Management: Understanding the Key Concepts and Best Practices
In recent years, cloud computing has emerged as one of the
most transformative technologies in the IT industry. Organizations of all sizes
and industries are increasingly relying on the cloud to achieve greater efficiency,
scalability, and cost savings in their operations. However, as cloud adoption
becomes more widespread, so too does the need for effective cloud performance
management. In this essay, we will explore the key concepts and best practices
of cloud performance management and discuss its importance in optimizing cloud
performance and minimizing downtime.
At its core, cloud performance management refers to the
process of monitoring and optimizing the performance of cloud-based
applications, services, and infrastructure. This includes everything from
monitoring resource utilization and network latency to identifying and
resolving performance bottlenecks and optimizing resource allocation. The goal
of cloud performance management is to ensure that cloud-based systems are
running at their optimal performance levels, delivering the best possible user
experience, and meeting the needs of the organization.
One of the key challenges of cloud performance management is
the complex nature of cloud-based systems. Cloud-based applications and
services are typically composed of multiple components, distributed across
different regions and providers, and interconnected through various APIs and
protocols. This makes it challenging to get a comprehensive view of the entire
system and identify performance issues across the stack. To overcome this
challenge, organizations need to adopt a holistic approach to cloud performance
management, leveraging a range of tools and techniques to monitor and optimize
performance at every layer of the stack.
One of the best practices for effective cloud performance
management is to establish clear performance metrics and KPIs. This includes
identifying key metrics such as response time, throughput, error rates, and
resource utilization, and setting targets and thresholds for each metric. By
doing so, organizations can establish a baseline for normal performance levels
and quickly identify when performance deviates from the norm. This enables them
to proactively address performance issues before they escalate into more
Another best practice for cloud performance management is to
leverage automation and AI/ML technologies. Cloud-based systems generate vast
amounts of data, making it challenging for human operators to monitor and analyze
performance in real-time. By leveraging automation and AI/ML technologies,
organizations can quickly and accurately identify performance issues, diagnose
root causes, and recommend remediation actions. This enables them to respond to
performance issues faster and more effectively, minimizing downtime and
improving user experience.
Cloud Performance Management Market Dynamics
Drivers in Cloud
Performance Management Market
In the dynamics of the Cloud Performance Management market,
an increasing need to efficiently manage the security and performance of the
cloud is the driving force. The threat of cyber intrusions has become more
common and dangerous, as stated by the Federal Bureau of Investigation (FBI),
which investigates cyber-attacks by criminals, overseas adversaries, and
terrorists. According to the Symantec's 2018 Internet Security Threat Report
(ISTR), the number of malware variants increased to 700 million in 2017, more
than double the number of variants in 2016.
The Atlas VPN team has reported a decrease in new malware
samples by 22% in February and 2% in March. However, in Q1 2022, the number of
newly discovered malware threats remained at 29 million, and in April alone, 6
million new malware samples were discovered, bringing the total to 1.3 billion
in 2022. These rising security threats and vulnerabilities have increased the
need to implement efficient security measures on the cloud platform.
Compromised cloud performance can lead to losses for
businesses and consumer dissatisfaction. Hence, cloud monitoring is a crucial
aspect of managing the security and performance of the cloud. It enables the
quick identification of patterns to pinpoint potential threats and
vulnerabilities that may compromise the security of the cloud infrastructure.
Cloud monitoring supervises the cloud infrastructure to continuously assess and
measure the application, data, and infrastructure behaviors for potential
security threats. This ensures that the cloud infrastructure and platforms
function optimally while minimizing the risk of data breaches.
Furthermore, cloud monitoring helps assess the performance
of the cloud infrastructure at a modular level. It evaluates parameters such as
uptime and response rate, which aids in assessing cloud performance to provide
an enhanced customer experience.
Restraints in Cloud
Performance Management Market
As cloud computing becomes increasingly popular, the need
for cloud performance management has grown substantially. Major players in the
tech industry such as Microsoft, Oracle, and HPE are now providing cloud
performance platforms which have evolved from being merely a backup storage
option to an all-encompassing computing platform. However, the rise in
popularity of cloud computing platforms has made them an attractive target for cyber
attackers. As a result, cybersecurity professionals are concerned about the
potential for cyber attacks and data breaches.
