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The Business Case for

Performance Testing

(2)

Introducing Joseph Ours

About Joseph

Owns development and delivery

of Cohesion's Quality Assurance

and Testing Services

More than 15 years of IT

experience spanning several

industries and roles

Notable success managing

multi-million dollar initiatives

while introducing innovative

solutions for Fortune 1000

companies, resulting in

improved quality, increased

client satisfaction, cost

avoidance, on-time delivery, and

establishing a true team culture

Contacting Me

@justjoehere

[email protected]

614.423.5253

(3)

Why poor performance is worse than a full

blown production outage

1

How better performance drives actual

business revenue

2

How performance affects operating expenses

3

Typical stakeholder expectations of

performance

4

(4)
(5)

2007, 2009, 2011

iPhone Activations

take 3 to 36 hours to

complete

Complaints trended

as top topic on

Twitter, made CNN

and other new outlet

top stories

AT&T reputation

cemented as one that

cannot handle iPhone

Servers overwhelmed

due to concurrent

activation requests

and length of

activation process

(6)

2011

5 days of network

outages globally

$50MM in lost sales

due to outage

Free Tech Support

and Free Apps offered

to customers

Network

overwhelmed with

processing backlog of

data after momentary

switch failure

(7)

Amazon Cloud Service - 2011

North America - East

Region unavailable

for over 11 hours

Sites like Reddit,

Foursquare, and

NYTimes affected

Customers offered

10 days of free credit

Traffic incorrectly

switched to backup

network. Data stores

overwhelmed

network with

read/write operations

(8)

JP Morgan - 2010

874k transactions

held up worth

$132MM

Customers charged

late fees that had

to be reversed

60 hours to resolve

Resulted from code

update

(9)

2010, 2011(twice)

90%+ of users

received page

time-outs on home

page

Users could not

access online

accounts

All attributed to

routine code

changes

*Bank of America Site Suffers, Washington Post, 2011
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Why are Performance Issues Worse

Than Production Outages?

Production Outages

▫ Immediately Known

▫ Outages tend to have singular

root cause

▫ Customers know when its

down

▫ Usually fixed within hours

▫ “Break-Fix” is appropriate, it

breaks, it gets fixed

Performance Outages

▫ Not always immediately

known

▫ Often gives a false sense of

being available

▫ Multiple causes due to

interdependent impacts

▫ Often takes days or weeks to

resolve

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(12)

100

ms

Increased Revenue

by 1%

Improve Page Load

By

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9%

• Traffic increased when

400ms

• Page time decreased

*Source: Yahoo!

Come see

presentation

Come see

presentation

(14)

100ms-400ms

Increased Traffic

by

.2-.6%

Improve Page Load

By

*Source: Google

Come see

presentation

Come see

presentation

(15)

Average Impact of Performance

Improvement

Of the 178+ companies

evaluated, those who

improved application

performance saw…

*Application Performance Management: Getting IT on the C-Level's Agenda, 2009, Aberdeen

Revenue Increase 9%

presentation

Come see

(16)

Revenue Impact of Poor Performance

1 second delay

11 % fewer views

16 % drop in

satisfaction

A site generating

$100k/day

That incurs a

1 second delay

Will lose

$2.5MM/year

*Application Performance Management: Getting IT on the C-Level's Agenda, 2009, Aberdeen

The bottom line

Come see

presentation

(17)
(18)

Slow Sites Generate Calls

56% of online bank

customers would

move to offline

channels to ask a

general account

question

54% of online bank

customers would

move to offline

channels to

complete

transactions

*Application Performance Management: Getting IT on the C-Level's Agenda, 2009, Aberdeen

Slow is a page

taking longer

than 4 seconds to

load

Come see

presentation

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Internal and External Customers

58% Respondents said poor

application performance

lowered

employee

satisfaction

47% indicated that they had

decreased responsiveness to the

needs of external customers

60% external users are not

satisfied with the performance

of business critical applications

32% of companies experienced

damage to their brand

reputation as a result of poor

performing applications

Primary Source: Application Performance Management: Getting IT on the C-Level's Agenda, 2009, Aberdeen Alternate Sources: Multiple

39% customers rank speed as more

important than functionality

57% of online consumers will abandon a

site after waiting 3 seconds for a page to

load.

8 out of 10 people will not return to a

site after a disappointing experience

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Executive Customers – The “C” Level

60% report inability to identify

performance issues before end

users are impacted

Organizations are planning to

increase the number of business

critical applications by 67% over

the next 12 months

41% of CIO’s have issues with rolling

out new applications without them

being performance tested

31% believe virtualization would

further challenge application

performance management

Primary Source: Application Performance Management: Getting IT on the C-Level's Agenda, 2009, Aberdeen Alternate Sources: Multiple

(22)

When you don’t know what your users want - find out what the

public wants

(23)

External Web Page Load Times: <2 seconds

Abandonment: 33% abandon between 1-5 seconds, 56% after 4 seconds

100 percent abandon sites near 1 minute

Internal performance response times: 5 seconds

Web site performance is second only to security in user expectations

39% users say speed is more important than functionality

Mobile users expect better performance than full sites

70% of mobile sites are slower than full sites

Baby Boomers are more impatient than Gen-Y

User EXPECTATIONS

Primary Source: Application Performance Management: Getting IT on the C-Level's Agenda, 2009, Aberdeen Alternate Sources: Multiple

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User Perceptions of Performance

Recalled (1 week

later) Perceived Load

Time

Immediate Perceived

Load Time

Actual Load Time

• 35% slower

than actual

• 15% slower

than actual

User’s perception of performance degrades with

time

*Source: Psychology of Performance, Stoyan Stefanov

Come see

presentation

(25)

Joseph Ours, MBA, PMP

[email protected]

@justjoehere

www.linkedin.com/in/josephours

References

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