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

October 20, 2021

SonarSource added over 5,000 customers in the last 12 months, reaching the 15,000 commercial customers milestone in record time.

October 20, 2021

Actian announced the general availability of its newly released DataConnect 12 integration platform, demonstrating a continued focus on ease of use for complex data integration and data quality.

October 20, 2021

Salt Security announced new capabilities in its next-generation Salt Security API Protection Platform to secure GraphQL APIs.

October 20, 2021

vFunction announces the availability of the vFunction Application Transformation Engine and the expanded vFunction Modernization Platform, with new, advanced capabilities that enable enterprises to automatically assess, analyze, and manage the full modernization and migration process from start to finish.

October 20, 2021

Mage raised a $6.3 million seed round led by Gradient Ventures.

October 19, 2021

Couchbase announced its Couchbase Capella hosted Database-as-a-Service (DBaaS) offering on Amazon Web Services (AWS).

October 19, 2021

Checkmarx announced the launch of the Checkmarx Application Security Platform to help CISOs, AppSec teams, and developers address the growing and dynamic security challenges they face.

October 19, 2021

Tasktop announced Affinity Modeling for model-based integration in Tasktop Hub, helping Agile and DevOps software delivery teams reduce time to market and develop software faster.

October 19, 2021

Morpheus Data is continuing released version 5.3.3 targeted at enterprises trying to manage a complex mix of VMware, Kubernetes, and Public Cloud services.

October 19, 2021

Okta announced the availability of Okta Workflows as a standalone offering for all customers.

October 18, 2021

Red Hat announced a series of updates in its portfolio of developer tools and programs aimed at delivering greater productivity, security and scale for developers building applications on Red Hat OpenShift.

October 18, 2021

Pulumi released a public Registry that enables developers and infrastructure teams to apply “share and reuse” software principles to the modern cloud.

October 18, 2021

Fugue announced support for Kubernetes security prior to deployment.

October 18, 2021

Sysdig announced the addition of cloud security monitoring functionality to the Falco open source software project.

October 14, 2021

Red Hat announced the general availability of Red Hat OpenStack Platform 16.2, the latest version of its highly-scalable and agile cloud Infrastructure-as-a-Service (IaaS) platform.