AppDynamics is a software application performance management tool that helps businesses monitor and optimize their applications. It provides real-time insights into application performance, user experience, and system health, allowing organizations to identify and resolve issues quickly. By using AppDynamics, companies can track the performance of their applications across various environments, including cloud and on-premises. The platform offers features like automatic discovery of application components, performance baselining, and detailed analytics, enabling teams to enhance application reliability and improve user satisfaction.