What is PerfWatson extension?

During the course of development using IDE we come with situations where it hangs or unresponsive to some actions performed. The actions can be opening a dialog or adding a reference. It can be anything.

So what does this extension do? 

The extension just collects the data and sends back to Microsoft. The Microsoft team  analyses the data and looks for the solutions to make Visual Studio faster.

Every action which reaches the threshold of 2 secs are recorded and sent back to Microsoft.

Cameron McColl the man behind the whole thing explains about the whole process in this video below.