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AI May Benefit from Data Centers, but Data Centers Need Observability

Ranjan Goel
VP of Product
LogicMonitor

AI continues to shape the digital landscape and its explosion isn't slowing down anytime soon. Businesses innovate and unveil new technologies daily. In fact, we found 81% of enterprises plan to increase AI investments this year, focusing on predictive analytics, automation and anomaly detection.

This surge in AI adoption amplifies the need for robust data center infrastructure to handle the terabytes of data being generated daily. Fortunately, progress is already underway. The US government recently announced a $500 billion joint initiative in collaboration with industry leaders such as OpenAI, SoftBank, and Oracle to expand and modernize data center capabilities across the nation, ensuring the infrastructure can keep pace with AI's rapid growth.

Still, as much as AI will benefit from data centers, data centers need observability solutions to ensure resiliency and sustainability so businesses can operate to their full potential and provide seamless experiences to customers.

Why Observability Matters

Businesses have insurmountable amounts of data across IT infrastructures, and although digital transformation started over 20 years ago, many organizations are still in the process of transferring that data from on-premise solutions to the cloud, which — without the right tools in place — is a recipe for disaster of its own.

By implementing an observability solution, IT teams are given a single pane of glass view into their systems to ensure they remain up and running to reduce downtime — like the real-life scenario we saw play out with the Crowdstrike incident. With observability tools, anomalies within IT infrastructure can be detected faster, so time, resources, and money aren't lost. Coupled with next-generation AIOps tools that deliver actionable insights in order to remediate problems, observability solutions are a one-stop-shop for resilience. Multiple teams from L1 to L2 operations staff can now quickly collaborate during an incident with the same context and data all nicely summarized and root-cause identified through Agentic AI.

As IT practitioners, we know that it takes one small glitch in the system to completely flip business operations on a head, which is why these solutions are so important. Without observability, we might as well be flying blind in day-to-day operations, spending countless hours trying to rectify minor problems that cause gigantic risks. But with observability, the mean-time to resolution (MTTR) is significantly lowered allowing us to focus on mission critical work that's meaningful to our organizations at large.

Observability's Transformative Impact on Data Centers

With 68% of organizations leveraging AI tools for anomaly detection, root cause analysis, and real-time threat detection, a lot of data is being processed, and that data needs a home. Enter: data centers.

Observability comes into play to ensure those data centers remain up and running in the event of an error or software failure. If a data center were to experience an IT disruption, any system or AI that is connected to it may also fail in the process. The downtime could result in lost access to electronic records, decreased employee productivity, revenue loss, damaged customer trust and reputation, and potential compliance violations due to the service disruption.

However, the good news is that 59% of organizations that have implemented observability solutions report exceeding ROI expectations, with faster response times, improved uptime, and enhanced decision-making driving measurable business value.

Observability is a data center's best friend and it's imperative that as data centers increase in size and complexity, the investment stretches into sustainable and resilient observability solutions as well.

What's Next

The role of AI within IT operations is evolving rapidly with the advances in technology and acceptance of AI tools by operations staff. In the next 6 months, Agentic AI-driven observability and AIOps tools will become a must-have for any data center, thus improving their availability and bringing efficiency to the operations.

Ranjan Goel is VP of Product at LogicMonitor

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AI May Benefit from Data Centers, but Data Centers Need Observability

Ranjan Goel
VP of Product
LogicMonitor

AI continues to shape the digital landscape and its explosion isn't slowing down anytime soon. Businesses innovate and unveil new technologies daily. In fact, we found 81% of enterprises plan to increase AI investments this year, focusing on predictive analytics, automation and anomaly detection.

This surge in AI adoption amplifies the need for robust data center infrastructure to handle the terabytes of data being generated daily. Fortunately, progress is already underway. The US government recently announced a $500 billion joint initiative in collaboration with industry leaders such as OpenAI, SoftBank, and Oracle to expand and modernize data center capabilities across the nation, ensuring the infrastructure can keep pace with AI's rapid growth.

Still, as much as AI will benefit from data centers, data centers need observability solutions to ensure resiliency and sustainability so businesses can operate to their full potential and provide seamless experiences to customers.

Why Observability Matters

Businesses have insurmountable amounts of data across IT infrastructures, and although digital transformation started over 20 years ago, many organizations are still in the process of transferring that data from on-premise solutions to the cloud, which — without the right tools in place — is a recipe for disaster of its own.

