Splunk Application Performance Monitoring (APM) is an observability tool designed to monitor application performance and identify issues impacting business KPIs. The product provides distributed tracing capabilities to track requests across microservices architectures. The tool captures and stores 100% of traces, enabling users to search for specific traces based on tag values, errors, or latencies. It generates service maps that automatically highlight problematic services with visual indicators. The Tag Spotlight feature analyzes traces to identify common attributes among problematic requests, whether related to infrastructure, code, or business logic. Splunk APM includes AlwaysOn Profiling for continuous monitoring of CPU and memory consumption in Java, .NET, and Node.js applications. Database query monitoring provides alerts on slow response times and problematic queries for commonly used databases. The platform correlates trace data with profiling information, infrastructure metrics, and log data to support troubleshooting workflows. The product is built on OpenTelemetry standards, allowing users to instrument applications once and route telemetry data to multiple destinations. It operates as part of Splunk Observability Cloud, providing integration with infrastructure monitoring, real user monitoring, synthetic monitoring, and log analysis capabilities. The platform includes AI-guided insights to help identify which microservices are causing issues in complex environments. Users can configure custom tags and control which data gets indexed for cost management purposes.