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Exploring the Current State of Observability

Trevor Jones
Grafana Labs

In today's cloud-native world, companies are dealing with a deluge of telemetry data. But despite the concept of observability being more than six decades old, companies are still struggling to mature their observability practices. In turn, they can't tap into their data and extract insights that would otherwise help them improve performance, reliability, and cost.

According to Grafana Labs' 2024 Observability Survey, it doesn't matter what industry a company is in or the number of employees they have, the truth is: the more mature their observability practices are, the more time and money they save.


From AI to OpenTelemetry — here are four key takeaways from this year's report:

Too many tools

As businesses adopt new technologies and amass more data sources, they're also adding more observability tools to their toolkit to keep track of their systems. Collectively, respondents cited using 60+ technologies, and most use at least four observability tools.

But with more tools comes more complexity, which is why it's no surprise that among teams that have centralized observability, or a "single pane of glass" view of all their systems and data, 79% say it has saved them time or money as a result of lower MTTR, vendor fees, and operational costs.


How many observability technologies are you using?

AI isn't that helpful — yet

AI is seemingly everywhere these days, but in the observability space, there's more talk about its potential than there is about actually putting it into practice. Only 7% of respondents say they're using observability on AI systems and LLMs, while 46% say it's not even on their radar.

But for those who are thinking about using AI in observability, anomaly detection is cited as the most exciting use case. Roughly half also see value in predictive insights, dashboard generation, query assistance, and automated incident summaries.


Which AI/ML-powered features would be most valuable to your observability practice?

Open source and open standards reign supreme

Open source plays an important role in the observability landscape, with 80% of the most popular technologies cited in the survey being open source. It's no surprise that OpenTelemetry and Prometheus top that list and continue to gain traction. In fact, an overwhelming majority of respondents are investing in Prometheus (89%) or OpenTelemetry (85%) — and almost 40% of respondents use both in their operations, with more than half increasing their usage of each project over the past year.

Concern over cloud costs is growing, but observability maturity can help

Respondents were asked where they land on Grafana Labs' Observability Journey Maturity Model and while a little over half say their organization has taken a proactive approach, more checked reactive than systematic. Being reactive means that more often than not, customers are raising issues before observability teams can catch them, while taking a systemic approach means developing procedures and implementing tools to find issues before users, and minimize their impact.

The different approaches can result in very different outcomes, with 65% of those with a systematic approach having saved time or money through centralized observability, compared to just 35% of those who take a reactive approach.

And since more than half of respondents say cost is their biggest concern, moving towards a systemic approach to observability has never been more important.


From centralizing systems and embracing open source standards to exploring new ways to use AI and fostering more proactive strategies — organizations can streamline that complexity and pave the way for enhanced operational efficiency and effectiveness.

Methodology: Grafana Labs surveyed over 300 people from all around the world for the report. Respondents hailed from companies of all sizes, from less than 10 employees to more than 5,000, and spanned across all industries, including technology, financial services, retail, healthcare, and more, providing a holistic view of the diverse landscape of observability practices and challenges across various sectors and organizational scales.

Trevor Jones is Senior Content Manager at Grafana Labs

The Latest

In live financial environments, capital markets software cannot pause for rebuilds. New capabilities are introduced as stacked technology layers to meet evolving demands while systems remain active, data keeps moving, and controls stay intact. AI is no exception, and its opportunities are significant: accelerated decision cycles, compressed manual workflows, and more effective operations across complex environments. The constraint isn't the models themselves, but the architectural environments they enter ...

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

In MEAN TIME TO INSIGHT Episode 23, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the NetOps labor shortage ... 

Technology management is evolving, and in turn, so is the scope of FinOps. The FinOps Foundation recently updated their mission statement from "advancing the people who manage the value of cloud" to "advancing the people who manage the value of technology." This seemingly small change solidifies a larger evolution: FinOps practitioners have organically expanded to be focused on more than just cloud cost optimization. Today, FinOps teams are largely — and quickly — expanding their job descriptions, evolving into a critical function for managing the full value of technology ...

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.

Exploring the Current State of Observability

Trevor Jones
Grafana Labs

In today's cloud-native world, companies are dealing with a deluge of telemetry data. But despite the concept of observability being more than six decades old, companies are still struggling to mature their observability practices. In turn, they can't tap into their data and extract insights that would otherwise help them improve performance, reliability, and cost.