By implementing an observability solution, IT teams are given a single pane of glass view into their systems to ensure they remain up and running to reduce downtime — like the real-life scenario we saw play out with the Crowdstrike incident. With observability tools, anomalies within IT infrastructure can be detected faster, so time, resources, and money aren't lost. Coupled with next-generation AIOps tools that deliver actionable insights in order to remediate problems, observability solutions are a one-stop-shop for resilience. Multiple teams from L1 to L2 operations staff can now quickly collaborate during an incident with the same context and data all nicely summarized and root-cause identified through Agentic AI.

As IT practitioners, we know that it takes one small glitch in the system to completely flip business operations on a head, which is why these solutions are so important. Without observability, we might as well be flying blind in day-to-day operations, spending countless hours trying to rectify minor problems that cause gigantic risks. But with observability, the mean-time to resolution (MTTR) is significantly lowered allowing us to focus on mission critical work that's meaningful to our organizations at large.

Observability's Transformative Impact on Data Centers

With 68% of organizations leveraging AI tools for anomaly detection, root cause analysis, and real-time threat detection, a lot of data is being processed, and that data needs a home. Enter: data centers.

Observability comes into play to ensure those data centers remain up and running in the event of an error or software failure. If a data center were to experience an IT disruption, any system or AI that is connected to it may also fail in the process. The downtime could result in lost access to electronic records, decreased employee productivity, revenue loss, damaged customer trust and reputation, and potential compliance violations due to the service disruption.

However, the good news is that 59% of organizations that have implemented observability solutions report exceeding ROI expectations, with faster response times, improved uptime, and enhanced decision-making driving measurable business value.

Observability is a data center's best friend and it's imperative that as data centers increase in size and complexity, the investment stretches into sustainable and resilient observability solutions as well.

What's Next

The role of AI within IT operations is evolving rapidly with the advances in technology and acceptance of AI tools by operations staff. In the next 6 months, Agentic AI-driven observability and AIOps tools will become a must-have for any data center, thus improving their availability and bringing efficiency to the operations.

Ranjan Goel is VP of Product at LogicMonitor

The Latest

In MEAN TIME TO INSIGHT Episode 12, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses purchasing new network observability solutions.... 

There's an image problem with mobile app security. While it's critical for highly regulated industries like financial services, it is often overlooked in others. This usually comes down to development priorities, which typically fall into three categories: user experience, app performance, and app security. When dealing with finite resources such as time, shifting priorities, and team skill sets, engineering teams often have to prioritize one over the others. Usually, security is the odd man out ...

Image
Guardsquare

IT outages, caused by poor-quality software updates, are no longer rare incidents but rather frequent occurrences, directly impacting over half of US consumers. According to the 2024 Software Failure Sentiment Report from Harness, many now equate these failures to critical public health crises ...

In just a few months, Google will again head to Washington DC and meet with the government for a two-week remedy trial to cement the fate of what happens to Chrome and its search business in the face of ongoing antitrust court case(s). Or, Google may proactively decide to make changes, putting the power in its hands to outline a suitable remedy. Regardless of the outcome, one thing is sure: there will be far more implications for AI than just a shift in Google's Search business ... 

Image
Chrome

In today's fast-paced digital world, Application Performance Monitoring (APM) is crucial for maintaining the health of an organization's digital ecosystem. However, the complexities of modern IT environments, including distributed architectures, hybrid clouds, and dynamic workloads, present significant challenges ... This blog explores the challenges of implementing application performance monitoring (APM) and offers strategies for overcoming them ...

Service disruptions remain a critical concern for IT and business executives, with 88% of respondents saying they believe another major incident will occur in the next 12 months, according to a study from PagerDuty ...

IT infrastructure (on-premises, cloud, or hybrid) is becoming larger and more complex. IT management tools need data to drive better decision making and more process automation to complement manual intervention by IT staff. That is why smart organizations invest in the systems and strategies needed to make their IT infrastructure more resilient in the event of disruption, and why many are turning to application performance monitoring (APM) in conjunction with high availability (HA) clusters ...

In today's data-driven world, the management of databases has become increasingly complex and critical. The following are findings from Redgate's 2025 The State of the Database Landscape report ...

With the 2027 deadline for SAP S/4HANA migrations fast approaching, organizations are accelerating their transition plans ... For organizations that intend to remain on SAP ECC in the near-term, the focus has shifted to improving operational efficiencies and meeting demands for faster cycle times ...

As applications expand and systems intertwine, performance bottlenecks, quality lapses, and disjointed pipelines threaten progress. To stay ahead, leading organizations are turning to three foundational strategies: developer-first observability, API platform adoption, and sustainable test growth ...