related to the database. DPA’s unique response time analysis shows you exactly what needs fixing - in four clicks or less. Optimize performance anywhere. Database Performance Analyzer monitors on-premises, on VMware®, and in the Cloud, including Amazon® AWS and Azure™ virtual machines.
Developers want to create better apps faster. Static clouds are giving way to scalable systems, with dynamic resource allocation and application monitoring. You won't hear that chant from users on any picket line, but helping developers to create better apps faster is the mission of Lee Atchison, principal cloud architect and advocate at New Relic Inc., based in San Francisco. His singular job is to understand and drive the industry in the areas of cloud architecture, microservices, scalability and availability. In a keynote presentation, he spoke to a standing-room-only crowd at New York's Cloud Expo about how highly available, highly scalable systems can help developers attain the goal of better apps faster.
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore the ways that Nutanix technologies empower teams to react faster than ever before and connect teams in ways that were either too complex or simply impossible with traditional infrastructures.
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet the demands of Digital Transformation – including accelerating application delivery, closing feedback loops, enabling multi-channel delivery, empowering collaborative decisions, improving user experience, and ultimately meeting (and exceeding) business goals.
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure networks with agility, performance and value.
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure networks with agility, performance and value.
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help global organizations open new revenue streams, increase efficiencies, improve customer experience and ensure rapid time to market in the digital age. Only Hitachi Data Systems powers the digital enterprise by integrating the best information technology and operational technology from across the Hitachi family of companies. We combine this experience with Hitachi expertise in the internet of things to d...
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTred processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on quality and value.
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Business Unit at CA Technologies, will share his vision about the true ‘DevOps Royalty’ and how it will take a new breed of digital cloud craftsman, architecting new platforms with a new set of tools to achieve it. He will also present a number of important insights and findings from a recent cloud and DevOps study – outlining the synergies high performance teams are exploiting to gain significant busin...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Did you know that you can develop for mainframes in Java? Or that the testing and deployment can be automated across mobile to mainframe? In his session at @DevOpsSummit at 20th Cloud Expo, Vaughn Marshall, Sr. Principal Product Owner at CA Technologies, will discuss and demo how increasingly teams are developing with agile methodologies using modern development environments and automating testing and deployments, mobile to mainframe.
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help global organizations open new revenue streams, increase efficiencies, improve customer experience and ensure rapid time to market in the digital age. Only Hitachi Data Systems powers the digital enterprise by integrating the best information technology and operational technology from across the Hitachi family of companies. We combine this experience with Hitachi expertise in the internet of things to d...
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing best practices around collaboration, monitoring, configuration and analytics that will help you boost experience and optimize utilization of your modern IT Infrastructures.
Back in February of 2017, Andrew Clay Schafer of Pivotal tweeted the following: “seriously tho, the whole software industry is stuck on deployment when we desperately need architecture and telemetry.” Intrigue in a 140 characters. For me, I hear Andrew saying, “we’re jumping to step 5 before we’ve successfully completed steps 1-4.”
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker containers gain prominence. He explored these challenges and how to address them, while considering how containers will influence the direction of cloud computing.
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single threaded, you can effectively identify hot spots in your serverless code. In his session at 20th Cloud Expo, David Martin, Principal Product Owner at CA Technologies, will give a live demonstration and code walkthrough, showing how to overcome the challenges of monitoring S3 and RDS. This presentation will provide an overview of necessary Amazon Lambda concepts and discuss how to integrate the monitoring data with other tools.
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value Stream Mapping for the development and operations tool chain by offering DevOps Tool Chain Integration and Traceability; DevOps Tool Chain Orchestration; and DevOps Insight and Intelligence. CollabNet also offers traditional application lifecycle management, ALM, for the enterprise through its TeamForge product.