Welcome!

@DevOpsSummit Authors: Liz McMillan, Pat Romanski, Elizabeth White, Yeshim Deniz, Aruna Ravichandran

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 AppDynamics Blog

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
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp empowers global organizations to unleash the full potential of their data to expand customer touchpoints, foster greater innovation and optimize their operations.
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making real-time decisions based on a combination of real user monitoring, synthetic testing, APM, NGINX / local load balancers, and other data sources, is critical.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's application ecosystem, tweaking existing software to stitch various components together leads to sub-optimal solutions. This definitely deserves a re-think, and paves the way for a new breed of lightweight application servers that are micro-services and DevOps ready!
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual business failure.
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbuilding of data centers to house increasing amounts of storage infrastructure.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. This leads to a waste of cloud resources and increased operational overhead.
Microsoft Azure Container Services can be used for container deployment in a variety of ways including support for Orchestrators like Kubernetes, Docker Swarm and Mesos. However, the abstraction for app development that support application self-healing, scaling and so on may not be at the right level. Helm and Draft makes this a lot easier. In this primarily demo-driven session at @DevOpsSummit at 21st Cloud Expo, Raghavan "Rags" Srinivas, a Cloud Solutions Architect/Evangelist at Microsoft, will cover Docker Swarm and Kubernetes deployments on Azure with some simple examples. He will look at Helm and Draft and how they can simplify app development significantly, like app scaling, rollback, etc. Helm is a tool that streamlines installing and managing Kubernetes applications, like the apt/yum/homebrew for Kubernetes. Draft works with pre-provided charts to deploy the apps via Helm.
Containers are rapidly finding their way into enterprise data centers, but change is difficult. How do enterprises transform their architecture with technologies like containers without losing the reliable components of their current solutions? In his session at @DevOpsSummit at 21st Cloud Expo, Tony Campbell, Director, Educational Services at CoreOS, will explore the challenges organizations are facing today as they move to containers and go over how Kubernetes applications can deploy with legacy components, and also go over automated capabilities provided by operators to auto-update Kubernetes with zero downtime for current and secure deployments.
SYS-CON Events announced today that Avere Systems, a leading provider of hybrid cloud enablement solutions, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere Systems was created by file systems experts determined to reinvent storage by changing the way enterprises thought about and bought storage resources. With decades of experience behind the company’s founders, Avere got its start in 2008 with a mission to use fast, flash-based storage in the most efficient, effective manner possible. What the team had discovered was a technology that optimized storage resources and reduced dependencies on sprawling storage installations. Launched as the Avere OS, this advanced file system not only boosted performance within standard, on-premises, network-attached storage systems but ...
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost and increase in speed. Sometimes in order to reduce complexity teams compromise features or change requirements
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: implement always-vigilant DNS security
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, will discuss how by using new techniques such as feature flagging, rollouts, and traffic splitting, experimentation is no longer just the future for marketing teams, it’s quickly becoming an essential practice for high-performing development teams as well.
SYS-CON Events announced today that CAST Software will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter most.
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous architectural and coordination work to minimize the volatility of the cloud environment and leverage the security features of the cloud to the benefit of the CICD pipeline.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and business benefits that cloud bursting provides, including increased compute capacity, lower IT investment, financial agility, and, ultimately, faster time-to-market.
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
Is advanced scheduling in Kubernetes achievable? Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, will answer these questions and demonstrate techniques for implementing advanced scheduling. For example, using spot instances and cost-effective resources on AWS, coupled with the ability to deliver a minimum set of functionalities that cover the majority of needs – without configuration complexity.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and controlling infrastructure. The rise of Site Reliability Engineering (SRE) is part of that redefinition of operations vs development roles in organizations.
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we've helped public, private and nonprofit organizations implement technology solutions that speed and simplify their operations. As one of the fastest growing IT solution providers in the country, we have gained a reputation for effortless implementations with relentless follow-through and enduring support.
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of engineers can navigate the Carrier Ecosystem for your IT team acting as an extension of your business, producing a hassle-free experience.