Show Me the Money: Connecting Performance Engineering to Real Business Results

Show Me the Money: Connecting Performance Engineering to Real Business Results

Walter KuketzCollaborative Consulting

Frank DaysCorrelsense

Speakers

Featured speaker:

Walter Kuketz

Senior Vice President and CTO

Collaborative Consulting

Your host:

Frank Days

VP, Marketing

Correlsense

2

Housekeeping

• Presentation will last around 30 minutes• Followed by Q&A• Slides will be available tomorrow real-user-

monitoring.com• Enjoy!

3

Agenda

Performance engineering challenges

Aligning PE to business initiatives

Improve IT and business communication

New approach to model business transactions

Performance engineering challenges today

Highly distributed

apps

Distributed teams

Evolving & changing

application architectures

Changing usage

patterns

• Mobile devices• Third party services• SaaS products• Cloud

• Performance engineering and testing• Architecture and Development• Business

• Complex and tangled system of systems• Distributed Infrastructure• Distributed production operations

• Driven by mobile anywhere• Flash traffic events

Performance engineering challenges..

• Performance organization; skillsets, multi disciplined, communication, split team

• Training and career paths

EnterpriseUser

experienceBudget Team skills

• Constant cost and budget pressure

• Maintaining a meaningful performance lab (production-like)

• User populations are exploding

• Web site performance directly impacts revenue

• Release schedules, monthly, quarterly

• Project based

Agenda

Performance Engineering challenges




Sharing information across the organization

Start Here

SDLC design & build

Performance Engineering

& testing

Productions Operationsmonitoring

Businessgoals, SLA’s

Enterprise Architecture

Connecting PE to business value

Indirect expenses

Website Conversion rate & fast website response time

Hourly cost of a website outage

Defer hardware upgrades or

purchase

New product or technology

evaluation for NFR’s & learning

investment

Manage costs, efficiencyCosts per business transaction

Key part of managing SaaS and cloudNo longer your infrastructure

Improve web site conversion ratesProactively monitor real user experience

Will it work with the new business volumesScalability, stability, performance

Design and build to support SLA’sMethodology has PE tasks and activities

Costs

Vendors

Website

Manage risk

SDLC


Indirect expenses




purchase



investment

Conversation rate: 10%

Average order amount: $55.00

Web site visitors: 5,000/hr

Event duration: 24 hrs.


Indirect expenses




purchase



investment

Outage cost of $250,000/hour

$3 Million per 12 hour day

What is the busiest hour during the

day?

Average revenue per day & peak revenue per day


Indirect expenses




purchase



investment

Process the same workload with fewer computing resources

Defer hardware upgrades, or purchases to another quarter

Design and build more efficient applications for each release cycle

A constant workload, for a given system configuration


Indirect expenses




purchase



investment

Use options based approach on product evaluations

Use benchmarks, custom performance tests, etc

Evaluate for non-functional requirements of performance, scalability, stability

Business is interested in the competitive value of a new product or technology

Budgets – people, environments, tools

You must understand how budgeting decisions are made.

Shared services IT

Project based

Business unit

Enterprise level

Budgets – indirect expenses

You must connect the resource request to:

• Large scale test from the cloud to remove the risk of system failure

• Improve web site conversion rates, reduce the risk of being the last to know by proactive real user monitoring

• Increase number of performance tests with in the testing window

Because of this we can process the same workload with less (deferred purchases)

Because of this we can process more requests

Reduce risk

Efficiency and cost

Revenue producing project

Training the team on new technologies and monitoring the market

Increase options

Agenda





Alignment – talking with the business

Why invest in a performance engineering team?

Support business objective

(growth), drive revenue

Manage risk: stability, scalability

(fear of the unknown)

Increase efficiency:

supporting same workload with fewer

Resources & Additionalspending

Reduce operational costs and production

outagesVisibility:

what are PE resources

working on?

