10 Ways IT Performance Management Improves Your Business
Learn why organizations need performance management solutions; this demonstration illustrates SevOne's capability to satisfy that need.
Scott: Okay, good afternoon everybody. Thanks for taking time out of your day to join us, our perhaps even good morning or good evening, depending on where you are in the world right now. My name is Scott, I'll be your host for today's event on the top ways in which performance management improves your business. Whether you are a service provider or if you're enterprise IT performance management solution has a significant impact on your organization's revenues and operations. That's the case that we're going to try to make during today's webinar.
We're going to look to show you some practical examples that illustrate the extent of that impact on your business. A few quick notes just before we begin, we are recording this and will make it available following the event, in case you'd like to share this recording with any of your colleagues back at the office. We also have a lot of statistics and some formulas included in our slides here. You may want to reference them after the fact, so we're going to make those available online. We'll tell you how to access that later. In case you're wondering, yes, we will have a Q and A session at the end here.
If you have any questions that you think of along the way we encourage you please use the Q and A panel in the Webex window. It should be located on the right side of your screen. Chat in your questions at any time and we will try to get to those by the end of the presentation. Certainly if we don't get to your question we will follow up with you after today's event.
Okay, so as I mentioned, my name is Scott Frymire. I'm Manger of Product Marketing at SevOne. My co-presenter today is Steve Mahoney. Steve is our Director of Product Management. Hey Steve. Steve, you also hold the distinction of being employee number 2 here at SevOne, so you've certainly been around for a while.
Steve: Just a little bit.
Scott: Hopefully Steve's insight on network and application performance management will be very valuable for everybody today. First, in the interest of full disclosure, SevOne does provide a performance management solution for both service providers and enterprise IT. Some of the examples that you're going to see today are screen captures from the actual SevOne solution. Now, I will hold the elevator pitch on SevOne until the end of today's presentation because really what I want to focus on right now, the majority of the discussion, will be on tying performance management back to your organization's bottom line. That is what is the real financial impact that a performance management solution delivers.
Now, in thinking about you guys on the call with us today, again, thank you for taking time out of your busy days. I think I can probably segment our audience into 3 groups here. I would guess that some of you may be trying to learn why a performance management solution is so valuable to your organization. Maybe more of you even already know why you need a performance management solution, you certainly get it from a network and operations perspective, but you may be having a hard time justifying it to those who control the budgets and write the checks for your organization.
Then some of you, you probably already have a performance management solution or certain tools in place for monitoring your network and your applications, you might just be interested to learn what does SevOne do that's a little bit different and how do we help you and our customers improve their business. We're going to try to address our topic from all 3 perspectives today, so regardless of where you're coming from we expect this will be a valuable presentation for you.
Now, Steve, I want to pull you in on this discussion right away because, as I said, you've been with the company quite a long time, being employee number 2, and I think that when we talk to perspective customers we often ask organizations that come to us why they feel they need a performance management solution. Steve, I'm wondering in your experience, let's just say the top 3 most frequent responses we get to that question.
Steve: Sure. I think, first and foremost is definitely visibility. The one thing that I get most often whenever I'm talking to a potential customer, or anybody, is they just don't have visibility into their infrastructure from either a device perspective, meaning they've got this new piece of technology that they've dropped in, or they are deploying this new technology, SDNs coming out, and a lot of people are trying to get visibility into that type of new technology that's out there. That's probably the most I've heard people talk about.
Beyond that is it's the whole fault thing. I don't mean fault from the perspective of fault management, I mean fault as in it's the network's fault and they don't want to have all the blame put on them. It's proving that it's someone else's fault, whether it's your mean time to innocence or whether or not you're just proving the application itself is where the trouble is. I think maybe the next step from there would probably be being able to take all that data that we provide and report on it. Yes, I can troubleshoot, I can go in and drill down into how the performance of a particular piece of equipment is doing, but to turn around to management or my executive team and say go in this refined report, this is what the explanation is, or even from a customer perspective if I have a customer that I need to provide that information to.
Let's go with the visibility. We're going to go with the networks being at fault, being able to prove there's no fault, and then reporting on that would probably be my top 3.
Scott: Great, so then you probably agree with me that very rarely do we ever hear a network admin or somebody else come to us and say, "I need to improve my company's revenue and profits"?
Steve: I'd agree and I'd also say nobody would hear that guy considering the loudness of the rack behind him. I don't think they'd hear anything.
Scott: I know all the data center guys always wear ties, as well, right?