Cloud cyber attacks have become more frequent in recent
years, accounting for 20% of all cyber attacks in 2020, making cloud computing
platforms the third most targeted cyber environment. Microsoft, one of the
leading providers of cloud performance platforms, experienced a data breach in
December 2019. This breach exposed 250 million entries including email
addresses, IP addresses, and support case details. According to Microsoft, the
cause of this breach was a misconfigured network server hosting critical
information. While this was not the largest cyber attack, it was still
significant due to the high-profile nature of the target.
Cybersecurity experts have warned that data in the cloud may
be more vulnerable than data stored on on-premises servers. This is due to a
combination of factors, including the complexity of cloud systems and the
potential for lapses on the part of both Cloud Service Providers (CSPs) and
end-users. As such, concerns about cyber attacks and data breaches remain a
major restraint to the widespread adoption of cloud computing platforms.
Emergence of Hybrid Cloud Infrastructure
The rise of hybrid cloud infrastructure presents a unique
opportunity for businesses to increase their computational power and run more
resource-intensive applications through public cloud options. However,
implementing a hybrid cloud environment allows for a straightforward use of
encryption methods to guarantee data security throughout the process. With
several options available for ensuring safer data transfer and storage in a
hybrid cloud environment, organizations can lower long-term costs and free up
budgetary space. Scalability is also made easier and less expensive, enabling
faster growth and revenue generation.
Control is another significant advantage of a hybrid cloud
environment. Unlike entrusting all aspects of an IT infrastructure to a
third-party provider, users can tailor the private side of their cloud model to
their specific needs while assigning other sectors to less critical or
time-sensitive tasks. Properly protected hybrid cloud infrastructure is not
only safe but can also boost a company's overall security profile.
As cloud security threats and vulnerabilities continue to
grow, cloud platforms must implement efficient security measures. Cloud
monitoring is a crucial component of cloud security and performance management,
enabling users to quickly identify patterns and potential threats that may
jeopardize cloud infrastructure protection. Cloud monitoring continuously
assesses and measures the cloud infrastructure to discover any security issues,
thus reducing the risk of data breaches and ensuring optimal performance.
Additionally, cloud monitoring helps evaluate the modular performance of the
cloud architecture by assessing variables such as uptime and reaction time.
This allows for easier assessment of cloud performance and enhances the client
In recent years, the cloud performance management market has
witnessed significant developments and advancements. One of the most notable
developments is the increasing adoption of artificial intelligence (AI) and
machine learning (ML) technologies in cloud performance management. AI and ML
can help organizations identify performance issues and potential security
threats in real-time, enabling proactive measures to be taken.
Another development is the growing demand for cloud-native
performance management solutions. With more businesses moving their operations
to the cloud, there is a need for performance management solutions that are
specifically designed for cloud environments. These solutions offer enhanced
visibility and control over cloud infrastructure and applications, enabling
organizations to optimize performance and reduce downtime.
Moreover, the cloud performance management market has seen
the emergence of new players and partnerships. Many established players in the
market are partnering with other companies to expand their capabilities and
offerings. This has led to the development of new cloud performance management
solutions that are more robust, scalable, and efficient.
In addition, there is a growing focus on cost optimization
in cloud performance management. With the increasing adoption of cloud
services, organizations are looking for ways to reduce costs while maintaining
optimal performance. Cloud performance management solutions are being developed
with cost optimization features that help organizations identify cost-saving
opportunities without compromising performance.
Challenges in Cloud
Performance Management Market
The challenge in the Cloud Performance Management market is
the complexity involved in designing a network that ensures cloud security and
addresses privacy concerns. To address these concerns, user data is stored on
data centers of Cloud Service Providers (CSPs) that follow strict rules against
sharing confidential or important data of users. CSPs ensure that data privacy
is maintained and data centers are secure.
Cloud security comprises control-based technologies and
policies designed to comply with regulations and rules while also safeguarding
data applications and cloud technology infrastructure. Due to the sharing
nature of cloud resources, identity management, privacy, and access control are
essential components of cloud security. Thus, data stored in the cloud must be
As more organizations rely on cloud technology for their
data operations, security and other potentially vulnerable areas have become a
priority. Cloud computing security manages security controls in the cloud and
ensures customer data security, privacy, and compliance with applicable
Organizations are concerned about data privacy and
confidentiality and must adhere to regulations like the General Data Protection
Regulation (GDPR), the Health Insurance Portability and Accessibility Act
(HIPAA), the Payment Card Industry Data Security Standard (PCI DSS), and
others. These regulations require the protection of customer data and impose
harsh penalties for security violations.
