Understanding the business case and ROI of AlertSite Synthetic Monitoring Platform

AlertSite synthetic monitoring platform gives you a global view of your applications’ health and helps you find and resolve availability issues and performance degradations before they impact end users. AlertSite enables you to proactively monitor your APIs, web, mobile and SaaS applications from its independent network of over 340 monitoring nodes spread across the world.

AlertSite offers significant value to different stakeholders in the organizations. With AlertSite, IT/Operations teams spend less time creating monitoring scripts and more time analyzing the results. CIOs and business owners get a unified view of application health that leads to data driven performance improvements.

Operations

  • Easy to set up and use SaaS Solution
  • No Need for scripting or coding to monitor complex transactions
  • Fastest alerting and advanced reporting
  • SLA validation and root cause analysis
  • Seamless Integration with other operations tools like Splunk and Pager Duty

DevOps

  • Reuse functional scripts created in dev/test phase
  • Find problems early in the development cycle
  • Monitor at real browser level. Understand and improve end user experience
  • Improve application stability and release often

CTO/CIO

  • Single view of application and API health
  • Create Dev and Ops collaboration
  • Make your voice heard by being part of our customer advisory board

ROI for IT/Operations

Improved Productivity

Less time spent on creating tests, more time for analysis and perfromance improvements.

Less firefighting

•Engage right people at the right time. Reduced firefighting and shortened MTTR.

Avoiding SLA Violations

Set better SLAs with your clients, and hold your vendors accountable. Reduce costs of SLA violations.

Reduced IT costs

•Premium synthetic monitoring for less. Unified tool for web. mobile, SaaS aaps and APIs.

ROI for Business

Outage Reduction

Find and fix application issues before they impact the end users. Avoid unexpected downtimes and costs associated with them.

Reduced Order Fallout

Advanced transaction monitoring. Improve web perfromance and avoid cart abandonments and order fallouts.

Improved Conversion

Minimize the number of customers that churn through poor perfromance, outages, and transaction failures

Higher customer satisfaction

Provide excellent end user experience across all user endpoints. Improve customer satisfaction.

Enabled CI-CD

Find and fix perfromance issues early in the development cycle. Avoid perfromance issues in production. Accelerate deployment.

Budget Friendly

Unified tool to monitor web, mobile, SaaS applications and underlying APIs. Fits well in the NOC ecosystem.

Improved IT Productivity

Creating Scripts

Creating realistic and all-inclusive monitoring scripts, that capture the actual user’s interaction with the application, is the key to confirming total application performance. Organizations settle for basic up/down monitoring due to lack of skills or time. They frequently end up in situations where the website or application seems available to internal teams, however in reality the slow load times or other performance degradations result in customer dissatisfaction and/or cart abandonment.

Example From The Field

Let’s take an example of a web app which has interactive functionalities such as sign up, log in, add items to cart, checkout etc. On an average, 1 update is made to each process every month.

Programmer/Script writer – 2 @ $60/hr -Take 5 hours each to create a script for the first time
$600
10 business process monitoring scripts
$6000
Script updates per month – 20 hours @ $60/hr
$1200
Scripting expenses per year (new script + updates)
$20,400
Effort Reduction with AlertSite – 80%-90%
90%
Savings Per Year
$18,360

Creating monitors with AlertSite takes only a few seconds and customers see instant value. AlertSite’s proprietary web recorder DejaClick allows recording complex user transactions and converting them in availability and performance monitors without any additional scripting. This drastically reduces monitor creation time and helps operations teams keep up with changes and improvements in the applications. AlertSite customers report 80%-90% reduction in time and efforts required for business process monitoring.

Finding and fixing issues:

Fixing performance problems requires expensive skills and manpower from Application Owners, Architects, DBAs, Networking Teams, Programmers, Application Support, Operations, and Consultants. The process of identifying and isolating problems is often lengthy and unpredictable. Too often, all-hands are called to put out fires. The cost of problem resolution quickly mounts with each stage in the escalation process. Production teams do not have the information they need in order to rapidly pinpoint, isolate and eliminate problems.

In a recent study done by Dun and Bradstreet, 1 in 2 organizations experience on an average 1.6 hours of downtime per week and the average mean time to resolution is 200 minutes/outage. Unplanned application failures can cost organizations $1.25 million to $2.5 billion per year..

Example from the field:

Let’s take the most modest example of an unexpected application failure that takes an hour to resolve.

Line of business owners – 4 people @ $80/hr
$320
Application architects – 2 people @ 120/hr
$240
Application support – 6 people at $50/hr
$300
Developers/Engineers – 4 people @ $60/hr
$240
Operations – 5 people @ $50/hr
$250
Total cost per incident
$1350
Incidents per month
5
Cost per year
$81,000
Time saved with AlertSite 40%-75%
75%
Savings per year
$60,750

AlertSite proactively monitors your web, mobile, SaaS applications and underlying APIs, so you find performance issues before they impact your actual users. AlertSite has the fastest and the most intelligent alerting system. Alerts are directly sent from the monitoring nodes and are directed to the subject matter experts based on the type of the error. AlertSite helps you engage right people at the right time. AlertSite also helps with fault isolation and root case analysis; accelerating recovery and reducing MTTR. AlertSite customers have typically reduced problem resolution time by about 40 – 75%.

Avoiding SLA violation

Modern websites and applications use number of 3rd party components such as content delivery networks, APIs, Ad networks, payment processing functions etc. Service Level Agreements (SLAs) are used as a measure of quality of service for such 3rd party components. SLAs are highly subjective to your business and unique use cases; negotiating and adhering to Service Level Agreements (SLAs) is important to both service providers and consumers. Poorly negotiated SLAs and SLA violations can cost organizations hundreds of thousand dollars in revenue each year.

