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How to Explain APM to Your CEO

Sharon Bell

Explaining why your CEO should care about Application Performance Management (APM) is not always an easy task. Your CEO wants to know in as little time as possible what it is, why I need it, and how it works, perhaps in that order.

Here is how to translate APM into CEO-speak and improve your chances of executive buy-in. To better sustain your CEO’s attention, consider adding in your own company-specific examples to show your CEO the bottom line of APM as it relates to your company.

What is Application Performance Management (APM)?

Your CEO wants a high level overview of the concept. Your CEO also wants to understand in what ways APM applies to the company’s specific products, services, marketing initiatives, operational practices, etc.

Try this general definition:

Application Performance Management (APM) is the use of tools and processes required to monitor software applications. APM helps IT detect and correct performance issues as soon as possible.

How it relates to your company:

Let’s say you’re a healthcare company. You might explain to your CEO that in addition to the general definition above, APM is the way you monitor your member portal.

During an open enrollment period when there is a sudden spike in traffic, your APM tool can alert you whenever a specific component of the portal becomes overloaded. You could tell your CEO that this vital intel helps IT get to the source of the problem and correct it sooner, so your new members will experience minimal poor performance accessing the portal for the first time.

Why do I need APM?

This is likely the most important question to your CEO. The CEO is asking you to justify APM and explain why you’re doing it — or why you should.

Remember, justifying an APM investment or improvement also requires you to explain why it is better than current practices and how it will help with your CEO’s bottom line. Time is money to your CEO, so use that fact to your advantage when you discuss how APM can help. Explain that a sound APM solution can enhance security, ensure application stability, and reduce the current cost of management.

General response:

An APM solution will fix or enhance our applications, making them more stable and secure. This will reduce overhead monitoring costs and provide a better opportunity for increased conversions.

How it relates to your company:

An ecommerce company might use a payment software application, A/B conversion testing software, and a mobile CDN solution to optimize customer transactions. With so many different applications running, it can be difficult to accurately protect and diagnose issues on your site without a solid APM solution.

If customers cannot complete transactions, IT needs to know immediately if fault lies with your lagging A/B conversion software loading the page or a compromised payment application, for example. Explain to your CEO that APM tools are essential to keep customers buying from your site and not your competitors’.

How does APM work?

A word of caution here: Your CEO is probably not asking you for technical details on how your proposed end-to-end solution will improve your J2EE monitoring. Your CEO wants to know how it will take fewer resources to reliably monitor application performance, which then promotes a consistent user experience and reduces lost revenue from downtime.

General explanation:

APM tools automatically repair performance and quality issues within our web, streaming and cloud applications or give IT an early warning sign. APM keeps apps running smoothly for our customers and prevents lost revenue due to technical difficulties.

How it relates to your company:

A travel and tourism company might have a custom search application to help vacationers decide where and when to go based on availability. Your CEO sees this application is critical to entice vacationers to buy. Explain that your application performance tool monitors each element of the search application and senses when an element is under stress. Tell your CEO that the APM tool will either ease the data load on the stressed element, or alert IT to the specific problem to be corrected if it cannot be done so automatically.

Final Thoughts

Speaking your CEO’s language and relating APM to your company can help you focus on your own bottom line and get executive buy-in. As Albert Einstein once said, "If you can’t explain it simply, you don’t understand it well enough." Consider defining complex terms beginning with a "[term] is…" structure. This will help you get to the essence of what you really want to convey to your CEO and build the foundation for further discussion.

Sharon Bell is Director of Marketing at CDNetworks.

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In today's fast-paced digital world, Application Performance Monitoring (APM) is crucial for maintaining the health of an organization's digital ecosystem. However, the complexities of modern IT environments, including distributed architectures, hybrid clouds, and dynamic workloads, present significant challenges ... This blog explores the challenges of implementing application performance monitoring (APM) and offers strategies for overcoming them ...

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It never ceases to amaze me when I examine the curricula of specialist courses that there are either no prerequisites, or very minor ones. I feel that that the analogy above makes the case for having general IT knowledge, even for someone who wishes to specialize in an area of IT, such as Cybersecurity or Cloud computing ...

How to Explain APM to Your CEO

Sharon Bell

Explaining why your CEO should care about Application Performance Management (APM) is not always an easy task. Your CEO wants to know in as little time as possible what it is, why I need it, and how it works, perhaps in that order.

Here is how to translate APM into CEO-speak and improve your chances of executive buy-in. To better sustain your CEO’s attention, consider adding in your own company-specific examples to show your CEO the bottom line of APM as it relates to your company.

What is Application Performance Management (APM)?

Your CEO wants a high level overview of the concept. Your CEO also wants to understand in what ways APM applies to the company’s specific products, services, marketing initiatives, operational practices, etc.

Try this general definition:

Application Performance Management (APM) is the use of tools and processes required to monitor software applications. APM helps IT detect and correct performance issues as soon as possible.

How it relates to your company:

Let’s say you’re a healthcare company. You might explain to your CEO that in addition to the general definition above, APM is the way you monitor your member portal.

During an open enrollment period when there is a sudden spike in traffic, your APM tool can alert you whenever a specific component of the portal becomes overloaded. You could tell your CEO that this vital intel helps IT get to the source of the problem and correct it sooner, so your new members will experience minimal poor performance accessing the portal for the first time.