Scott: You have to stop making fun of our stock imagery here. The point is, that's really what a performance management solution does. If you focus on the end game, and not just the day-to-day network monitoring and reporting needs that we're all so bogged down in, I think years ago when I started in the technology and software industry, and I'm speaking more from the enterprise IT side right now, enterprise IT at a time, 16, 17 years ago, was considered a bit of a cost center, as necessarily evil, even, in the eyes of many organizations. I think that perception has evolved over the years, to today, where the network and operations teams are expected to not only cut cost and create efficiencies within the business, but they're also there to generate new revenue opportunities, new revenue streams, through innovation and their use of technology.
Let's go ahead and talk about the top ways that, again, a performance management solution impacts your business from a revenue and profit perspective. We might as well start with the most obvious impact that it has, which is to help you avoid network and system downtime. Having a state-of-the-art performance management solution it allows you to immediately detect changes on the network that impact performance and enables you to address the change before any disruption of service can occur. Now, let's consider the far reaching impact of service degradation and downtime.
Downtime certain impacts your company's ability to generate and collect revenue. No doubt about it. As an example, I can point to somebody like Virgin Blue Airlines who, a couple years ago, they suffered an estimated $20 million profit hit when their ticketing system went down. We can even look at our own customers, we have a large pharmaceutical company that we do business with and they have app in their warehouse for picking the drugs off the shelf. If that app fails they can't recognize revenue from drug shipments. They actually use SevOne to monitor that critical app and protect their revenues.
It's not only revenues. It could be your stock price. I think back to the early days at Amazon.com, if they ever went offline for a couple hours it was not uncommon to see their stock drop 25% in a single day, back in the early days. Downtime can certainly result in data loss. It can harm your organization's image and reputation. You can bet that every time Netflix can't serve up on-demand movies and TV their brand takes a hit. Customer loyalty, we're going to talk about this during today's event.
Downtime impacts employee productivity, it impacts employee morale, and even your customer service. The impact of downtime is quite pervasive, but really how much does downtime cost organizations like yours every year? Can we even begin to quantify this? Well, it does depend on your industry and the nature of your business, but most likely it's anywhere from $42,000 to more than $6 million for every hour of downtime your company experiences. Now, where on earth did we get these numbers? The low end is a very conservative projection that was done by Gartner in a study they put together on the average cost to the large enterprise for 1 hour of downtime, $42,000.
On the high end we're focused on studies that are done around large online brokerages. Anytime you're dealing with stock and equities trading, and financial services, the impact can be much more severe. Now if you want to narrow this, it's pretty broad ranged there, $42,000 to $6 million, you want to narrow it a bit let's go ahead and assume that the mean here is most likely between $84,000 and $108,000 US dollars for every hour of network and system downtime. There have been plenty of studies out there, that you can find online, that will confirm this.
Okay, so we know downtime is a costly proposition, but how often do we experience disruption to networks and services? According to Gartner, again, the average large corporation experiences 87 hours of network downtime every year, on average. Sometimes it's not just downtime that affects us, it's slowness of the network that impacts your application delivery, your ability to conduct business at the speed that your business requires. Okay, let's do some simple math here then. Steve, I'm going to ask for your help because you are probably much more the math head than I am.
If we assume $100,000 lost per hour of downtime and, again, I said the most like number is probably somewhere between $84k and $108k, so I'm making it easy for you here Steve, I'm rounding to $100,000 per hour, and if the average downtime per year is 87 hours then we are looking at a cost of how much per year for your average large business each year?
Steve: I really hope this isn't a trick question, but I'm going to go with $8.7 million.
Scott: You are correct, sir. That made it easy. That would add up to $8.7 million per year in downtime cost for the average large business. Okay, Steve, I'm going to get a little tougher on you now. What's the impact of a performance management solution if it can make a dent in that number. Let's assume, right off the bat we can use performance management solution to eliminate 1 out of every 5 events that would lead to service disruption, 20%, and then the remainder of that time if we can decrease mean time to resolution by say 40% for the remainder of the issues, and that's a fairly conservative estimate. We certainly have customers that have put it more around 60% decrease in MTTR, but let's just say 40% to keep it conservative, in this scenario, Steve, how much cost can you actually recapture?
Steve: I'm really glad that you're going to have that slide answered next because I'm not going to take a crack at that one.
Scott: All right, we'll make it easy on you. If you do the math it actually comes out to $4.5 million. That's $4.5 million back in your pocket every year, on average, in regards to revenue, productivity, and related costs by having a performance management solution in place. Now, of course, as I mentioned the cost of downtime varies significantly by industry, so how do we calculate the cost based on your company? I think there are 2 major factors you need to consider, revenue and labor costs. Those are your 2 primary drivers.
Here's a formula, it's generally accepted, to calculate the impact of downtime on your revenue. Lost revenue is your gross yearly revenue divided by your total yearly business hours, multiply that by the percent impact it has on your business and multiply that by the number of hours of downtime you experience. Okay, you can get much more granular with some of the assumptions and calculations here, but if you just need a simple ballpark number to start this is as simple as it gets and it's pretty darn accurate.
