APM is expected to be a growth area for bank IT spending

London - 26 March 2012

The leading global provider of specialist Application Performance Monitoring (APM) technology to the world’s financial community, ITRS Group Ltd, is expecting a greater take-up of its sector-specific, tailored approach to APM.

ITRS has long believed that to proactively manage the performance, health and capacity of trading infrastructure an institution needs to monitor everything from an end-to-end business perspective. A monitoring solution which fails to analyse and model the business users’ experience of the trading infrastructure performance is ultimately blind at the point of contact between IT and the business.

To comply with regulations efficiently there must be investment in automation and therefore technology. But to justify the necessary increases in IT budgets there must also be a demonstrable increase in the ROI. Institutions will only be able to measure the ROI through specialised, end-to-end APM solutions.

This is borne out by a specialist Gartner report, written by Will Cappelli, Research VP, and Jonah Kowall, Research Director, which discusses the exponential growth in spending worldwide on APM.[1] Jonah Kowall commented, “With the high demand for Application Performance Monitoring we are seeing additional market opportunities for vendors to focus on specific industry verticals. While many vendors market solutions towards those buyers, there are specific solutions designed from the ground up for those industries.”

ITRS, which has clients across US, Europe and Asia, was recently evaluated as an ‘APM innovator’ by the Gartner report.[2] We believe our special focus on meeting the specific needs of the financial markets, in comparison with other technology providers, makes ITRS a clear candidate to benefit from the huge growth in spending on APM since 2009.

This greater awareness and acceptance of sector-specific APM clearly points towards market growth. This is also reflected in recent research from Celent on IT spending in Banking, which anticipates growth in global IT spending in banking to be US$173.3 billion in 2012.

Jacob Jehger, Senior Analyst at Celent, forecasts that in the Asia-Pacific region corporate bank IT spending is set to increase by 6% to US$59.4 billion in 2012 alone and that regulatory expenditure will continue to grow in North America. IT expenditure in European banks is expected to follow suit, rising to US$59.5 billion during 2013, contributing to a 3.4% global increase in 2014.

Jaroslaw Knapik, Financial Services Analyst at Ovum, reports similar predictions for growth, suggesting that regulatory expenditure in 2012 will push funds in the retail banking sector into technologies which reduce costs, such as risk and performance management.

Kevin Covington, ITRS CEO, commented: “Being named an APM innovator for the financial markets in Gartner’s report is of great significance to us. ITRS will continue to lead in the innovation and support for specialised solutions for the financial, trading and risk management industry. The next few years will see institutions having to address a number of regulatory market needs; of course, our clients realise compliance is not optional, but the real challenge is understanding how best to address these requirements.”

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