According to Grafana Labs' 2024 Observability Survey, it doesn't matter what industry a company is in or the number of employees they have, the truth is: the more mature their observability practices are, the more time and money they save.


From AI to OpenTelemetry — here are four key takeaways from this year's report:

Too many tools

As businesses adopt new technologies and amass more data sources, they're also adding more observability tools to their toolkit to keep track of their systems. Collectively, respondents cited using 60+ technologies, and most use at least four observability tools.

But with more tools comes more complexity, which is why it's no surprise that among teams that have centralized observability, or a "single pane of glass" view of all their systems and data, 79% say it has saved them time or money as a result of lower MTTR, vendor fees, and operational costs.


How many observability technologies are you using?

AI isn't that helpful — yet

AI is seemingly everywhere these days, but in the observability space, there's more talk about its potential than there is about actually putting it into practice. Only 7% of respondents say they're using observability on AI systems and LLMs, while 46% say it's not even on their radar.

But for those who are thinking about using AI in observability, anomaly detection is cited as the most exciting use case. Roughly half also see value in predictive insights, dashboard generation, query assistance, and automated incident summaries.


Which AI/ML-powered features would be most valuable to your observability practice?

Open source and open standards reign supreme

Open source plays an important role in the observability landscape, with 80% of the most popular technologies cited in the survey being open source. It's no surprise that OpenTelemetry and Prometheus top that list and continue to gain traction. In fact, an overwhelming majority of respondents are investing in Prometheus (89%) or OpenTelemetry (85%) — and almost 40% of respondents use both in their operations, with more than half increasing their usage of each project over the past year.

Concern over cloud costs is growing, but observability maturity can help

Respondents were asked where they land on Grafana Labs' Observability Journey Maturity Model and while a little over half say their organization has taken a proactive approach, more checked reactive than systematic. Being reactive means that more often than not, customers are raising issues before observability teams can catch them, while taking a systemic approach means developing procedures and implementing tools to find issues before users, and minimize their impact.

The different approaches can result in very different outcomes, with 65% of those with a systematic approach having saved time or money through centralized observability, compared to just 35% of those who take a reactive approach.

And since more than half of respondents say cost is their biggest concern, moving towards a systemic approach to observability has never been more important.


From centralizing systems and embracing open source standards to exploring new ways to use AI and fostering more proactive strategies — organizations can streamline that complexity and pave the way for enhanced operational efficiency and effectiveness.

Methodology: Grafana Labs surveyed over 300 people from all around the world for the report. Respondents hailed from companies of all sizes, from less than 10 employees to more than 5,000, and spanned across all industries, including technology, financial services, retail, healthcare, and more, providing a holistic view of the diverse landscape of observability practices and challenges across various sectors and organizational scales.

Trevor Jones is Senior Content Manager at Grafana Labs

The Latest

In live financial environments, capital markets software cannot pause for rebuilds. New capabilities are introduced as stacked technology layers to meet evolving demands while systems remain active, data keeps moving, and controls stay intact. AI is no exception, and its opportunities are significant: accelerated decision cycles, compressed manual workflows, and more effective operations across complex environments. The constraint isn't the models themselves, but the architectural environments they enter ...

Like most digital transformation shifts, organizations often prioritize productivity and leave security and observability to keep pace. This usually translates to both the mass implementation of new technology and fragmented monitoring and observability (M&O) tooling. In the era of AI and varied cloud architecture, a disparate observability function can be dangerous. IT teams will lack a complete picture of their IT environment, making it harder to diagnose issues while slowing down mean time to resolve (MTTR). In fact, according to recent data from the SolarWinds State of Monitoring & Observability Report, 77% of IT personnel said the lack of visibility across their on-prem and cloud architecture was an issue ...

In MEAN TIME TO INSIGHT Episode 23, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the NetOps labor shortage ... 

Technology management is evolving, and in turn, so is the scope of FinOps. The FinOps Foundation recently updated their mission statement from "advancing the people who manage the value of cloud" to "advancing the people who manage the value of technology." This seemingly small change solidifies a larger evolution: FinOps practitioners have organically expanded to be focused on more than just cloud cost optimization. Today, FinOps teams are largely — and quickly — expanding their job descriptions, evolving into a critical function for managing the full value of technology ...

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.