- All right.
So, before we jump in further
into some of our guests
and into some of the presentations
on the product details
I thought it would be helpful to start out
by giving you a sense for what we've seen
out in the market talking to many of you
and many other large
organizations around the world.
And what we see is what you see here
which is that we have now
all shifted into a new
competitive landscape
where the way
that we actually measure
our competitive strength
is based on the experiences
that are delivered
in our digital applications.
And the expectations
around those applications
have been ever rising higher and higher,
because all of us as individuals
whether we're in our role as employees,
or whether we're in our role as consumers,
we have come to expect
beautifully designed
highly performant simple experiences
in our digital applications.
And that's a bar that's been set for us
by companies that were born
in the cloud design led
digital from their inception,
the Googles, the Ubers,
the Facebooks of the world,
but now it doesn't matter what
industry you're in, right?
If you're a transportation company,
a healthcare company,
financial services company,
retail company, it doesn't matter right.
You now are held to that same bar
because whether you're delivering
applications internally
to your employees or
externally to your customers,
they are expecting as individuals
to have that same beautiful,
highly performing well designed experience
that is effective.
And if you can't deliver it,
you actually become
competitively disadvantaged
from those who can.
So we've done a survey called
the App Attention Index,
where we actually got
some quantitative data
around how important
these experiences are.
These are a few of the highlights here so,
49% of the respondents in the survey
said that they actually switched suppliers
because of a poor digital experience.
Think about that.
Half of people effectively
are willing to leave
because the digital experience
isn't meeting those expectations.
On the other side of that coin,
you've got 50% also
who are willing to pay
more for your service
if it's better than a competitor's right.
So there's the downside
and the upside there.
And we also know from
research that's been done
that if you have even a
hundred milliseconds of latency
on a page load,
that you can lose up to
1% of the sales volume
that you otherwise would have had.
So think about that.
A hundred milliseconds
of latency 1% of sales.
It's enormously expensive
when things don't work right
and you're not delivering
the competitive experiences
that are up to par with
those user expectations
and beating that of your competitors.
And so what is this driving?
It's driving a change in the technologies
that we all rely upon
so that we can actually
deliver these experiences.
We've had historically,
these three sort of epic
shifts in technology
and IT broadly speaking,
from Mainframes to Client/Server
and from Client/Server
to Web technologies,
but none of those technologies
have been able to allow us
to move with the agility and the velocity
that is required for a world
where experience is the
competitive currency.
And the reason for that
is that the way you win
in a world where experience
is the competitive currency
is you have to iterate very, very quickly
with high velocity.
Because one thing that we know
is that executives sitting
in a conference room,
cooking up an experience
and putting it into an application
are going to get it wrong
about 100% of the time.
Right.
The way you actually get
the winning experience
is you iterate very
quickly with user research,
you implement hypotheses
that are informed by that
research quickly in code,
you get the code in front of users,
you have real time data and telemetry
that gives you a view into
what's working and what's not,
you readjust your hypothesis,
you re-implement in code,
and you turn that crank
as fast as you can.
Right, and the more shots on goal,
the faster you can go
through that iterative cycle,
the more quickly you beat the competitors
to what is actually performing
and winning experience
that pleases them, allows them to get done
what they're trying to
accomplish in your app
and produces the winning
business experience.
That is what is driving
the adoption of cloud and micro services.
It offers the promise
as a technology stack
of being able to take
smaller and more agile teams
allow them to take smaller components
of an application experience,
and iterate on it in a very
quick, high velocity way
with those rapid cycle times
that are gonna allow them to
get to the winning experience.
Right, so that's great.
That's the promise of it.
But there's also a downside,
which is those other three
generations of technology
haven't gone away.
We're running large
enterprise organizations
we can't throw away all of
our technology investments
from the past decade or more.
And so we end up with environments
that typically looks something like this.
They're hybrid, they're
multi-cloud, they're distributed
and they're complex.
We may prioritize
putting some of the
experience driven components
of our application
out let's say
in the most modern fastest
moving cloud technologies
where we can iterate quickly
but it may be talking
in the same application
to Client-server or to Web technologies
and even accessing in many
of our organizations data
that is still being
driven out of mainframes.
And in that kind of an environment,
things have to still
work together seamlessly
to deliver that flawless experience.