Although storing data in the cloud has its benefits, it also
raises significant security concerns for 66% of organizations. Many businesses
lack the knowledge to use cloud computing safely, hindering the growth of the
Cloud Performance Management market. The complexity of designing the cloud
platform adds to these challenges.
During the forecast period, the SMEs segment is expected to
dominate the Cloud Performance Management market. The adoption of cloud-based
solutions and services has been particularly beneficial for small and
medium-sized enterprises (SMEs) as it has helped to improve their business
performance, productivity, and cloud performance. However, the large
enterprises segment is also expected to hold a significant share in the market
due to its affordability and acceptance for emerging technologies.
The major driving factors that favor the adoption of cloud
system management solutions among SMEs include reliability, scalability,
integration, flexibility, and improved productivity. SMEs are defined as
organizations with employee numbers ranging between 1 and 1,000, and they stand
to benefit greatly from understanding business cloud solutions. Cloud computing
technology enables SMEs to compete in a cloud-dominated environment, providing
a level playing field for businesses of all sizes.
While some small and medium-sized businesses have yet to
fully grasp the benefits that cloud solutions can provide, many cloud sellers
are preparing for the expected significant increase in popularity among cloud
services for SMEs and private buyers. The versatility of cloud computing
services is another critical advantage for SMEs, allowing them to respond
quickly to market changes in a global and competitive business environment. The
pay-per-use pricing model of cloud computing services also enables SMEs to
easily scale up or down as needed without significant investments in hardware,
applications, or IT personnel.
In conclusion, cloud operation and orchestration,
governance, and compliance across large as well as small and mid-sized
enterprises are cloud performance-intensive. The Cloud Performance Management
market for SMEs is expected to gain traction as it provides flexibility,
scalability, and reduced costs, making it an attractive option for
organizations of all sizes.
Based on Vertical Retail and Consumer Goods Segment to Grow
at the Highest CAGR During the Forecast Period
The retail industry has undergone a significant digital
transformation, with the power shifting from retailers to consumers. Cloud
computing has played a crucial role in this shift, and retailers are investing
in cloud migration to attract new customers while retaining their existing
customer base. Cost efficiency is a vital aspect of the retail industry, and
cloud infrastructure can be scaled up or down based on the business's needs.
With changing shopping trends, cloud computing enables organizations to scale
up during peak periods such as holidays and scale down during slower periods.
The cloud also provides users with a high-quality user
experience, similar to brick-and-mortar stores. Cloud-based services such as
artificial intelligence-powered chatbots and Buy-Online-Pick-Up-In-Store
(BOPUS) help power a unified customer experience across various channels. In
summary, cloud computing enables an industry-wide unified platform for seamless
communication. With the power of cloud computing, businesses can securely store
confidential information and enable employees to access inventory information
from anywhere, allowing them to make informed decisions.
The vertical retail and consumer goods segment is expected
to grow at the highest compound annual growth rate (CAGR) during the forecast
period. Cloud computing can help retailers in this segment gain a competitive
edge by providing cost-effective solutions and enhancing the customer
experience. With the power of cloud computing, retailers can improve inventory
management, increase supply chain visibility, and provide personalized customer
experiences that drive sales and revenue growth.
During the forecast period, the Asia Pacific region is
expected to experience the highest compound annual growth rate (CAGR) in cloud
advertising. This is especially true in countries such as Japan, where there is
an increasing demand for managed cloud and professional services due to the
developed cloud ecosystem. This growth can be attributed to the migration of
sophisticated big data workloads to cloud platforms, including enterprise
resource planning (ERP) applications. The emergence of single-tenant cloud
servers with API access and the proliferation of open-source technologies have
contributed to the growing acceptance of managed private cloud providers.
Moreover, the cloud is playing an increasingly significant
role in enabling the creation and distribution of Internet of Things (IoT)
applications as the IoT expands. With the explosion of data, more companies in
the Asia Pacific region are rebuilding their networks and implementing cloud
services. Rising urbanization, technological advancements, and government
support for the digital economy through appropriate regulations and compliance
have all contributed to the growth of the cloud performance management market.
When it comes to transferring data to cloud databases,
several security risks need to be considered, such as insecure data migration,
infrastructure security gaps, identity validation and administration errors,
compromised access control security, cloud security architecture and strategy
deficiencies, and unsecured APIs and interfaces. These risks mainly relate to
the protection of data stored in databases. Security examinations are usually
conducted before migrating database activities to the cloud, but most incidents
occur during or after the migration process.
