Application performance can be viewed differently by users and administrators. For users, performance means quick response and usability, while administrators focus on efficient network resource usage. Performance is also dependent on application type, with bulk file transfers prioritizing bandwidth over round-trip time compared to transactional applications. Key metrics for measuring performance include round-trip time, goodput, protocol overhead, and bandwidth-delay product. Transactional applications are more sensitive to round-trip time while streaming applications depend more on bandwidth-delay product. Environmental factors like network bandwidth and latency also significantly impact performance.