Milan Hanson, Senior Analyst WEBINAR Introducing The Forrester WaveTM: Application Performance Management Solutions, Q3 2016 Milan Hanson, Senior Analyst October 4, 2016. Call in at 12:55 p.m. Eastern time

Agenda About the APM market Choosing vendors Evaluating vendors Results

Agenda About the APM market Choosing vendors Evaluating vendors Results

Customer obsession transforms IT BT Technologies, systems, and processes to support and transform internal operations Technologies, systems, and processes to win, serve, and retain customers

Customer obsession drives APM value Source: A Customer-Obsessed Operating Model Demands A Close Partnership With Your CIO Forrester report

Agility drives APM value Source: Increase Your Value: Become The Modern, Agile PMO Forrester report

Agility drives APM value Source: Organize And Staff I&O Pros For Successful DevOps Practices Forrester report

Tech complexity drives APM value Cloud adoption Microservices adoption

Three components of performance Attractive Performance content infras-tructure code Easy Reliable

The APM market

. . . gets complicated The APM market SIEM Automation ITSM Continuous X ITOA ITOM Unified monitoring EUM Service mgmt Crash analytics DBMS NPMD NSM Mobile APM Crash analytics

Agenda About the APM market Choosing vendors Evaluating vendors Results

How we chose vendors for the Forrester Wave Invited 26 from our vendor landscape report Selected 14 that: Declare an APM solution Satisfy Forrester APM Reference Model Exhibit mindshare in the market Own customer base >200 Earn APM annual revenue above $85M Show CAGR (last fiscal year) above 10%

Agenda About the APM market Choosing vendors Evaluating vendors Results

The Forrester Wave methodology Selected vendors participated in a kickoff call to review the Forrester Wave process. Forrester developed initial evaluation criteria and allowed vendor feedback. Vendors responded to evaluation criteria in the form of a questionnaire about their current offering, strategy, and market presence. Forrester conducted briefings with all vendors to supplement questionnaire responses.

The Forrester Wave methodology (cont.) Forrester requested three client references from each vendor for questionnaire survey. Forrester considered vendor responses and client reference responses to establish initial scores for vendor review. Vendors responded to scoring for fact-check and supplemental/corrective data. Forrester made appropriate adjustments based on the feedback.

Criteria emphasis Evenly split across current offering and strategy Emphasize CX, analytics, and apps Align with BT Innovate Presence Size Growth

The final Forrester Wave graphic

Agenda About the APM market Choosing vendors Evaluating vendors Results

Current offering attributes: app monitoring (20% of score): variety and flexibility of approaches Compiled-in monitoring for many languages App monitoring via wire data Agent monitors apps by observing. Monitor apps by wrapping or injecting Monitor APIs of which apps are built Wildcards: mobile versus desktop, app versus browser Wildcards: extent of app ownership

Current offering attributes: CX monitoring (20% of score): accuracy and proximity — get close to the user Real users, real transactions, on the users’ real devices Synthetic transactions on real devices Device impact on performance Last mile: Wi-Fi or carrier WAN/cloud/internet latency Behind the firewall: HW & SW infrastructure

Current offering attributes: analytics (20% of score): so many ways to apply insight Faster problem solving: e.g., prioritize action, suggest root cause, reduce MTTR Fewer problems to solve: e.g., predict problems for prevention or minimization Accelerate problem fixes: e.g., offer (or run) known past fixes Move up: shift from technology focus to CX and business impact Integrate: accept data easily, export insight effectively

Current offering attributes: other LESS DIFFERENTIATION ON THESE CRITERIA Dynamic transaction topology 5% All vendors present application transactions and their components with scaling and auto-adjust. Leaders also raise the view to customer transaction (multi-app) and even customer session (multitransaction). Dynamic health overlay All vendors present application, service, or customer experience health. Leaders also translate that to business/financial health. Infrastructure (general) All vendors monitor some infrastructure, and none monitors everything. Leaders make it easy to extend monitoring for whatever you have, by a variety of means. Infrastructure (off-prem) 10% All vendors monitor transaction steps through off-prem infrastructure (e.g., cloud). Leaders also monitor off-prem resources as if they were local; and going further monitor orchestration (spin-up and tear-down). Infrastructure (containers) All vendors monitor transaction steps through off-prem infrastructure (e.g., cloud). Leaders also monitor off-prem resources as if they were local; and going further monitor orchestration (e.g., spin-up and tear-down). Presentation All vendors present navigable dashboards. Leaders also offer reports, dashboard views with navigation (programmatic access), export of data/insights to other tools, and a variety of views: physical map, logical map, graphs, charts, and even old-fashioned tables/lists of events and alarms.

Strategy attributes: vision — BT (40% of score): alignment with Forrester BT vision Focus on winning, serving, and retaining customers. All vendors’ visions aim toward presenting technology (services, apps, transactions) whose value to the customer must be interpreted. Leading vendors’ visions extend beyond technology to reduce or eliminate the interpretation and directly present CX and business impact.

Strategy attributes: vision — market leadership (50% of score): breakaway vision (other than Forrester BT vision) All vendors strategize to tune and incrementally improve what they do today. Digital disruption shows that to lead they must do more. Leaders set bold direction. Leaders revolutionize their industry by creatively applying emerging technologies such as: Digital experience, digital business Social influence Continued cloudification, containerization Advances in mobility (e.g., IoT, augmented reality) Advanced analytics

Strategy attributes: corporate strategy (10% of score): commitment to APM Inconclusive but noteworthy, hence low weight APM invisible in corporate strategy deserves caution — this vendor’s APM strategy could change dramatically on short notice. APM positioned in corporate strategy suggests commitment — but just “one of many” business units. APM as corporate strategy is a full-on commitment — this vendor’s continued existence depends on APM.

Next steps Understand that every vendor in this Forrester Wave is top-notch. Read the report for details on each vendor. Use the companion spreadsheet to adjust the weights to your needs and priorities.

Milan Hanson +1 617-613-8924 mhanson@forrester.com