Why do I need APM?

This is likely the most important question to your CEO. The CEO is asking you to justify APM and explain why you’re doing it — or why you should.

Remember, justifying an APM investment or improvement also requires you to explain why it is better than current practices and how it will help with your CEO’s bottom line. Time is money to your CEO, so use that fact to your advantage when you discuss how APM can help. Explain that a sound APM solution can enhance security, ensure application stability, and reduce the current cost of management.

General response:

An APM solution will fix or enhance our applications, making them more stable and secure. This will reduce overhead monitoring costs and provide a better opportunity for increased conversions.

How it relates to your company:

An ecommerce company might use a payment software application, A/B conversion testing software, and a mobile CDN solution to optimize customer transactions. With so many different applications running, it can be difficult to accurately protect and diagnose issues on your site without a solid APM solution.

If customers cannot complete transactions, IT needs to know immediately if fault lies with your lagging A/B conversion software loading the page or a compromised payment application, for example. Explain to your CEO that APM tools are essential to keep customers buying from your site and not your competitors’.

How does APM work?

A word of caution here: Your CEO is probably not asking you for technical details on how your proposed end-to-end solution will improve your J2EE monitoring. Your CEO wants to know how it will take fewer resources to reliably monitor application performance, which then promotes a consistent user experience and reduces lost revenue from downtime.

General explanation:

APM tools automatically repair performance and quality issues within our web, streaming and cloud applications or give IT an early warning sign. APM keeps apps running smoothly for our customers and prevents lost revenue due to technical difficulties.

How it relates to your company:

A travel and tourism company might have a custom search application to help vacationers decide where and when to go based on availability. Your CEO sees this application is critical to entice vacationers to buy. Explain that your application performance tool monitors each element of the search application and senses when an element is under stress. Tell your CEO that the APM tool will either ease the data load on the stressed element, or alert IT to the specific problem to be corrected if it cannot be done so automatically.

Final Thoughts

Speaking your CEO’s language and relating APM to your company can help you focus on your own bottom line and get executive buy-in. As Albert Einstein once said, "If you can’t explain it simply, you don’t understand it well enough." Consider defining complex terms beginning with a "[term] is…" structure. This will help you get to the essence of what you really want to convey to your CEO and build the foundation for further discussion.

Sharon Bell is Director of Marketing at CDNetworks.

Hot Topics

The Latest

There's an image problem with mobile app security. While it's critical for highly regulated industries like financial services, it is often overlooked in others. This usually comes down to development priorities, which typically fall into three categories: user experience, app performance, and app security. When dealing with finite resources such as time, shifting priorities, and team skill sets, engineering teams often have to prioritize one over the others. Usually, security is the odd man out ...

Image
Guardsquare

IT outages, caused by poor-quality software updates, are no longer rare incidents but rather frequent occurrences, directly impacting over half of US consumers. According to the 2024 Software Failure Sentiment Report from Harness, many now equate these failures to critical public health crises ...

In just a few months, Google will again head to Washington DC and meet with the government for a two-week remedy trial to cement the fate of what happens to Chrome and its search business in the face of ongoing antitrust court case(s). Or, Google may proactively decide to make changes, putting the power in its hands to outline a suitable remedy. Regardless of the outcome, one thing is sure: there will be far more implications for AI than just a shift in Google's Search business ... 

Image
Chrome

In today's fast-paced digital world, Application Performance Monitoring (APM) is crucial for maintaining the health of an organization's digital ecosystem. However, the complexities of modern IT environments, including distributed architectures, hybrid clouds, and dynamic workloads, present significant challenges ... This blog explores the challenges of implementing application performance monitoring (APM) and offers strategies for overcoming them ...

Service disruptions remain a critical concern for IT and business executives, with 88% of respondents saying they believe another major incident will occur in the next 12 months, according to a study from PagerDuty ...

IT infrastructure (on-premises, cloud, or hybrid) is becoming larger and more complex. IT management tools need data to drive better decision making and more process automation to complement manual intervention by IT staff. That is why smart organizations invest in the systems and strategies needed to make their IT infrastructure more resilient in the event of disruption, and why many are turning to application performance monitoring (APM) in conjunction with high availability (HA) clusters ...

In today's data-driven world, the management of databases has become increasingly complex and critical. The following are findings from Redgate's 2025 The State of the Database Landscape report ...

With the 2027 deadline for SAP S/4HANA migrations fast approaching, organizations are accelerating their transition plans ... For organizations that intend to remain on SAP ECC in the near-term, the focus has shifted to improving operational efficiencies and meeting demands for faster cycle times ...

As applications expand and systems intertwine, performance bottlenecks, quality lapses, and disjointed pipelines threaten progress. To stay ahead, leading organizations are turning to three foundational strategies: developer-first observability, API platform adoption, and sustainable test growth ...

It never ceases to amaze me when I examine the curricula of specialist courses that there are either no prerequisites, or very minor ones. I feel that that the analogy above makes the case for having general IT knowledge, even for someone who wishes to specialize in an area of IT, such as Cybersecurity or Cloud computing ...