It's a starting point to figure out how much revenue is at stake here in regards to the impact of downtime. Of course, like I said, you also need to take labor costs into account. A formula you could use here, very simple, number of people affected times the percent impact to their job, times the average employee cost per hour, times the number of hours of downtime you experience. When I talk about average employee cost per hour, keep in mind, you have to use a fully loaded number there. It's not just your average salary, but when you take into account benefits and related employee costs you probably have to go about 30% higher than simply what the average salary is for your employees.
Okay, so the 2 main factors there. Obviously, there are other unforeseen costs that aren't accounted for in these formulas. I've been on the marketing side of the business for a while and I think any time that company's experience a downtime event if customer satisfaction was damaged in any way you often have a costly special marketing campaign to win back the business or set your customers at ease.
Steve, I don't know, are there other unforeseen costs that maybe we're not talking about here?
Steve: Yeah. The investigative actions. Once there is damage of some sort you're going to have to pull some people in. That's overtime hours. You might even be contractually obliged to pull in a maybe a security team of some sort to go forth and assess damages. There are a lot of additional things that go on after an event that you have to probably pull in that cost.
Scott: Yeah. I can even think of companies who maybe missed critical financial filing deadlines or incurred late delivery charges. There's a number of ancillary impacts that could be considered if you really want to get that granular. I think however you add it up, the main point is it is a significant financial risk you're taking if you don't have a single trusted performance management solution in place. We're talking about one that can immediately detect changes on the network, and one that enables you to address potential issues before the end users are impacted.
It's all about having the data to be proactive. You either want to avert or decrease potential downtime. An investment in network and IT performance management is really far outweighed by the expected cost of downtime and service disruption that people on this call today most likely experience every year. Even if you do have tools in place now, I think having a more state-of-the-art solution can deliver a very quick return when you just consider how much faster you can achieve mean time to resolution.
Steve: It's also the case that there's no calculator that would allow you to have that on the screen at any point in time.
Scott: Again, Steve is poking fun at the stock imagery. Steve, next time I'm going to pass the slide creation to you. All right, so in addition to preventing downtime, how else can a performance management solution impact your business? Well it can help you increase customer acquisition and decrease churn. Essential to retaining customers is the provision of consistent quality service. Whether, again, you're a service provider realm or just in general business. It doesn't matter if you're hosting or if you're managing someone's infrastructure, or providing mobile coverage or granting online access to personal accounts or customer support, performance management solutions allow you to monitor SLEs and ensure that the service promised is what is actually being delivered or received.
We talked about words like customer loyalty, trust, customer confidence, because it's generally accepted that it costs 6 to 7 times more money to acquire a new customer than to maintain an existing one. The last thing we want is a disruption that causes negative sentiment within our customer base or causes churn. That is exactly what companies like, I'll pick on Bank of America for a second, Bank of America get when their services go down. Here are some examples of negative Tweets that were publicly visible when Bank of America was down for days a while back. Things like, "Bank of America's website is down. Been trying to access for 20 minutes, others for over 2 hours. Reason #4 never to do business with BOA", or "Hey, nice. I put all my money in Bank of America last night and now the site's down, I can't direct it." The last one down there, "They blocked my online access. They reset my credit card just because and now the site is just plain down. Bad week for human/bank interact."
I don't mean to pick on one company in particular, there are far too many recent examples besides Bank of America. I think of Amazon web services, Intuit, BlackBerry, Netflix, even Twitter itself, which I'm using to help make an example here, they've experienced plenty of service disruption themselves. I think when you consider it's 6 to 7 times more expensive to acquire new customers than to maintain existing ones a quality performance management solution serves a critical role as a cost savings tools.
On the flip side, Steve, I'm thinking a performance management solution could actually help you acquire new customers as well, correct?
Steve: Sure. I absolutely agree. From the perspective of meta service providers and service providers they have external customers and they have internal customers. I talked about visibility and providing those reports and being able, from the perspective of a managed service provider, to not only contractually oblige an SLA, but then being able to provide visibility to the customer, and that feel good of here's how things are doing, either here's the red-green dashboard that shows you that everything is meeting your criteria, or even revealing the actual data itself and saying this is the data that backs up, this is what we're collecting. That's very key to making new business.
We've seen a lot of our NST customers and SD customers take the data that we're doing and actually do that. I think that's super keen from a new customer perspective. Absolutely.
Scott: Certainly you can go beyond the MSP audience, just in the consumer world, people who are interacting with consumers every day, you need to enforce an expected level of service with the retail customers as well, correct?