To ensure secure data transfer, best practices should
include the involvement of data governance teams, data backups, encryption, and
safe data porting using VPN or private tunnels. It is also crucial to establish
strict security measures, such as hardening, encryption, and access control,
for any replications or disaster recovery database setups once data has been
transferred to cloud databases. These practices can help prevent data loss or
leakage and ensure data is protected against breaches.
To enhance or expand operations, IT teams can use cloud
performance management to monitor and control cloud performance by specifying
metrics such as latency, operational wait times, CPU and memory power, uptime
and downtime clauses, and other performance indicators. These aspects will
drive the growth of cloud performance management during the forecast period.
According to Symantec's 2018 Internet Security Threat Report
(ISTR), the number of malware variants doubled in 2017 compared to the previous
year. This statistic is taken from the ISTR report.
Dominating Companies in Cloud Performance Management Market
- CA TECHNOLOGIES
- BMC SOFTWARE
- NEW RELIC
- NASTEL TECHNOLOGIES
- SNOW SOFTWARE
- MICRO FOCUS
- LUMEN TECHNOLOGIES
- CORESTACKMORPHEUS DATA
Recent Developments in Cloud Performance Management Market
One notable merger in the cloud performance management
industry is the acquisition of ThousandEyes by Cisco in May 2020. ThousandEyes
provides network intelligence and insights to optimize application delivery and
user experience for cloud-based applications. This acquisition expands Cisco's
network and application performance portfolio and provides enhanced visibility
and analytics capabilities for cloud-based applications.
Another significant merger was the acquisition of SignalFx
by Splunk in October 2019. SignalFx is a cloud monitoring and observability
platform that enables real-time insights into cloud infrastructure and
applications. The acquisition enhances Splunk's capabilities in cloud
monitoring and observability, allowing it to provide a comprehensive platform
for customers to manage their cloud environments.
In September 2021, Datadog announced a partnership with IBM
to provide a unified platform for cloud-based application monitoring and
observability. The partnership integrates Datadog's monitoring and analytics
capabilities with IBM's cloud infrastructure, enabling customers to gain
insights into their applications' performance and optimize their cloud
In January 2021, Dynatrace acquired AI-powered observability
provider, SpectX, to enhance its capabilities in log monitoring and analytics.
SpectX's platform enables users to analyze vast amounts of log data in
real-time, allowing them to identify and troubleshoot performance issues
quickly. The acquisition strengthens Dynatrace's position in the observability
market and expands its capabilities in log monitoring and analysis.
In February 2022, Dynatrace announced the acquisition of
Software Intelligence company, SpectoLabs. SpectoLabs' technology provides
software analysis and visualization capabilities that enable DevOps teams to
identify performance issues and optimize their applications. This acquisition
expands Dynatrace's capabilities in software intelligence and enhances its AI-powered
In January 2022, SolarWinds announced the acquisition of
VividCortex, a provider of database performance monitoring solutions.
VividCortex's technology enables users to monitor and optimize the performance
of cloud databases and improve application performance. The acquisition
strengthens SolarWinds' portfolio in database performance monitoring and
enhances its capabilities in cloud-based environments.
In August 2021, New Relic announced the acquisition of
Kubernetes observability platform, Pixie Labs. Pixie's platform provides
real-time insights into Kubernetes applications and infrastructure, enabling
users to identify performance issues and troubleshoot them quickly. The
acquisition expands New Relic's capabilities in Kubernetes observability and
enhances its AI-powered observability platform.
In May 2021, Broadcom announced the acquisition of
Traceable, a provider of API security and observability solutions. Traceable's
technology enables users to monitor and secure API traffic in cloud-based
environments, providing visibility into API performance and security risks. The
acquisition expands Broadcom's capabilities in API security and observability
and enhances its portfolio in cloud-based environments.
In February 2021, Datadog announced the acquisition of
Sqreen, a provider of application security solutions. Sqreen's technology
enables users to detect and prevent security threats in cloud-based
applications, providing real-time visibility into application security risks.
The acquisition expands Datadog's capabilities in application security and
enhances its AI-powered observability platform.
In conclusion, cloud performance management is a critical
aspect of cloud computing that organizations must prioritize to ensure optimal
performance, scalability, and reliability. By adopting a holistic approach,
establishing clear performance metrics and KPIs, and leveraging automation and
AI/ML technologies, organizations can effectively monitor and optimize cloud
performance, minimize downtime, and deliver the best possible user experience.
As cloud computing continues to evolve, so too will the need for effective
cloud performance management. Organizations that prioritize this area will be
better positioned to achieve their business objectives and stay ahead of the