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Enterprise Cloud Observability: Choosing the Right Starting Point

Khushboo Nigam
Oracle

Enterprises operate different combinations of workloads across cloud, hybrid and multicloud environments. For business-critical workloads, teams need to consider monitoring and observability early so they can detect health issues, investigate failures, and understand operational impact.

Organizations place workloads on cloud platforms based on a combination of technical requirements, economics, existing dependencies, organizational standards, and business priorities. Their monitoring priorities therefore depend on what they operate and where those systems run. Those priorities will not look the same for every organization.

The Mixed Cloud Estate Reality

In my work with enterprise teams, I have seen this variation show up in the types of systems they need to observe. Some common estate components and the visibility they may require are listed below.

Image
Oracle

These patterns are not mutually exclusive. A single enterprise may operate several of them, and each may create a different observability need. They may also span hybrid or multicloud operating models, where teams need visibility across cloud boundaries, ownership, service dependencies, and operational consistency.

Common Cloud Observability Starting Points

As workloads and operational questions change, the telemetry that teams prioritize may also change.

Image
Oracle

The Starting Point Also Depends on Who Owns the Question

The starting point may also depend on who is asking the operational question. Infrastructure teams may focus first on resource health and capacity; application teams on latency, errors, and user-facing workflows; database teams on query and service performance; and security or compliance teams on access, audit activity, and configuration changes. These responsibilities vary by organization and frequently overlap, which makes shared context and telemetry correlation important.

Maturity Beyond Telemetry Checklists

Teams can easily fall into the habit of collecting as much telemetry as possible. But observability maturity is not simply the presence of metrics, logs, and traces. A team can collect all three and still struggle to answer basic operational questions. Maturity is better reflected in whether teams can detect meaningful changes, investigate issues efficiently and use telemetry to make operational decisions.

In practice, one question I often ask before suggesting an observability approach is: What workloads are you running, which operations are business-critical, and what do you need to understand when something goes wrong? The answer helps determine which telemetry and capabilities will support the team. Collecting data without a clear purpose can add cost, storage, and noise without improving diagnosis or decision-making.

How to Choose the Right Starting Point

The following questions can help an organization identify an appropriate observability starting point:

  • Which cloud services and business operations are most critical?
  • Which systems generate the most incidents or unanswered operational questions?
  • What types of workloads does the organization operate?
  • Which teams use the telemetry, and what decisions do they need to make?
  • What signals already exist, and which are collected but not actionable?
  • Where is diagnosis slow, and what technical or business context needs to be correlated?

Why the Foundation Still Matters for AI-Assisted Operations

AI is increasingly being used to help teams query telemetry, interpret logs, investigate alerts, and suggest next steps. In my own experience, an AI assistant can reduce the time it takes to understand a group of logs and identify likely issues. Capabilities across observability platforms now include generating queries from natural language, creating visualizations, correlating signals, and investigating alerts. More advanced use cases, such as automated investigation or approved response workflows, are also becoming part of the broader AIOps conversation.

AI assistants and agentic workflows depend on the telemetry available to them. To interpret an issue, connect related events, or recommend an action, they need relevant signals and context from the systems being operated. If that data was never collected, or if the signals cannot be correlated, the AI cannot reliably determine what happened or what should happen next.

Start with the Environment and the Question

There is no single observability starting point that fits every enterprise. The right approach depends on the systems being operated, the teams responsible for them, and the operational questions that matter most. Infrastructure metrics, logs, database signals, audit activity, application telemetry, and distributed traces can all be valuable when they help teams understand and act on what is happening. The strongest observability strategies begin with the environment teams actually operate in and the decisions their telemetry needs to support.

Khushboo Nigam is a Principal Cloud Architect at Oracle

The Latest

While organizations want to take control of their telemetry, building telemetry pipelines from scratch can be a very daunting, complicated task, even when leveraging open-source standards like OpenTelemetry. It requires specialized knowledge across distributed systems, data engineering, and security. This fragmented approach across systems causes higher operational costs; it puts a strain on resources and reduces efficiency as teams have to work with different interfaces and processes ...

For decades, enterprise networks were designed around a simple assumption: work happened inside the office. Applications lived in centralized data centers, employees connected through internal infrastructure, and security focused on protecting the perimeter that surrounded everything ... But the way organizations operate today bears little resemblance to that environment. Cloud platforms host critical applications, employees connect from homes and airports as often as they do from offices, and partners collaborate through shared systems that exist far beyond corporate walls. In short, the corporate network no longer resembles the environment it was designed to protect ...