Steve: Yes, and that's the cool thing about the way that interactions work between different business units and different entities. You have customers, and whether those customers are from meta service provider or retail enterprise space is concerned, customers are actual consumers, but customers can be internal as well. From this screen I'm glad nobody can actually see any of the text because my lab had some terrible names, but the idea is that with the customers that you have that you're providing the SLA compliance to, you also have SLOs. You have objectives that you need to meet internally, and being able to report on both sides of those is key.
Being able to see that we are nowhere near those SLAs and sticking to that objective is really key to providing the next level view, the green gem, that everything's kosher for the SLAs themselves. I think there's a lot that goes into that.
Scott: All right, so thanks Steve. We're going to move on now to the third way in which performance management impacts a business. One that you may not think of right away, but it is significant, and that's your ability to schedule maintenance at the most opportune times. Again, Steve, when your business operates in a single time zone it seems like Friday night might be a logical time for many to schedule maintenance, if you're looking to minimize the impact of downtime, but what if you're a global company? You're one that's always customer facing?
Steve: Yeah, SevOne itself, we are a global company. I'm positioned here on the West Coast, you guys are on the East Coast, and we have people in the UK and around the world. You can see when the average call time is at its lowest or the average time that your guys are walking out the door so use station is low, but you really need to be able to take different steps of data and overlay them on top of one another and understand when the best time is for you to schedule that downtime, and also who's impacted by that. If you have the right groups of users and devices segmented in such a way that you can say, "Hey when is my lowest point in my day, when is my lowest point in my week", that's really key and data's the way to get there.
Scott: Of course, the thing we're all going to have to remind people when they're doing plan maintenance make sure you turn off this threshold in your performance monitoring solution, right?
Steve: Yeah. Actually, that's another cool thing is being able to say integrate with ticketing systems and other tools where there are systems out there that track tickets for various reasons and that might be considered outside of the performance data that you're getting, but to be able to schedule maintenance within a ticketing system and have it interact with your performance system and say why don't you turn down those thresholds for this 6-hour downtime. You don't want to have the mock dashboard light up whenever we go to do some maintenance and all of our thresholds go haywire, so that's a really good point.
Scott: Great, okay. Let's shake things up a bit. I want to see how many people are still paying attention. I'm going to do a quick pop quiz for everybody. The question is what is the number one cause of network and system downtime, and I'm going to go ahead and open a poll. On your screen you should see the question with your ability to go ahead and click your answer. What is the number one cause in network and system downtime? Is it environmental issues, which would be say natural disaster, temperature, humidity control issues, etc. Human actions, so changes made by humans. Is it hardware failure? Is it system error? Is it application error? Go ahead and answer there, the poll on your screen. I see a number of the responses coming through, so I'm just going to give it about 10 or 15 seconds here and give you a little time to answer.
Steve: Scott, this is where as a marketing guy you should've had the Jeopardy music cued up and ready to go. You missed an opportunity there, man.
Scott: Steve, feel free to hum it yourself. All right, so the results are coming in here. I'll go ahead and close the poll. Actually, it looks like the vast majority of you nailed it. The vast percentages, as provided by a number so studies that have been done, is that by far changes made by humans account for the greatest cause of downtime within any organization, an estimated 60% of both planned and unplanned downtime is caused by human changes. Gartner's validated this as well.
With their prediction, through 2015 they believe 80% of outages impacting mission-critical services will be caused by people and process issues. Okay, so that brings us to the number 4 way in which performance management impacts the business. It helps you ensure the success of what we call change projects. What do we mean by this, what's a change project? Well, it could be something like deploying a new technology in your environment, whether it's a voice over IP deployment, virtualization project, new hardware, could be configuration changes, could be even merger and acquisition activity. There's a battleground that's ripe for failure. There's been plenty of studies that have shown close to 3 out of every 4. As that go through don't achieve the full intended success.
A lot of that is due to cultural issues, but underlying those cultural issues is your ability to bring the organizations together with a consolidated infrastructure. Remote office expansions could be another change project or consolidation of infrastructure. I think of one of our customers, Zurich, who actually adopted a shared services model to help cut costs and grow the business. They actually consolidated, I think it was, 7 different monitoring tools into 1 platform on SevOne to help monitor that new shared services environment. Performance management solutions, they enable you to deploy new technologies and upgrade infrastructure simply and safely, so you can improve your time to market for any new strategy advance or product introduction.
Steve, tell me about ensuring the success of change projects. We mentioned voice deployment being a common initiative that's being undertaken by many enterprises. Could you talk about best practices or how you could use performance management in such a scenario?
Steve: Yeah. Absolutely, the cool thing is voice is a great example and video is out there, and things of that nature, but much like anything else you can put a pattern to it, you can put a process to it, and it really can go a long way. In this example here, we're doing IP SLA tests to remote site. In a voice environment what you want to do is make sure that your network can handle the traffic that you're going to be pushing over once you drop those devices out there, one you get the call load out there, but in every case it's testing beforehand. It's putting together synthetic tests, whether it's jitter, Cisco's IP SLA or another technology measuring that and establishing a baseline, so actually knowing how normal your synthetic tests are and seeing if your network can handle that traffic.
