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i just wanted to know What is the significance of latency in performance testing?

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Latency is one of the key metrics in the performance testing. 

Latency is also known as Time to First Byte - the amount of time from just sending the request until receiving the first packet of the response. So it includes:

  1. Time required to establish a network connection with the application under test
  2. Time required to send request over the wire
  3. Time required to process the request
  4. Time required for response to travel back to the caller

So high latency will indicate problems with networking (not enough bandwidth, improperly configured hardware or software, faulty routers, etc.) impacting in high response times for the end users. 

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