It's really hard to do
and one of the things that
makes it incredibly hard to do
is the human part of this,
which is that we're running organizations
that still have historical roles
and operating processes.
And so you see situations like this
where you're typically going to have
an app team that is focused
on the application topologies
and the technologies
that are at the upper layers of the stack
and you have infrastructure teams
that are now managing this
complex, diverse array
of different infrastructure
technology and stacks
and they tend to be focused on
those infrastructure technologies
and the workload management of them.
And these two perspectives
that are represented by
these two organizations
actually make it harder for us to move
with the velocity that we need.
And that results in situations
that sometimes look like this,
which is the typical IT War Room,
something's going wrong,
the business has moved
into the application
and you've got something wrong
and people are finger pointing.
Right, there saying,
hey, my system says the data here,
I'm looking good, your systems say,
oh yours is looking good too well,
something must not really be wrong
but, over on the other
side of the hallway,
you've got the business users
who are now prosecuting
their business initiatives
inside your application
and they're pulling their hair out
because the business results are suffering
and they're not able
to achieve the results
that they depend on,
because of problems with
application performance
or application experience.
And the costs when that
happens are unacceptably high.
Right.
We know that about half of organizations
when they have an outage,
it's costing them in hard dollars
a hundred thousand dollars
and almost a quarter are
having incidents that are at
half a million dollars each.
And when you then consider the fact
that in many organizations
that we go in and work with
they're having outages,
as frequently as multiple times per week
in some cases, we've
gone into organizations
that are having outages
multiple times per day
and this doesn't even speak
of the reputational damage
and the user ill will,
that I spoke about earlier
where we know there's an abandonment rate
that you actually are subject
to when your users leave
and actually go speak badly
about your application
not even captured in these numbers.
So it becomes enormously expensive.
So this begs the question of
what do we do about it, right?
Well, we've got to start
working differently.
The operating model of
most of our organizations
when we zoom out to look
at the whole organization
is still often siloed,
between business teams, development teams
and the operations teams.
The problem is
is that when the business
is in the application,
it means the business
initiatives are now coded.
And when the infrastructure
that the operations teams are managing,
is also now being coded
by developers who are
using Cloud technologies
and modern DevOps techniques,
you have to take these three teams
and get them to move together in lockstep
and coordinate with one another.
And this is what we call
BizDevOps as an operating model.
It just expresses this notion
that these previously
separate siloed teams
have to come together in this intimate,
tight loop operating model,
where they make decisions
together, they plan together,
they execute together, they
assess and evaluate together
and they go round and round together
because if they can do that,
they can achieve the velocity
that allows you to iterate
and again get to the winning experience.
If they fail to do it,
you are a laggard and you
face an existential threat
of being disrupted by the competitors
who are able to do this well.
Now when you look at how to
actually make the transition
to that BizDevOps operating model,
you have to start looking
at some of the challenges
within operations,
because even within
just the operations silo
there are sub silos.
And we typically see separate
sub teams for App Ops
and Infra Ops, and Network Ops
and Sec Ops and they're
all typically using
separate tools that they've built up
over what is oftentimes a decade or more
that they're loyal to
and their different sources of truth
with different data sets
that they each believe,
but which don't necessarily correlate
or apply any sort of consistency of a view
across the different teams.
So what we've been doing at AppDynamics
in partnership with Cisco
is beginning to lay the foundation
of solving this problem broadly.
By upgrading these traditional
legacy controllers,
these legacy systems
to modern software
based domain controllers
that bring software
intelligence and smarts
and open data interfaces,
to each of those
traditional control systems
so that data can be
exchanged and correlated
that allows these different
personas within the organization
to still use a tool that's
familiar or of choice,
but to actually see the
same correlated view of data
expressed through their tool of choice.
So that when they show
up in those war rooms
now instead of finger pointing
they're actually looking
at a single shared source of truth,
with correlated data up and down
across the different layers of the stack
that allow them to move
into a higher velocity operating model.
And this is a vision that we have
that we refer to as the
Central Nervous System for IT.
It's the vision that
we announced last year,
it's been a very exciting year
of progress and innovation
and a lot of the rest of
the event we're going
to be sharing with you
quite a bit more detail
around the progress that
we've made over the past year
in building up the strategy
as well as in delivering
and paying off some of the promises
as we continue down the path
of what we believe will
be a 10 year journey
to really fully modernize this system.