Then the next step of that is during your deployment, it's not just throwing away those synthetic tests, it's keeping necessary data and then actually seeing the normal traffic pursue the actual call volumes and the actual traffic and comparing those methods, so it's not just synthetic testing, the pre-testing and then throwing that away once we actually get the equipment out there and the actual volume out there. It's comparing and contrasting.
You can still keep that synthetic test going and compare that to the actual flow of traffic. That's really where you get your success is measuring against what your synthetic is while it's alongside of your normal traffic.
Scott: Great. Thanks, Steve. I appreciate that. I'm going to take a moment here, I think this is a good time to pass on a little bit of advice that was given to me by a customer I was speaking with the other day about this topic. When we talk about performance management and ensuring the success of projects, and trying to budget and get approval for getting a new performance management solution, one of the things this customer said I should mention on this call today said if you're having trouble getting budget approval. Budget for the performance management solution as part of your deployment project, consider it absolutely necessary to the success of a project, like a voice deployment or maybe you're transitioning to IvP6 or maybe you're doing a large virtualization project, but ensuring the success and monitoring that environment is critical to the project itself.
If you're having a hard time justifying it to the business work it into the business work it into that budget framework. The other thing he pointed out was he said, again, when you're talking about deploying new technology out in your environment, be sure to ask how long does it typically take your vendor to have new devices certified for monitoring because this one customer said in some scenarios with vendors that he's worked with in the past it has taken upwards of 6 to 8 months to get new devices certified, and there's no way you can achieve success and speed to deployment of your new technology initiative if you have to wait 6 to 8 months in order just to monitor it in a live environment.
Yeah, I just wanted to pass that on from a customer who said that he thought that would be helpful.
Steve: I think I'll plug on top of that, one of the things that I think is so necessary for you to do, and this isn't SevOne, this is literally any technology, any vendor you're going to work with because this is how I operate when I'm selecting a vendor, is you should make sure that as agile as you are in the deployment of this new technology, or in the way that you're organization moves, you should make sure the vendor is just as agile as you are. Your change management takes you 3 months to get something through, whether it's a scheduled maintenance window or you're deploying a new technology then your vendor needs to operate in that same time frame.
It's okay that maybe it'll take 3 months to do this new feature, but if it's going to take them 3 month to even certify something or 6 months for them to even certify a new piece of technology that's sad because that means that you're going to miss out on an opportunity where you have to be slowed down in your deployment because of a vendor that you went with. That to me is something that you should look out for.
Scott: Thanks, Steve. That's a good point to add there. All right, one last way that we're going to talk about today in which performance management impacts your business, reason number 5, it's ability to identify over- and under-utilized resources. Identifying an overused infrastructure can help prevent disruption, thereby saving downtime costs and it can be vital to long-term capacity planning. The flip side, knowing what IT assets are being under utilized allows you to reassign and repurpose them in lieu of expending capital for say additional assets or investments.
Now, Steve, I know this is another topic that's near and dear to your heart, so perhaps you can elaborate a bit on using performance management to identify over- and under-utilized resources.
Steve: Sure. Data is my thing, right, I love data analysis. Big data's the hype and everything like that, but big data has been around for a long time. One of the coolest ways, and one of the most appropriate ways I think, data is used is in capacity planning. Capacity planning from both a future looking over utilization and the historical look at the under utilization, but capacity planning itself it goes beyond just is the utilization of the link high. There's more to a device than that. There's the CPU utilization. There's my queue depth. There's the memory utilization. All of those different components go into deciding whether or not I need to help out this device, or drop in a new device, or load balance, or whatever the case may be. That's from an over-utilized perspective.
From an under-utilized perspective you're looking at historical information. You're being able to say whether or not the traffic that's moving over this particular link is appropriate. If an application is supposed to use a certain amount of traffic and you're seeing you're only 5% of the capacity of a link then you know that there's something wrong, and that's troubleshooting, but also understanding the equipment that you have out there is not being utilized to its best capacity. Using data in various different ways is super key to understanding whether or not you're over or under utilized.
Scott: Great. Thanks, Steve. Appreciate that. When you talk about determining under-utilized resources, I think, you're certainly looking at virtualization as a potential option and when it comes to virtualization I think we all understand the financial impact of virtualization projects, right? Here's a quick hitter though, it's in fact your hardware and maintenance costs, your administrator productivity, your floor space and energy consumption, whether you're talking about power consumption or cooling systems, your speed of deployment, being able to quickly ramp up new VMs, utilization headroom, flexibility.