Example From The Field

Let’s consider an example of a SaaS provider that has SLAs on availability and performance with its vendors. The service level objectives are 99.99% availability and under 4 seconds response time.

Penalty for each SLA violation*
$10000
Support costs followed by SLA violation - 4 people for 5 hours @ $50/hr
$1000
Total cost of SLA violation
$11,000
Number of SLA violations per year
15
Yearly cost
$165,000
Reduction with AlertSite (40%-65%)
65%
Saving per Year
$107,250

AlertSite helps monitor your services proactively. So you understand the performance of your application and set realistic SLAs that are driven by actual data. AlertSite also helps you find and fix application issues before your customers encounter them, so you can avoid SLA violations and related costs.

AlertSite helps service providers and consumers alike : effortlessly set-up smarter SLAs, ensure that the service providers are adhering to the SLAs and hold your vendors accountable for violations.

Outage Reduction

AlertSite minimizes the costs associated with lost business, workforce downtime or reduced productivity by minimizing the number and intensity of outages. The average organization suffers 61 hours of downtime each year (Source: Enterprise Management Associates white paper). There are many potential reasons for unplanned downtime, including operational failures, application failures, component and system failures, site failures, and regional disasters.

According to a Gartner Data Center Survey, 40% of unplanned downtime is caused by operational failures (operator errors); another 40% is caused by application failures; and the remaining 20% is caused by system and component failures, environmental failures, and disasters. As new functionality is continually added to applications, complexity increases and the so does the likelihood of an application failure.

Average cost of downtime (per hour)
$20,000
Average duration of the downtime (hours)
2
Total number of unexpected downtimes per year
10
Reduction in outages with AlertSite
75%
Saving per year
$300,000

AlertSite proactively monitors your applications, and reduces costs associated with outages by 60%-80% by

  • Alerting you on performance issues and anomalies before the problems are noticed
  • Engaging subject matter experts in timely manner
  • Helping with fault isolation and root cause analysis

Improved Conversion

When applications are slow or unavailable, users abandon shopping carts, registrations and searches that could have led to revenue. Employees and partners do not get their jobs done. Dropped transactions lead to loss of revenue, damaged company reputation, and reduced employee productivity. It can also lead to repeated transactions and increased load on the system.

Per a study done by Aberdeen group the average impact of a 1-second page load delay meant a 7% reduction in conversions, 11% reduction in page views and 16% reduction in customer satisfaction. Per IBM’s Holiday 2015 Shopping Report, customers bounce off a website that fails to load within 3 seconds and abandon mobile apps that takes longer than 300ms to complete an action.

Example from the Field

Average number of orders per day
1000
Order fallout due to performance issues
5%
Number of failed orders
50
Average revenue per order
$20
Lost revenue per year
$365,000
Reduction in order fallout (60%-80%) 75%
75%
Savings Per Year
$273,750

AlertSite’s proprietary web recorder DejaClick allows recording complex user transactions such as log-ins, add to cart, checkouts, registration, forms etc. and converting them in availability and performance monitors. All the underlying components of the user transactions are monitored at the real browser level. This enables IT managers / operations teams to measure every transaction 24/7, to compile a complete picture of transaction completion, accuracy and performance. If any step of the transaction fails or doesn’t complete within satisfactory threshold, AlertSite notifies subject matter experts and helps with root cause analysis. AlertSite reduces lost transactions due to performance issues 60-80%, resulting in significant savings for your business.

Reduced Customer Churn

Customer churn is a multi-faceted problem. There are many other reasons why a customers may decide to move away from your services, and application performance issues is one of them. Unavailability, SLA violation or performance issues with applications and websites can result in lost or delayed orders, reduced customer productivity and customer dissatisfaction. Per Gartner, 65% of a company’s business comes from existing customers, and it costs five times as much to attract a new customer than to keep an existing one satisfied.

Example From The Field

Annual revenue per customer (ARPU)
$1000
Total number of customers
10000
Rate of customer churn
8%
Lost customers
800
Customers lost due to application performance issues
400
Lost revenue
$400,000
Reduction with AlertSite (60%-75%)
75%
Saving per year
$300,000

AlertSite reduces churn by helping you proactively find and fix issues before they impact your end uses. AlertSite monitors transactions end to end and alerts experts on potential problems before SLAs are affected. AlertSite enables you to speed up recovery and root cause analysis, so you can minimize the impact on your customers.

Reduced Call Center Cost

Application performance issues and degradations lead to additional burden on the call centers. For instance when there are outages or slowdowns in the self-service portal on the website; then more customers call the call center. Per a 2015 Contact Center Infrastructure report by Avaya and Gartner, it costs organizations anywhere from $4.5 to $12 per minute for live agent calls.

Problems with CRM, ordering and other critical systems increase the cost-per-call since service agents cannot access the applications they need and call duration increases by 100% or more.

Example From The Field

Let’s take a simple example of an unavailable banking application, forcing customers to call the call center

Self-service transactions per day
5000
Calls to call center per day
1000
Portal outage/issues, x hours/per month
30
Increased call load during an outage/performance issue
4700
Cost per call to the call center (avg)
$10
Yearly costs of outage/performance issue
$564,000
Reduction with AlertSite (60%-75%)
75%
Saving per year
$423,000

AlertSite reduces call center costs by proactively monitoring the user experience for all business critical transactions executed from the website/app and immediately alerts subject matter experts in case of issues and slowdowns. AlertSite helps identify root cause to enable rapid resolution and improvements in configuration.

 
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