As an analyst who researches how IT organizations design, build, and operate their networks, I find that network data is a constant source of pain. Network teams struggle with data quality, fragmentation, authority, access, and trust. And these issues undermine everything they try to do. Here are the numbers: Only 45% of network teams are completely confident in the accuracy of their network source of truth, which documents the intent of their network ...

The 2026 Global Data Center Survey from Uptime Institute reveals an industry navigating workforce constraints, escalating outage expenses, even as rising costs remain the top concern for management teams ...

The next observability gap may not be in the code. It may be under the rack. That sounds strange until you think about how AI incidents actually feel in the middle of an investigation ... The application dashboard may be accurate. It may also be stopping at the wrong boundary. AI systems depend on software, but they also depend on a dense physical stack: racks, power paths, thermal margin, maintenance activity and, in many environments, liquid cooling. Those physical dependencies can change slowly before they look like a software incident ...

Certificate expiration is the rare outage you can see coming. Every TLS certificate carries the date it stops working, so the moment it will begin breaking connections is knowable in advance. That's what makes an expired certificate such a frustrating way to lose a service. What's changing now is how often that date comes around ...

Enterprises operate different combinations of workloads across cloud, hybrid and multicloud environments. For business-critical workloads, teams need to consider monitoring and observability early so they can detect health issues, investigate failures, and understand operational impact. Organizations place workloads on cloud platforms based on a combination of technical requirements, economics, existing dependencies, organizational standards, and business priorities. Their monitoring priorities therefore depend on what they operate and where those systems run. Those priorities will not look the same for every organization ...

Top-performing businesses prioritize data-driven decision making, enabling leaders to move from intuition and gut feel towards evidence-based judgment. But that judgment is only sound when the data underpinning decisions is accurate. With incident management, data accuracy is particularly important. Long-term revenue, customer trust, and operational stability depend on high-quality data that enables teams to quickly identify and address the root cause of major incidents. Against this backdrop, governance becomes a critical endeavor to ensure the right data drives the right action ...

In MEAN TIME TO INSIGHT Episode 26, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses network compliance ... 

Most production autonomous agents do not run in a vacuum. They run inside cloud infrastructure: virtual machines, containers, pods, managed clusters or private servers. That is where most operations teams start monitoring. Is the VM alive? Is the container running? Did the pod restart? Is memory stable? Is CPU too high? Did the health check pass? Those signals are useful. They tell you whether the shell around the agent is alive. They do not tell you whether the agent inside is actually operational ...

Enterprise Cloud Observability: Choosing the Right Starting Point

Khushboo Nigam
Oracle

Enterprises operate different combinations of workloads across cloud, hybrid and multicloud environments. For business-critical workloads, teams need to consider monitoring and observability early so they can detect health issues, investigate failures, and understand operational impact.

Organizations place workloads on cloud platforms based on a combination of technical requirements, economics, existing dependencies, organizational standards, and business priorities. Their monitoring priorities therefore depend on what they operate and where those systems run. Those priorities will not look the same for every organization.

The Mixed Cloud Estate Reality

In my work with enterprise teams, I have seen this variation show up in the types of systems they need to observe. Some common estate components and the visibility they may require are listed below.

Image
Oracle

These patterns are not mutually exclusive. A single enterprise may operate several of them, and each may create a different observability need. They may also span hybrid or multicloud operating models, where teams need visibility across cloud boundaries, ownership, service dependencies, and operational consistency.

Common Cloud Observability Starting Points

As workloads and operational questions change, the telemetry that teams prioritize may also change.

Image
Oracle

The Starting Point Also Depends on Who Owns the Question

The starting point may also depend on who is asking the operational question. Infrastructure teams may focus first on resource health and capacity; application teams on latency, errors, and user-facing workflows; database teams on query and service performance; and security or compliance teams on access, audit activity, and configuration changes. These responsibilities vary by organization and frequently overlap, which makes shared context and telemetry correlation important.

Maturity Beyond Telemetry Checklists

Teams can easily fall into the habit of collecting as much telemetry as possible. But observability maturity is not simply the presence of metrics, logs, and traces. A team can collect all three and still struggle to answer basic operational questions. Maturity is better reflected in whether teams can detect meaningful changes, investigate issues efficiently and use telemetry to make operational decisions.

In practice, one question I often ask before suggesting an observability approach is: What workloads are you running, which operations are business-critical, and what do you need to understand when something goes wrong? The answer helps determine which telemetry and capabilities will support the team. Collecting data without a clear purpose can add cost, storage, and noise without improving diagnosis or decision-making.

How to Choose the Right Starting Point

The following questions can help an organization identify an appropriate observability starting point:

  • Which cloud services and business operations are most critical?
  • Which systems generate the most incidents or unanswered operational questions?
  • What types of workloads does the organization operate?
  • Which teams use the telemetry, and what decisions do they need to make?
  • What signals already exist, and which are collected but not actionable?
  • Where is diagnosis slow, and what technical or business context needs to be correlated?