There's all these great benefits of virtualization. Obviously, it brings about significant cost savings, but I think revealing which resources are finding candidates for virtualization is where a performance management solution into play. Steve, what if you're talking about the cost issues, it's not server system virtualization, what if it's traffic capacity issues? What types of ways does that get resolved with a performance management solution?
Steve: Sure. I think what the question leads into is the SDN, the talk about what this movement is of virtualizing more of the core part of the network, as opposed to the end points, the server and the systems that are out there. I think the beauty of that question is it ends up being a lot of the same things. The server virtualization that we started to do for a couple years now has a lot of the same components as we make decisions from network perspective, the routers and things, and switches, that we're considering virtualization it's the same questions. It's hardware and maintenance. It's flexibility.
I can now deploy my infrastructure in such a way that I'm not necessarily ... It's geared towards the traffic that I'm pushing over the network and the traffic isn't geared towards the deployment of my network itself. That sets up a really good baseline for us to determine the network components that we're deciding to virtualize versus just the hardware piece.
Scott: Yeah, again, I think you're saying it's really not about throwing more bandwidth at the problem, but there are a lot of things you could do here when you're looking at traffic issues, right? The bandwidth can be quite expensive.
Steve: Yup, and that's another point. The fact that we can say with a quick research how much it costs to drop another link in. Something we recently looked into was about 100 meg link will give you somewhere between $1,000 and $2,000 a month, and that's just killer. It's harder to see the cost behind these things, but there are many other ways that we can attack a traffic problem, whether it's the identity of the traffic itself, so being able to see what kinds of traffic that I'm pushing across the wire, with performance management tools we have flow data that we collect that we're able to assess that with or people do actual packet capture and things of that nature.
There are other routes you can take, whether it's load-balancing or establishing cues for the different kinds of traffic. Then there are tools out there that are actual devices, like packet shapers, that you can actually see the traffic itself and create much more refined rules around them. I can see that we're going out to YouTube specifically if somebody's hitting up Facebook, and that kind of traffic makes a lot more sense since, from a flow perspective and from many of the other tools that are out there, all we can see is they're hitting up a media hub of some sort, but I can't tell whether or not the marketing video is uploading videos to YouTube or somebody is just spending their lunch time watching ESPN or something of that nature.
There are ways you can attack that problem. It's not just throwing money at more bandwidth. Again, it's all collecting data. It's being able to analyze that and set those kinds of things up that let's you help answer that question better.
Scott: Yeah, you talked about video. I can't help but think how many companies right now are being crushed by live video stream of March Madness games from the office.
Steve: I'll be honest I'm surprised we're holding this conversation because we've been Skyping this week and I had a hard time even getting that through with you.
Scott: All right. Just back to our main point here, there are many ways in which IT performance management improves your business. Some other examples just off the bat I could think of, maybe you're a cable company who's looking to reduce your truck roles, so having a solution like SevOne that actually looks at your CMTS, the signal to noise ratios, maybe your service provider who's engaged in usage-based billing, so assigning infrastructure expenses to internal cost centers or maybe end customers based on consumption, certainly has an impact on the business in the form of improved revenue streams.
Maybe a lot of you guys out there are finding cost savings in supporting to BYOD, bring your own device, policy for the business and having performance management in place to help manage that initiative. There are a number of ways, in addition to what we've talked about today. I'm not going to go through all the 10 ways, I don't want to be misleading with the title. We said top 10 ways, we gave you 5 today and a couple little ancillary things. We actually have a white paper that we're just going to make available for free to everybody on this call today. We'll talk about how to download that.
I think, if I'm not mistaken, when you close out of the Webex today you should see a window that actually allows you to download that white paper, which is top 10 ways performance management improves your business. That has a couple other things that we did not talk about today. In addition, a PDF copy of the slides that were presented today are going to be made available also in that same download window. We may even shoot a follow-up email out to everybody who registered and just attach it to make sure that everybody got that content because we'd love it if you'd share it with other at your organization and provide feedback to us on it.
Okay, so we've touched on some more of the prominent ways performance management impacts the business. We've talked about, obviously, reducing downtime, to reducing your customer churn, better capacity planning, fine tuning your environment, to ensuring the success of change projects and new technology deployments. Before we get to the Q and A portion of the session today, I'll just do a quick elevator pitch on SevOne, in case you're not familiar with us. Who is SevOne, in a nutshell?
SevOne provides, of course, end-to-end performance management for both service providers and enterprise IT, so monitoring of your network, applications, systems, doesn't matter if they're in the cloud or if you're dealing with virtualized environments or hybrid environments, end to end, we monitor it all. We do consider ourselves the fastest, most scalable performance management and reporting platform on the market. It is an appliance-based solution out of the box, has everything you need. When you talk to our customers, some of the things that they say how we stand out from some of the other solutions out there on the market has to do with 3 things, speed, scale, and simplicity of the solution. The 3 S's if you will.
