The purpose of an application performance management (APM) tool is to monitor and enhance the performance of software applications. APM tools provide real-time insights into application behavior, user experiences, and backend processes, helping identify issues such as slow response times or errors. By analyzing metrics like transaction speed and resource utilization, these tools enable IT teams to proactively address performance bottlenecks and improve application reliability. Ultimately, APM tools help ensure optimal performance, leading to higher user satisfaction and operational efficiency.