Alignment – talking with the businessKnow your audiences approach to investments and the significance of

External focused applications vs. internal corporate

Internal business units

Cost focus

External business units

Revenue focus

IT and Business communication for Performance

• Business plans call for 20% growth

• New client for healthcare claims processing system (from 500,000/Day to 800,000)

• Retail brokerage is expecting day trading volume to increase by 40%

• And we need to handle more flash market events

• Marketing driven events with limits

Enterprise goals

Value disciplines:

Customer intimacy

Operational excellence

Innovation

Different communication styles

Where do you go from here??

• Growth: Have a marketing event where our customers visit the site for a discount of 15% on (limited) our product for a limited time (until they are gone).

• Can handle that?

• We have 750,000 customers in the database, and expect half of them to be interested in this.

What the business says:

• Well, we ran a couple of tests with 1,500 to 2,000 virtual users with almost no think time and the system held, though the Database ran hot.

• The max response time did increase well past the goal, but the average was still under six seconds.

• We could only test half the TPS of what we think 375,000 users would do. Due to the environment be smaller than production.

What IT says:

An alternative dialog

• Growth: We have scheduled a marketing event where we just invited all our registered customers to visit the site for a department wide discount of 15% on (limited) our product for a limited time ( till they are gone).

• Can handle that?

• We have 750,000 customers in the database, and expect half of them to be interested in this.

What the business says:

• We see risk to the event. We have successfully executed scalability tests for 175,000 users accessing the site, before their experience will be poor.

• We have developed a few options to help us reduce the risk;- Option A – requires $250,000 to

implement, did this business factor this into their ROI

- Option B – requires impacting other applications during the event. Taking their computing resources

- Option C – gracefully turn-away customer during peak load, ensure the customers in the system have a good experience.

What IT says:

Agenda





Transactions matter to the business people

Business Service and

workflow

Application transaction

response timeInfrastructure

Complete user experience

Confirm Order

Component view of utilization

Business transactions

How do you make sure your customers have an outstanding experience on your web site?

How do you make sure your internal users are having the right experience on their internal systems (workflow)?

Application performance management

• Measurement and compliance to SLA’s• Hold SaaS vendors accountable

• Drive revenue with faster web site• Connect revenue to performance

• Watch user experience over time• Locate trends in response time

• Locate root-cause quickly• Identify slow parts of the overall transaction

SLA’s

User experience

Be first

Minimize disruptions

To Understand App Performance…

… You must know the experience of your real users…not a robot…

Transaction Management for Performance Engineering

SharePath provides visibility into transactions in your ever-changing environment

Simple Deployment

Broadest Platform Coverage

Perfected for Production

Every Transaction, Every Hop

Architected to Manage Change

SharePath – The APM Innovator

“SharePath rapidly generates detailed multitier models of an application's execution path in an almost entirely automated manner, making the technology very easy to deploy and maintain, while capturing data at a high degree of granularity without having an impact on production performance.”

Gartner, March 2010

Auto-Detects Changes

Easy to Deploy & Maintain

Negligible Overhead

Broad Coverage

WEB

MQ/ESB

DCOM

CORBA

SERVER

APP SVR

PROXY

LDAP

WebServices

The SharePath Product Family

SharePath RUM• Real user monitoring• Understanding the end user experience

SharePath Datacenter• Transaction path detection• Every hop, every transaction

Use SharePath RUM for Free

http://www.real-user-monitoring.com

About Collaborative Consulting

• Business and technology consulting firm

– Clients across the United States

• Consulting services

• Business enablement

• Information management

• Technology enablement

• Program management

31

The Collaborative Difference

Combining a highly experienced team with several value

based delivery options ensures that our clients obtain the

right services utilizing the best model for their needs.

Experienced, pragmatic, and dedicated team

Integrated approach

Accelerators

Value

Questions?

Get your free copy SharePath RUM

today!

More information:

[email protected]

www.correlsense.com/demo

Free real user monitoring tool: www.real-user-monitoring.com

http://www.correlsense.com/

http://www.correlsense.com/demo

http://www.real-user-monitoring.com/

