Service model creation using monitored data of the performance management tool

A computer-implemented method for updating a service model that defines entities in an enterprise's computing environment, comprising:

• (a) receiving a message from a monitoring tool residing in the computing environment, where message encapsulates data indicative of performance of a given entity in the computing environment;
• (b) comparing, by a service model template engine, the message to a group of templates, where the group of templates define different types of entities which comprise the service model and relationships between the types of entities;
• c) retrieving, by the service model template engine, one or more templates in the group of templates having attributes that match data contained in the message;
• (d) instantiating, by the service model template engine, a dependent entity in the service model and creating a dependence relationship between the dependent entity and the given entity using instantiation rules associated with the retrieved templates, where the service model template engine is executed by a computer processor.