Why the Foundation Still Matters for AI-Assisted Operations

AI is increasingly being used to help teams query telemetry, interpret logs, investigate alerts, and suggest next steps. In my own experience, an AI assistant can reduce the time it takes to understand a group of logs and identify likely issues. Capabilities across observability platforms now include generating queries from natural language, creating visualizations, correlating signals, and investigating alerts. More advanced use cases, such as automated investigation or approved response workflows, are also becoming part of the broader AIOps conversation.

AI assistants and agentic workflows depend on the telemetry available to them. To interpret an issue, connect related events, or recommend an action, they need relevant signals and context from the systems being operated. If that data was never collected, or if the signals cannot be correlated, the AI cannot reliably determine what happened or what should happen next.

Start with the Environment and the Question

There is no single observability starting point that fits every enterprise. The right approach depends on the systems being operated, the teams responsible for them, and the operational questions that matter most. Infrastructure metrics, logs, database signals, audit activity, application telemetry, and distributed traces can all be valuable when they help teams understand and act on what is happening. The strongest observability strategies begin with the environment teams actually operate in and the decisions their telemetry needs to support.

Khushboo Nigam is a Principal Cloud Architect at Oracle

The Latest

While organizations want to take control of their telemetry, building telemetry pipelines from scratch can be a very daunting, complicated task, even when leveraging open-source standards like OpenTelemetry. It requires specialized knowledge across distributed systems, data engineering, and security. This fragmented approach across systems causes higher operational costs; it puts a strain on resources and reduces efficiency as teams have to work with different interfaces and processes ...

For decades, enterprise networks were designed around a simple assumption: work happened inside the office. Applications lived in centralized data centers, employees connected through internal infrastructure, and security focused on protecting the perimeter that surrounded everything ... But the way organizations operate today bears little resemblance to that environment. Cloud platforms host critical applications, employees connect from homes and airports as often as they do from offices, and partners collaborate through shared systems that exist far beyond corporate walls. In short, the corporate network no longer resembles the environment it was designed to protect ...

As an analyst who researches how IT organizations design, build, and operate their networks, I find that network data is a constant source of pain. Network teams struggle with data quality, fragmentation, authority, access, and trust. And these issues undermine everything they try to do. Here are the numbers: Only 45% of network teams are completely confident in the accuracy of their network source of truth, which documents the intent of their network ...

The 2026 Global Data Center Survey from Uptime Institute reveals an industry navigating workforce constraints, escalating outage expenses, even as rising costs remain the top concern for management teams ...

The next observability gap may not be in the code. It may be under the rack. That sounds strange until you think about how AI incidents actually feel in the middle of an investigation ... The application dashboard may be accurate. It may also be stopping at the wrong boundary. AI systems depend on software, but they also depend on a dense physical stack: racks, power paths, thermal margin, maintenance activity and, in many environments, liquid cooling. Those physical dependencies can change slowly before they look like a software incident ...

Certificate expiration is the rare outage you can see coming. Every TLS certificate carries the date it stops working, so the moment it will begin breaking connections is knowable in advance. That's what makes an expired certificate such a frustrating way to lose a service. What's changing now is how often that date comes around ...

Enterprises operate different combinations of workloads across cloud, hybrid and multicloud environments. For business-critical workloads, teams need to consider monitoring and observability early so they can detect health issues, investigate failures, and understand operational impact. Organizations place workloads on cloud platforms based on a combination of technical requirements, economics, existing dependencies, organizational standards, and business priorities. Their monitoring priorities therefore depend on what they operate and where those systems run. Those priorities will not look the same for every organization ...

Top-performing businesses prioritize data-driven decision making, enabling leaders to move from intuition and gut feel towards evidence-based judgment. But that judgment is only sound when the data underpinning decisions is accurate. With incident management, data accuracy is particularly important. Long-term revenue, customer trust, and operational stability depend on high-quality data that enables teams to quickly identify and address the root cause of major incidents. Against this backdrop, governance becomes a critical endeavor to ensure the right data drives the right action ...

In MEAN TIME TO INSIGHT Episode 26, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses network compliance ... 

Most production autonomous agents do not run in a vacuum. They run inside cloud infrastructure: virtual machines, containers, pods, managed clusters or private servers. That is where most operations teams start monitoring. Is the VM alive? Is the container running? Did the pod restart? Is memory stable? Is CPU too high? Did the health check pass? Those signals are useful. They tell you whether the shell around the agent is alive. They do not tell you whether the agent inside is actually operational ...