# What is Application Performance Monitoring (APM)?

Application Performance Monitoring (APM) is the practice of tracking and
managing how well software applications perform in production. It uses special
tools and data to keep tabs on things like how fast an application responds, how
reliable it is, and how it uses up system resources.

Think of APM like a doctor for your applications. Just as a doctor monitors your
health with checkups and tests, APM tools constantly check the 'vital signs' of
your applications to ensure that they're always meeting their service level
objectives.

[ad-uptime]

## A brief history of APM tools

The rise of complex internet applications revealed a crucial gap: existing tools
were blind to how well the software was actually serving users. Pioneers like
[Wily Technology](https://en.wikipedia.org/wiki/Wily_Technology) addressed this need with innovations such as bytecode
instrumentation.

This technique injected monitoring logic into running applications, enabling
them to track user requests without requiring developers to manually modify
application code. Although Wily focused on monolithic Java applications, this
marked the birth of true application-level performance monitoring.

As monoliths gave way to interconnected services (SOA), tracing became even more
complex. Companies like Dynatrace and AppDynamics revolutionized APM by
extending monitoring to communication between applications. Their tools could
follow transactions across distributed systems, providing a much more complete
picture of performance. Continuous refinement of instrumentation techniques
became critical, striking a balance between data richness and acceptable
overhead.

New Relic, founded in 2008, popularized the Software-as-a-Service model for APM.
By targeting cloud environments and simplifying the setup process, SaaS lowered
the barrier to entry for organizations. However, early concerns around data
privacy initially made SaaS adoption slower within larger enterprises. These
concerns eased over time due to the shift towards cloud computing, although they
remain a factor in highly regulated sectors.

## Why is Application Performance Monitoring important?

[Traditional server monitoring](https://betterstack.com/community/comparisons/server-monitoring-tools/) focused on the basic
health of individual machines, such as if a server was up, had enough disk
space, or wasn't overheating. While important, this offered a limited view of
how well applications were actually serving users.

Modern applications are far more complex, often consisting of interconnected
components spread across various systems. This reliance on distributed services
means issues could arise from sources traditional server monitoring wouldn't
detect. APM addresses this by directly tracking how applications perform from
the user's perspective – measuring response times, error rates, and how
efficiently they use resources.

This focus on user experience is essential as slowdowns or glitches in your
applications can lead to irritated users, a bad reputation, and lost revenue. By
implementing APM practices, you can stay one step ahead and catching these
problems before they cause serious trouble.

## What do APM tools measure?

APM provides visibility into a wide range of metrics and data points critical to
understanding application health, performance, and user experience. These are
usually divided into two categories:

### 1. Application-level metrics

- **Response time**: How long it takes the application to respond to user
  requests. Slow response times directly impact user experience.
- **Error rates**: The frequency of errors or crashes. This helps identify code
  problems or misconfiguration.
- **Request rates**: The volume of user requests coming in. Understanding
  patterns helps with capacity planning and pinpointing traffic spikes that may
  overwhelm your systems.
- **User interactions**: Track how users interact with features within your
  application. This reveals areas where the experience might be slow or clunky.
- **Availability/uptime**: Monitors whether the application is online and
  accessible to users.
- **Code-level performance**: Advanced APM tools can pinpoint bottlenecks within
  specific functions or lines of code, helping developers target optimizations.

### 2. Infrastructure metrics

- **Server CPU and memory usage**: Tracks CPU and memory demands of the
  application.
- **Disk read/write speeds**: Monitors how fast data is accessed from storage.
  Slow storage often slows down applications that rely on databases or file I/O.
- **Network bandwidth**: Analyzes network traffic to identify potential
  bottlenecks or congestion issues affecting data flow and application
  performance.
- **Instances**: For cloud-based applications, APM tracks how many instances of
  applications or services are running.

## How Application Performance Monitoring works

A successful APM strategy employs a suite of specialized tools to keep tabs on
how your applications are running from both the end-user's perspective and deep
within the code itself. These tools provide different layers of insight:

### 1. Distributed tracing

Distributed tracing allows you to follow a user's request as it hops between
different services and systems within your application. This reveals
bottlenecks, errors, and dependencies that could impact the overall user
experience. Advanced APM solutions include auto-instrumentation, reducing setup
time, and many support the OpenTelemetry standard for flexibility.

### 2. Service inventorying

A service inventory provides an overview of all the components within your
application, along with their key metrics, dependencies, and any active alerts.
It often includes visual service maps, making it easier to see how different
parts of your application interact.

### 3. Code profiling

Code profiling drills down, taking snapshots of your code as it runs. This
pinpoints sections of code that consume excessive time or resources. Some tools
offer various profiling methods (CPU, memory, I/O, etc.) for a more granular
analysis.

### 4. Error tracking

Error tracking goes beyond counting errors. It groups related errors together,
providing context to help track down the root cause. Smart error tracking tools
even give you code-level details and a snapshot of variables at the moment the
error occurred, speeding up problem-solving.

### 5. Database monitoring

Databases are often the heart of applications. Database monitoring digs deep,
exposing how specific queries perform, how your database is designed, and even
system-level metrics of the database server itself. This arms developers with
the insights needed to ensure databases aren't contributing to slowdowns.

