True Cost of Failure in Mobile and APM Solutions
August 09, 2013

Jeannie Liou
Crittercism

The mobile enterprise has arrived. In a world where there will be more devices than people on earth by 2017 according to Cisco’s Visual Networking Index (VNI), mobility will continue to transform enterprises in a profound way that cannot be ignored. The idea of being able to interact with customers, prospects, and stay attuned to competitive pressures is not new, but the velocity at which the mobile market is maturing poses a new set of challenges.

One of the main issues enterprises struggle with is identifying how many of their apps actually fail, and how often.

According to a study by Localytics, many apps are downloaded, tried once and then discarded. The first step to measuring an app’s success is tracking downloads, but download stats often provide an incomplete
 and artificially high view. High download numbers always feel like movement in the right direction, but if those customers never open the app or abandon it after a few uses, those high download numbers are ultimately part of a high churn rate.

Though there are several reasons for mobile apps to lose traction with users, one of the biggest problems can be attributed to performance issues. In fact, the average online shopper expects web pages to load in 2 seconds or less. After 3 seconds, up to 40% will abandon the site. 74% of users will abandon a mobile site after waiting only five seconds for it to load.

It goes without saying that once visitors leave, it is very difficult to get them back. 88% of online consumers are less likely to return to a site after a bad experience. More importantly, given that 90% of mobile apps are downloaded on the first day (Mobilewalla), there is no margin for error.

For enterprises, two specific costs that should be taken into consideration are remediation costs and business costs.

Remediation costs are fairly straightforward – these are costs associated with the resources required to resolve a problem. They could be in the form of man-hours (hourly costs), machine, or device costs.

Business costs affect the enterprise directly, such as reduction in customers due to limited access, opportunity cost of taking a different course of action, or even the cost of people drawn away from value adding or profit-making activities. Putting this in an employee contribution perspective, “productivity loss due to application performance issues is estimated at a loss of $42,000 per hour for each user group impacted (IT Management News).”

We can look at a prominent UK bank as a prime example of how the cost of failure for a mobile app can be quantified. The bank was hit by an IT failure recently in May 2013 that left customers unable to access their accounts through the mobile banking app. This follows another IT glitch last year that left the bank with £175m in costs, or nearly $275M. Millions of customers experienced the consequences of a faulty software upgrade that froze the bank’s systems, stopping all payments in and out of accounts.

Given these staggering numbers, enterprises need to factor in best practices for cost of failure elimination by proactively designing, developing and testing for mobile application performance. A reasonable way to reduce failure is by doing more preventative maintenance upfront. Preventative maintenance is a proactive, failure-reducing activity, and is much more cost-effective than maintenance of the repair kind.

Jeannie Liou is Marketing Manager at Crittercism.

Share this

Industry News

January 16, 2020

VAST Data announced the general availability of its new Container Storage Interface (CSI).

January 16, 2020

Fugue has open sourced Regula, a tool that evaluates Terraform infrastructure-as-code for security misconfigurations and compliance violations prior to deployment.

January 16, 2020

WhiteHat Security will offer free application scanning services to federal, state and municipal agencies in North America.

January 15, 2020

Micro Focus announced the release of Micro Focus AD Bridge 2.0, offering IT administrators the ability to extend Active Directory (AD) controls from on-premises resources, including Windows and Linux devices to the cloud - a solution not previously offered in the marketplace.

January 15, 2020

SaltStack announced the availability of three new open-source innovation modules: Heist, Umbra, and Idem.

January 15, 2020

ShiftLeft announced a partnership and deep integration with CircleCI that enables organizations to insert security directly into developer pull requests from code repositories.

January 14, 2020

Containous closed $10 million in Series A funding.

January 13, 2020

JFrog announced the launch of the free ConanCenter, enabling better search and discovery while streamlining C/C++ package management.

January 13, 2020

Perfect Sense launched Gyro - a cloud management tool that mitigates the risks associated with manually provisioning and managing infrastructure, lack of standards in configurations, and unpredictable results from changes to cloud infrastructure.

January 13, 2020

Synopsys has completed the acquisition of Tinfoil Security, a provider of dynamic application security testing (DAST) and Application Program Interface (API) security testing solutions.

January 09, 2020

IT Revolution, the industry leader for advancing DevOps, opened its call for presentations for both DevOps Enterprise Summit 2020 events in London and Las Vegas.

January 08, 2020

Anchore announced the immediate availability of Anchore Enterprise 2.2.

January 08, 2020

TigerGraph announced new functionality and performance for TigerGraph Cloud.

January 07, 2020

Compuware Corporation announced a CloudBees Technical Alliance Partner Program (TAPP) Premier Partnership and new advancements to Topaz that together enable organizations to quickly achieve low-risk, low-cost mainframe modernization by fully leveraging their existing mainframe resources.

January 07, 2020

Allegro A officially welcomes Allegro Trains Agent to the Allegro Trains ecosystem.