Application Performance Management (APM) is a set of tools and practices designed to monitor and optimize the performance of software applications. It helps organizations ensure that their applications run smoothly, providing a better user experience. APM tools track various metrics, such as response times, error rates, and resource usage, allowing teams to identify and resolve issues quickly. By using APM, businesses can gain insights into how their applications perform under different conditions. This proactive approach not only improves application reliability but also enhances overall productivity, leading to increased customer satisfaction and reduced operational costs.