Application performance management (APM) is an essential practice for monitoring, analyzing, and managing the performance and availability of software applications, especially within complex microservices environments. The process aims to ensure that applications run smoothly and meet user and business expectations by incorporating proactive monitoring, analysis, and management of both backend and frontend performance. Successful APM implementation involves continuous real-time insights, end-to-end visibility, and a user-centric approach, integrating multiple stakeholders like business experts, developers, and operations teams. Modern APM strategies utilize telemetry data such as traces, metrics, and logs, balancing auto-instrumentation with manual adjustments for critical operations to avoid over-instrumentation and maintain performance. Effective APM practices include setting up real-time dashboards, intelligent alerting, and employing advanced techniques like distributed tracing and synthetic monitoring. Elastic Observability facilitates seamless APM implementation by combining application performance data with logs, metrics, and traces on a unified platform, enabling businesses to optimize performance, reduce latency, and enhance stability, ultimately leading to better business outcomes.