Techniques for use in accordance with application performance decomposition are provided which take advantage of the communications protocol used to carry a transaction between application components in a distributed computing network. Specifically, the invention extends the communications protocol by embedding data, such as timestamp and duration measurement data, in the protocol itself, rather than extending or altering the application or transaction data carried by the protocol as in existing approaches. Thus, the invention provides natural correlation of interactions of distributed application components on such transactions without modification to the application or transaction data. Because the correlation is performed in-line with the application component interactions, minimal data management overhead is required, and correlated performance decomposition is made possible in real-time for the transaction. Furthermore, subsequent processing stages of the distributed application can interpret the communications protocol to glean processing durations of previous stages in order to make decisions regarding treatment of the transaction.