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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

AI observability serves several roles across an organization. AI engineers use it to build, evaluate, and improve AI systems. SREs use it to operate those systems reliably and efficiently in production, including managing their cost. Leaders need it to connect AI behavior and operational performance to business outcomes. The common need is a clear understanding of whether AI systems are delivering the intended result ...

Part 4 outlines the challenges enterprise face when adopting AI observability. The main challenge is that AI complexity compounds at every stage of maturity. LLM-based applications introduce new behavior, dependencies, and quality considerations, while Agentic AI adds further failure modes as systems make decisions and take actions ...

Part 3 reports on the current state of AI observability. Most experts agree: enterprises are moving faster with AI than they are with the operational discipline needed to run it safely ...

When discussing AI Observability, one of the first questions that arises: Is this just an extension of traditional observability or is this a whole new type of tool? Part 2 compares traditional observability with AI observability ...

In this extensive 14-part series that will post over the next three weeks, experts across observability and AI will provide insight and opinions on the need for AI Observability, the challenges, the benefits, the current state, and predictions for the future ...

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AI, automation, and enterprise software give organizations an extraordinary amount of leverage. Work that once required hours can happen in minutes. Information buried across systems can be analyzed almost instantly. Complex workflows can be coordinated across teams with far less manual intervention. That leverage creates a temptation to start with the technology ...

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For more than a decade, the default infrastructure play has been simple. Move more workloads to the cloud, retire on-premises gear and treat the data center as a cost to shrink. That logic held while public cloud offered near-limitless capacity at predictable prices, and AI demand is now testing both halves of that assumption ...

Most enterprise IT leaders can tell you exactly how many applications are running across their organization. They can surface a dashboard showing telecom spend by region, pull a report on SaaS license utilization, or call up a real-time view of mobile device inventory. The data is there, and IT leaders have largely delivered on the promise of visibility. Yet, in most organizations, that visibility has not translated into business value ...

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

AI observability serves several roles across an organization. AI engineers use it to build, evaluate, and improve AI systems. SREs use it to operate those systems reliably and efficiently in production, including managing their cost. Leaders need it to connect AI behavior and operational performance to business outcomes. The common need is a clear understanding of whether AI systems are delivering the intended result ...

Part 4 outlines the challenges enterprise face when adopting AI observability. The main challenge is that AI complexity compounds at every stage of maturity. LLM-based applications introduce new behavior, dependencies, and quality considerations, while Agentic AI adds further failure modes as systems make decisions and take actions ...

Part 3 reports on the current state of AI observability. Most experts agree: enterprises are moving faster with AI than they are with the operational discipline needed to run it safely ...

When discussing AI Observability, one of the first questions that arises: Is this just an extension of traditional observability or is this a whole new type of tool? Part 2 compares traditional observability with AI observability ...

In this extensive 14-part series that will post over the next three weeks, experts across observability and AI will provide insight and opinions on the need for AI Observability, the challenges, the benefits, the current state, and predictions for the future ...

Amid rising complexity, organizations are moving quickly toward agent-driven operations: AgenticOps, according to The Impact of Agentic AI on Network Operations, a new report from Cisco ...

AI, automation, and enterprise software give organizations an extraordinary amount of leverage. Work that once required hours can happen in minutes. Information buried across systems can be analyzed almost instantly. Complex workflows can be coordinated across teams with far less manual intervention. That leverage creates a temptation to start with the technology ...

Everyone wants to talk about models. Compute clusters. Benchmark scores that climb a fraction of a point and make headlines anyway. It's an easy conversation to have because it's measurable. But it's also increasingly beside the point ...

For more than a decade, the default infrastructure play has been simple. Move more workloads to the cloud, retire on-premises gear and treat the data center as a cost to shrink. That logic held while public cloud offered near-limitless capacity at predictable prices, and AI demand is now testing both halves of that assumption ...

Most enterprise IT leaders can tell you exactly how many applications are running across their organization. They can surface a dashboard showing telecom spend by region, pull a report on SaaS license utilization, or call up a real-time view of mobile device inventory. The data is there, and IT leaders have largely delivered on the promise of visibility. Yet, in most organizations, that visibility has not translated into business value ...