Speed, SevOne is known for having the fastest IT network reporting on the market, bar none. Information that takes other vendors minutes, or even hours, to report on we provide instantly in seconds, regardless of the size of your infrastructure. Instant reports. When it comes to scale we are also unrivaled in our ability to scale with your organization's needs. We have customers who monitor millions and millions of objects on their network and in their infrastructure, across multiple networks. They calculate trillions of baseline analytics every day and we do that with incredible speed and no degradation to service or performance of the system. It is a peer to peer distributed architecture that allows us to scale to the most demanding needs of any service provider or large enterprise.
Then finally simplicity. Again, I mentioned it's an appliance-based solution, so out of the box it has everything you need, in terms of support for all the common protocols and monitoring technologies, whether you're talking about SNMP or netflow, or support for JMX or WMI or nbar. Everything's out of the box. There's no additional software, no additional modules to install. There's no agents, agentless solution. No additional hardware or licensing that needs to be worried about. Everything is very simple, out of the box, ready to go. We've had customers drop a box in and 10 minutes after receiving the box they have it on their network and getting back baselines of normal behavior for their environment, useful information about their infrastructure.
SevOne is known for speed, scale, simplicity. One quote I just wanted to pull out here from one of our customers, because it goes to some of the points were making today, one customer of ours said that when they moved to SevOne they did have an existing network performance management tool in place, but they chose to go with SevOne and they said, "It did the one thing no other vendor could, it saved us hundreds of operation man hours that, in turn, freed us up to work on new innovations for our network." I think this is an important point because the choice of performance management vendor also impacts your operating costs as well.
There are other solutions out there that require a lot of administration time, hardware, maintenance, and I'm confident if you already have tools in place SevOne can reduce the operational man hours required to monitor and manage your entire infrastructure, just like it did for Cory here. In fact, another one of our customers, Comcast, they actually went from tools where they were required to staff 8 full-time employees, who were responsible just for maintaining their performance management solution and when they moved to SevOne they go that down to 1 part-time resource.
It had a huge impact, just the selection of a performance management vendor had a huge impact on their operational costs as well. I'd like to open this up and if there are any specific questions you'd like to chat in the panel on the right-hand side of your screen. I see we have a couple coming in already. Also, again, I want to remind you a couple things before I get to the questions. When this session is over and you close out your Webex window you should be able to access the download for the free white paper and the PDF of these slides from today.
Also, you are going to see a window pop up asking to take a very brief survey, I think it's only like 3 questions, maybe 4, really quick, just provide feedback on today's webinar event. We value your feedback, we appreciate your time. If you would like to suggest a topic that you'd like to see done for a future webinar please give us the feedback, but it's just like one or 2 quick questions takes less than 60 seconds, and we'd appreciate you giving us that feedback.
All right, let's just take a second here to look through the questions and I'll throw these out here in just one second, hold on.
Steve: Scott, I do have a question I think I got while I was talking previously. I think I can take that one quick while you're setting up.
Scott: Sure, Steve. Go ahead.
Steve: The question was specifically about IP SLA. I mentioned the synthetic testing and the question was does SevOne offer any other synthetic testing if IP SLA isn't available, and I'll clarify, I apologize, I mentioned IP SLA, I mentioned Cisco. Plenty of people aren't Cisco only shops. There are other technologies out there, Juniper RPM, Alcatel FFA. Out of the box we do synthetic testing through DNS tests. We do HTTP tests through wget, also proxy ping to check on the ports of the device.
There are plenty of synthetic tests that come out of the box itself, but we also have had engagements with other customers where we were able to take in the Juniper RPM test or the Alcatel test and pull them into our system, through a couple of different means. We have a system called xStats that allows us to take that data in. Short answer is, yes, there are other synthetic testing abilities out there other than just Cisco, and then pulling that into us is able to be pulled up.
Of course, I'm now getting questions immediately against that. I'll answer just 1 or 2 of these and then I'll switch it back to you, Scott, if there's any questions you saw. What about response times if you click into a specific report? Yeah, so pulling that into the IP SLA tests themselves we can do that for pulling in the data from IP SLA. We do have other things that are non SMP. We do IP MP tests that allow you to do response time right out of the gate. It does ping tests and things like that. There are many other synthetic tests that are in there.
We are able to pull in things from Juniper and Alcatel. They have those synthetic tests as well. We don't provision those. We only provision the Cisco piece, but the other tests we do perform as well.
Scott: Great, Steve. A couple other questions. I'm going to throw this one out to you and see if you're able to address it. Does SevOne work alongside SCOM, or would they get in each other's way?