### 6. Digital experience monitoring (DEM)

This puts a magnifying glass on how your application performs from the
perspective of the entity interacting with it, whether that's a human user or
another software component. It focuses on metrics like how fast pages load, how
quickly the application responds to input, and overall system reliability
(uptime vs. downtime).

DEM typically uses two key techniques:

- **Real-user monitoring (RUM)**: RUM tracks the actual experiences of real
  users as they navigate your application. This provides invaluable insights
  into how your system performs in the real world.

- **Synthetic Monitoring**: This involves simulating user interactions, allowing
  you to proactively test performance in different environments, both before and
  after new code is deployed.

## Application Performance Monitoring vs Observability

APM provides a focused view of application performance like a health checkup
that monitors vital signs. However, today's complex applications often require a
more in-depth examination to pinpoint problems.

That's where [observability](https://betterstack.com/community/guides/observability/what-is-observability/) enters the picture.
Observability offers deep technical insights into the entire system, no matter
how complex. While APM provides an overview, observability adds tools like
distributed tracing to uncover the root cause of issues within vast,
interconnected systems.

Think of it this way: Application Performance Monitoring is a crucial component
within a broader observability strategy. To fully understand and manage modern
applications, a comprehensive observability solution is often necessary.

Observability isn't simply a better version of APM; it's a shift driven by the
unique complexities of cloud-based applications. It evolved from the need to
unify what were once separate monitoring tools – APM, [log
management](https://betterstack.com/community/guides/logging/log-management/), infrastructure monitoring, and more. This
unified approach is essential for understanding how the many moving parts of
modern systems work together.

## The benefits of application performance monitoring

Application Performance Monitoring offers a wide range of benefits that support
your business objectives through ensuring a positive user experience. Some of
the key benefits include:

### 1. Enhanced user experience

APM empowers you to identify and troubleshoot slowdowns or errors in your
applications before they frustrate users. This translates to a smoother, more
positive experience which is critical for customer satisfaction and business
success.

### 2. Proactive problem solving

Unlike traditional monitoring that only reacts to outages, APM proactively
identifies potential performance bottlenecks and issues. This allows IT teams to
address problems before they snowball into major disruptions, minimizing
downtime and its impact on users and business operations.

### 3. Faster issue resolution times

APM tools provides detailed data and insights into application performance. When
issues arise, this data helps pinpoint the root cause quickly, enabling
developers to resolve problems faster and get your applications back up and
running swiftly.

### 4. Optimized resource utilization

APM tools track how applications use system resources like memory and CPU. This
data helps you identify areas where resources are being wasted and optimize your
infrastructure to reduce unnecessary costs.

### 5. Improved team collaboration

By providing a unified view of application performance across the entire
technology stack, APM fosters better collaboration between development and
operations teams. Developers gain valuable insights into how code changes impact
performance, while operations teams can proactively address issues impacting
application stability.

### 6. Data-driven decision making

APM allows you to assess the impact of new code and configuration changes in
real-time. By monitoring key metrics before, during, and after deployments, you
can quickly identify and roll back any changes causing performance degradation,
enabling safe and reliable continuous delivery.

### 7. Scaling your application

By revealing how your systems behave under load, APM tools can highlight
potential capacity bottlenecks. You can stay ahead of demand by making informed
decisions about scaling infrastructure or optimizing code to ensure a seamless
user experience as user volume grows.

## Selecting the Right APM Solution

Given the complexities of managing application performance, it's crucial to
choose a scalable solution that simplifies the process and aligns with your
goals. Here's what to look for:

- **Comprehensive distributed tracing**: Opt for a solution that captures 100%
  of your traces without sampling. This full visibility, tracing requests
  end-to-end across frontend and backend services, is essential for effective
  troubleshooting.

- **Dynamic service mapping**: Modern systems change rapidly. Choose a solution
  that automatically maps your services and dependencies in real-time. This
  gives developers a clear, up-to-date picture of your application's structure.

- **Efficient code profiling**: Avoid profiling tools that significantly slow
  down your production environment. Look for a solution that runs continuously
  with minimal overhead, providing code-level insights without compromising
  performance.

- **Intelligent alerting and insights**: Machine learning can significantly
  streamline troubleshooting. Prioritize solutions that use AI to automatically
  pinpoint the root cause of issues and correlate performance problems across
  your system. This can save valuable time and resources.

By selecting a solution with these features, you'll be equipped to maintain
optimal application performance and provide a seamless user experience even
within complex environments.

## Final thoughts

As businesses embrace cloud technologies and container-based systems, the risk
of application downtime increases. This makes application performance monitoring
vital for ensuring consistent software availability – crucial for any business,
but especially SaaS models.

APM tools help DevOps teams understand how new code releases impact performance,
security, and reliability. You can proactively address issues with alerts and
automated actions triggered by specific performance patterns.

This guide likely improved your understanding of APM. By explaining its benefits
for performance, user experience, and business growth, it highlights why APM is
essential in your monitoring strategy.

The next step is simply [choosing the right APM tool for your
needs](https://betterstack.com/community/comparisons/application-performance-monitoring-tools/)!
