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Don't Get Caught Up In Cloud Monitoring Hype

Dirk Paessler

The cloud monitoring market has been on fire in the early part of 2015, between acquisitions and a VC spending spree. The money is truly flying fast in Silicon Valley and beyond. But money isn’t everything, and while cloud monitoring has its place, it’s not a panacea.
 
It’s easy to get caught up in the hype-cycle, but cloud monitoring startups face some serious headwinds, including the fact that they are solving a problem many businesses simply don’t have. Many of these young companies have solved relatively easy problems – the ability to monitor cloud workloads. They have capitalized on a variety of trends in computing, notably the movement towards cloud applications and the Internet of Things. They have generated much publicity, achieving “next big thing” status, but in many ways they’re missing the point. Hardware matters, LAN matters, and both will continue to matter. No one is saying that moving to the cloud is a bad idea – on the contrary, it makes total sense in many cases, and cloud monitoring has a role. But, not everything can be displaced.

Networks can contain literally millions of switches, servers, firewalls and more – and a lot of that hardware is out of date. Knowing how to monitor everything on the network is critical – it’s more than just being able to connect to the APIs of a few leading cloud providers and call it a day. Businesses rely on hardware, and the simple fact of the matter is most hardware on the planet is old. Cloud monitoring is optimized to handle the latest and greatest, but when it comes down to it networking hardware is both business critical, and in many cases, quite dated.

One of the most talked about topics in monitoring is the Internet of Things, and it is here that cloud monitoring shows its weakness. One of the most exciting aspects of the Internet of Things is its potential to transform the industrial economy. While many focus on how IoT will empower consumers to control their thermostat and refrigerator remotely, the connected factory is truly transformational. And, the connected factory is a perfect illustration of why monitoring is not about cloud, but about a willingness to do a lot of dirty work.

The connected factory will not run on 21st century technology alone. In all industrial businesses, be it manufacturing or energy production, operations are dependent upon legacy hardware, including some systems that are homegrown. SCADA systems are a perfect example. These systems are the operational backbone of the business, and they are expensive to implement – many years have to go by before the costs are amortized. These systems will need to be connected, and it takes deep institutional knowledge and years of hardware experience to do it successfully. Monitoring providers need to offer a way for end users to work with old hardware, be it through custom designed sensors or an easy-to-use template.

Additionally, there are just some processes that require a LAN connection. Factories will never move all workloads to the cloud, it is just not possible. Machines must be connected by secure, LAN connections, over fiber, copper or Wi-Fi, with ultra-high bandwidth and reliability in the five-nines range. Cloud systems simply cannot offer that at present time. No factory owner is going to accept lower availability or connectivity problems that are out of his control. Cloud outages happen, but no one is ever going to walk off the factory floor because Amazon is down.

Network monitoring has required, and will continue to require, “boots on the ground”. Monitoring software needs to be able to communicate with everything, whether it’s AWS or a 25-year-old SCADA system, regardless of connection quality. IT departments need to be able to monitor everything from cloud applications to valves in an oil pipeline or a power station in a remote area. It takes many years of expertise to develop tools that can accomplish this, much more than it takes to link up with an API. Most of the internet is run off of very old servers and switches – understanding the places where monitoring has been is critical to its future.

Dirk Paessler is CEO and Founder of Paessler AG.

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Don't Get Caught Up In Cloud Monitoring Hype

Dirk Paessler

The cloud monitoring market has been on fire in the early part of 2015, between acquisitions and a VC spending spree. The money is truly flying fast in Silicon Valley and beyond. But money isn’t everything, and while cloud monitoring has its place, it’s not a panacea.
 
It’s easy to get caught up in the hype-cycle, but cloud monitoring startups face some serious headwinds, including the fact that they are solving a problem many businesses simply don’t have. Many of these young companies have solved relatively easy problems – the ability to monitor cloud workloads. They have capitalized on a variety of trends in computing, notably the movement towards cloud applications and the Internet of Things. They have generated much publicity, achieving “next big thing” status, but in many ways they’re missing the point. Hardware matters, LAN matters, and both will continue to matter. No one is saying that moving to the cloud is a bad idea – on the contrary, it makes total sense in many cases, and cloud monitoring has a role. But, not everything can be displaced.

Networks can contain literally millions of switches, servers, firewalls and more – and a lot of that hardware is out of date. Knowing how to monitor everything on the network is critical – it’s more than just being able to connect to the APIs of a few leading cloud providers and call it a day. Businesses rely on hardware, and the simple fact of the matter is most hardware on the planet is old. Cloud monitoring is optimized to handle the latest and greatest, but when it comes down to it networking hardware is both business critical, and in many cases, quite dated.

One of the most talked about topics in monitoring is the Internet of Things, and it is here that cloud monitoring shows its weakness. One of the most exciting aspects of the Internet of Things is its potential to transform the industrial economy. While many focus on how IoT will empower consumers to control their thermostat and refrigerator remotely, the connected factory is truly transformational. And, the connected factory is a perfect illustration of why monitoring is not about cloud, but about a willingness to do a lot of dirty work.

The connected factory will not run on 21st century technology alone. In all industrial businesses, be it manufacturing or energy production, operations are dependent upon legacy hardware, including some systems that are homegrown. SCADA systems are a perfect example. These systems are the operational backbone of the business, and they are expensive to implement – many years have to go by before the costs are amortized. These systems will need to be connected, and it takes deep institutional knowledge and years of hardware experience to do it successfully. Monitoring providers need to offer a way for end users to work with old hardware, be it through custom designed sensors or an easy-to-use template.

Additionally, there are just some processes that require a LAN connection. Factories will never move all workloads to the cloud, it is just not possible. Machines must be connected by secure, LAN connections, over fiber, copper or Wi-Fi, with ultra-high bandwidth and reliability in the five-nines range. Cloud systems simply cannot offer that at present time. No factory owner is going to accept lower availability or connectivity problems that are out of his control. Cloud outages happen, but no one is ever going to walk off the factory floor because Amazon is down.

Network monitoring has required, and will continue to require, “boots on the ground”. Monitoring software needs to be able to communicate with everything, whether it’s AWS or a 25-year-old SCADA system, regardless of connection quality. IT departments need to be able to monitor everything from cloud applications to valves in an oil pipeline or a power station in a remote area. It takes many years of expertise to develop tools that can accomplish this, much more than it takes to link up with an API. Most of the internet is run off of very old servers and switches – understanding the places where monitoring has been is critical to its future.

Dirk Paessler is CEO and Founder of Paessler AG.

Hot Topics

The Latest

Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...

The gap is widening between what teams spend on observability tools and the value they receive amid surging data volumes and budget pressures, according to The Breaking Point for Observability Leaders, a report from Imply ...

Seamless shopping is a basic demand of today's boundaryless consumer — one with little patience for friction, limited tolerance for disconnected experiences and minimal hesitation in switching brands. Customers expect intuitive, highly personalized experiences and the ability to move effortlessly across physical and digital channels within the same journey. Failure to deliver can cost dearly ...

If your best engineers spend their days sorting tickets and resetting access, you are wasting talent. New global data shows that employees in the IT sector rank among the least motivated across industries. They're under a lot of pressure from many angles. Pressure to upskill and uncertainty around what agentic AI means for job security is creating anxiety. Meanwhile, these roles often function like an on-call job and require many repetitive tasks ...