Steve: SCOM, S-C-O-M, I'm not familiar with that acronym actually.
Scott: I believe it's a Microsoft server management tool.
Steve: We have worked with, in terms of Windows infrastructure, we have a plug-in called WMI, which pulls in a lot of the Windows applications snipbits things like that. Microsoft SCOM, I'm not familiar with it directly. We have done integrations with other tools, in terms of collecting data, but if we were able to pull in WMI data from the Windows machines themselves if that competes or conflicts directly with SCOM I'm not positive. I'd have to look into more about what SCOM does.
If it's specifically management of Windows servers, Windows devices, then you'd probably work alongside of it more, it has probably a lot more details about the Windows infrastructure that we're looking at. In terms of pulling in data from Windows devices we do that as well through what is WMI, the Windows management infrastructure.
Scott: Great. Thanks, Steve. Neil, if we didn't answer your question in its entirety we can certainly follow up with you after the event as well and get you some additional detail on that. Steve, there are other questions coming in. Somebody saw that we mentioned packet shaping on one of our slides, are there specific partners we work with on that?
Steve: Packeteer is the one I'm most familiar with, but if there are other packet shaping tools out there, and load balancing tools, and things of that nature, we have certified monitoring on a lot of those, but pulling in data from the Packeteer is something we then had to do from a customer perspective, and that's something we've done before. We generally have good relationships with a lot of these companies. From their perspective, they want to work with as many different organizations as they can as well, it only helps from both perspectives. We definitely had a good relationship with them and some others out there. Sure, I'd love to hear more if there's some others out there.
Scott: Okay, Steve, I'm going to throw one other out here at you. Do you have positive experience installing SevOne Performance Manager on the Cisco UCS in combination with VMware?
Steve: Yeah. You mentioned it's an appliance, SevOne's also available in a VM solution. There's a free download on the website. That'll let you monitor up to 1,000 elements within your network or 1,000 of the interfaces with your network, but the VM solution that we have, we have a much larger VM, and that allows you to go out and install that. I do believe you're able to push that out on Cisco's UCS platform and has a normal VM out there in that normal VM instance.
Some of that is just as simple. You're able to kick that out just like anything else, your customers who have deployed multiple of the VMs, and that's the flexibility. You talked about hardware virtualization, the flexibility to be able to say we've got racks of devices, a rack of normal SevOne appliances behind you we could turn around now with one smaller rack and deploy many more SevOne instances. That's definitely a good option for those who are looking at that hardware virtualization piece.
Scott: Okay, Steve, thanks. Frederick had a question out there, I think I can answer this one pretty easily. Can SevOne provision IP SLA probes provide the community string is known and responder activated? Yes, we can. I'm sorry, Steve, go ahead.
Steve: I said, taking the easy one, Scott.
Scott: There's a lot of questions coming in here that are specific to SevOne. If you have any other questions related to the concept of impacting your business from a financial or ROI perspective we'd certainly like to hear those questions. Although, I think we are actually coming up on the top of the hour here soon. Tell you what, there was one other question here that I think does lead in well to our next slide, and that is is there a way to compare the cost of SevOne, speaking of cost and ROI, versus the cost of downtime?
Certainly we provided the formulas today that will help you determine, if you haven't already gone through this exercise, of what the average cost per hour may be for your organization, or at least give you a good ballpark idea. In regards to SevOne, a couple things, Steve mentioned, we do have a free download of the application on the site. If you want to monitor up to 1,000 objects you can download our software for free.
If you go to SevOne.com, and you can see the red arrow here pointing to the free download. Monitor up to 1,000 objects. There's no time limit on this, it's not a shortened light version of the application, it's the complete version of Sevone, no time stamps on it. It's just basically manage up to 1,000 objects. Also, to address that question, you may be able to read here on this screen capture, on the main navigation of our website, on the top right, there is a link for pricing information.
There's 2 things you can do to get pricing on SevOne, you can fill out an auto quote generator that's a self-directed quote that you can get, or you can certainly engage with us because we like to understand more about your infrastructure and what your needs are, and what projects you're working on, and we can probably give you a much more accurate quote on what something like SevOne, what you'd be looking at for partnering with us.
With that said, if there were any questions, there might of been a couple questions we did not get to during the webinar, I don't want to run everybody's time over, again we will follow up with you offline, but on behalf of Steve and I, and everybody at SevOne, I want to thank you for your time today. If you'd like to reach out to us, I've listed our contact information on the screen here, and I'll keep this up for a couple of minutes, if you need to write anything down. Please don't forget to provide your feedback on this event by answering the quick survey that should pop up on your screen when you exit out of the webinar.
We do appreciate if you take the less than 60 seconds to do that. Again, thank you, and best of luck to you and your business. We hope to see you guys again soon. Take care everybody.
Steve: Bye guys.