The Enterprise is Ready for the Cloud …

Recently, we here at AppDynamics have seen two major transformations in adoption of the public cloud. First is the adoption of the cloud for production workloads, and second is adoption of the cloud by large enterprises.

Transformation 1: From Dev/Test/QA to Production Workloads

Because dev/test cycles for applications have different capacity requirements at different times, the on-demand computing resources available through the cloud are ideally suited to serve these elastic requirements. But recently we’ve seen a significant transition by customers to run production workloads on AWS and other public clouds. Perhaps there was a trust element in the cloud that has taken some time to solidify. I suppose relentless price cuts in cloud don’t hurt either. But it seems clear that enterprises are embracing the cloud for production workloads.

Transformation 2: From Startups to Enterprises

First adopters of the cloud were primarily startups who did not want to (or could not) lay out the capital investment necessary to stand up their own datacenters. The cloud has afforded many startups the computing capacity, storage, and resources of a major datacenter without the upfront investment. This on-demand computing power broke down many barriers and enabled significant innovation. Now, the late majority — enterprises — are catching on and signing up for the cloud en masse. Not only are these enterprises adopting AWS for new development and innovation, but they are migrating existing applications from on-premises data centers to AWS — and using AppDynamics to help gather valuable pre- and post-migration data about their applications.

Expanded AppDynamics Support for AWS.

In support of these transformations, AppDynamics is making additional investments in AWS. First, we have released new capabilities to support additional AWS native services such as Amazon DynamoDB, Amazon SQS, and Amazon S3, adding to our existing support of Amazon EC2, Amazon CloudWatch, and Amazon RDS. AppDynamics now monitors more AWS native services, providing even greater visibility and control for your applications running on the AWS Cloud.

Second, because we want our customers and potential customers to be successful migrating to AWS, we have launched a special 60-day trial to help customers migrate on-premises production workloads to AWS. Using AppDynamics to instrument on-premises workloads as part of a pre-migration assessment, customers are able to draw accurate, real-time topology maps of their applications, and benchmark the performance of the application in its on-premises state prior to fork-lifting it to the cloud. This visibility gives the enterprise a clear picture of what components can and should be migrated, as well as providing demonstrable data about the actual performance of the existing application. With our unique “compare release” function, customers can visualize on a single screen the pre-migration and post-migration application architecture, as well as the performance of key application transactions.

Try AppDynamics for AWS and we are certain you will see that, like Nasdaq, OMX, and other enterprise customers, the visibility provided by AppDynamics is especially valuable when migrating a platform from your internal infrastructure to the AWS Cloud.

Online Satisfaction Is $ In Your Company’s Pocket

online shopping

This week Target announced that they will now be price matching BestBuy.com, Amazon.com, Walmart.com, and ToysRUs.com’s prices all year-long – not just during the holiday season.  Talk about competitive edge.  “Showrooming” is just one of the latest ways for retailers to make sure that THEY are the ones you spend your money with.  But it doesn’t stop there.

Now that over 39% of all holiday shopping is done online – and the percentage is ever-growing – customer satisfaction is a big tell on how successful a company might be.  FORESEE recognizes this correlation, and has been indexing customer satisfaction since 2005.

Here is my “Spark Notes” version of the Holiday 2012 Index:

What is “Satisfaction Score”?

The “E-Retailer Satisfaction Index” is an analysis of customer satisfaction with 100 of the largest online retailers by sales volume (according to Internet Retailer).  The Index measures the satisfaction of online retail experience during the holiday season by “Satisfaction Scores” – which are extrapolated from 24,000 customer surveys between Thanksgiving and Christmas.

The indicators of customer satisfaction with a retail website are:
– Increased revenues
– Loyalty to the site
– Likely to recommend the retailer to others

And findings show that satisfied customers are:
– 65% more committed to the brand
– 69% more likely to recommend the retailer
– 67% more likely to purchase from the retailer the next time

Naughty vs. Nice Numbers

The U.S. Holiday Edition 2012 Satisfaction Index comes in at an average Satisfaction Score of 78 (on a 100-point scale) – with Amazon scoring the highest (for the second consecutive year) at a score of 88, and Gilt.com scoring 72.  This is a large gap considering that FORESEE estimates every one-point change on the Satisfaction Scale is a 14% change in the log of revenues generated – WOW!

Below are the FORESEE standout retailers based on Satisfaction Score.
Keep an eye out for companies in blue – they are AppDynamics customers!

1. Best of the Best Award (Criteria: Top Score)
– Amazon (See Graph Below)

2. Leaders Award (Criteria: Score ≥ 80)
Screen Shot 2013-01-03 at 4.24.13 PM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

It is awesome to have 4 AppDynamics customers as top satisfaction performers!
Netflix has been a leader 7 out of the 8 years that FORESEE has been indexing Satisfaction Scores.

3. Most Improved Since Last Year Award (Criteria: Increase of 3 points or more)

Screen Shot 2013-01-03 at 2.48.30 PM

 

 

 

 

 

 

 

Besides making the Most Improved Since Last Year list, Overstock has been able to
achieve speedy mean time to resolution, from days or hours down to minutes,
when solving problems in their production environment by using AppDynamics.
See more Overstock.com achievements on video here.

4.  Most Improved Over Time Award (Criteria: Significant Increase over 5 years)

Screen Shot 2013-01-03 at 2.55.19 PM

 

 

 

 

 

 

 

 

 

 

 

 

 

Congratulations to Staples for making the Most Improved Over Time list! It’s great to see
another AppDynamics customer killing it against other big names in retail.

5.
 “Largest Declines Over Time” (Criteria: Significant Decreases over 5 years)
NONE ARE APPDYNAMICS’ CUSTOMERS!
Screen Shot 2013-01-03 at 2.57.42 PM

 

 

 

 

 

So What Does This All Mean?

Screen Shot 2013-01-03 at 3.56.03 PMThe explanations of these findings lie in the retailers’ ability to understand the customers’ expectations.  In a nutshell, if they deliver and exceed customer expectations in online merchandise, functionality, prices, & content, then the retailer satisfaction score will be high.  “Only when they understand this can they begin to prioritize the site enhancements and make business decisions that can generate the greatest return on their investment,” explains the article.  Meeting expectations satisfies the customer – and therefore makes you money.

In this day-in-age, agile releases are the way to differentiate your site and keep up on the competition.  Have you stopped to think, are my agile releases satisfactory for my customer?  (And if you really want to differentiate your site, have you asked, are my agile releases going to exceed my customers’ expectations?)  Moving forward with this in mind will increase your site’s revenues, boost site loyalty, and users will more likely recommend your site to others – who doesn’t want that?!

Don’t be like Gilt.com – falling guilty of not prioritizing the customer.  Build to please, and that will surely make you money.

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See the full Holiday 2012 Edition of FORSEE’s E-Retailer Satisfaction Index here.

*All graphs and facts come from FORESEE E-Retail Satisfaction Index (U.S. Holiday Edition 2012)