One of the biggest inhibitors to the widespread use of cloud-based applications is user frustration due to poor application performance. Low usage rates clearly have a direct impact on revenue and ROI, so the ability to effectively manage application performance should be a key component of every company’s cloud strategy.
Almost 700 businesses in North America and Europe were independently surveyed to understand whether they are already experiencing the impact of poor application performance in their cloud application deployments, and how this is affecting their cloud strategies going forward.
Key highlights of the survey findings include: • Organizations in North America are losing on average almost $1M per year because of the poor performance of their cloud-based applications. In Europe, the figure is more than $0.75M. • Fifty-eight percent of organizations in North America and 57 percent of organizations in Europe are slowing or hesitating on their adoption of cloud-based applications because of performance concerns. • Ninety-four percent of organizations in North America and 84 percent of organizations in Europe believe that SLAs for cloud applications have to be based on the actual end-user experience, not just service provider availability metrics.
The survey results clearly highlight the growing awareness that IT departments’ ability to guarantee the performance of cloud applications is severely restricted, and that more complex SLAs are required for issues such as Internet connection and performance, end-user experience and others.
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