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The Hidden Value of Observability Data

When observability data is stored and analyzed over time, it stops being a cost center and starts becoming a competitive advantage
Todd Persen
Hydrolix

Most teams collect observability data for the obvious reasons: uptime, latency, troubleshooting. It's the stuff we have to do to keep the lights on. But that mindset limits what this data is really capable of. When we treat logs like a transient utility instead of a long-term resource, we end up throwing away insight we can't get back.

Losing that data isn't just a technical issue; it limits your ability to make smarter business decisions.

I've been working on distributed systems and observability platforms for more than a decade. And one of the patterns I keep seeing — across sectors, across architectures, across team sizes — is that the teams who get the most out of their observability investments are the ones who stop thinking of it as a cost center. They start treating it like a data product.

Logs Aren't Just for SREs

The typical lifecycle of a log is: write it, ingest it, alert on it, and then (quickly) age it out. Teams dump old logs to cold storage or drop them altogether. But buried in that telemetry are clues about product usage, customer experience, threat activity, and resource consumption. This is the kind of stuff businesses pay good money for in other contexts.

Let's say you run a streaming platform. You're probably monitoring service uptime, query latency, maybe some performance metrics tied to your origin or edge infrastructure. That's great for firefighting. But what happens if a high-profile ad campaign underperforms?

Or if viewers churn during certain content types?

Or if fraudsters start abusing a new endpoint that didn't exist last quarter?

None of those questions are easy to answer if you've only retained a week's worth of logs.

Structured log data has a half-life that's often much longer than we give it credit for. The trick is making it accessible without going broke in the process.

Cold Storage Doesn't Mean Cold Insights

The dominant pattern in security right now is to route only the most critical data into a SIEM, while everything else — CDN logs, application payloads, edge traffic — gets dumped into object storage. It's a compromise born of cost constraints. And when something goes wrong, teams scramble to rehydrate logs that were never indexed, never normalized, and often never documented.

Some tools like offer features like searchable snapshots, but that approach still requires significant preprocessing during ingest. That means higher upfront costs and a rigid indexing strategy, just to preserve the ability to search later. And if you skipped that step to save money? Rehydrating cold data becomes a slow, resource-intensive task that delays incident response and limits investigation.

There's a better way. By storing structured, queryable data at rest without forcing heavy preprocessing up front, you avoid that painful tradeoff between cost and access. You can analyze what you need, when you need it, without rehydrating half your archive or scaling out a whole new cluster just to answer a question.

Cold doesn't have to mean inaccessible. But it does require thinking differently about how you write, store, and query your logs.

Retention Enables Perspective

The moment you start retaining observability data for months or years instead of days, you stop asking questions like "what broke?" and start asking "what's changing?"

Most systems evolve slowly. But if you can compare metrics year-over-year — especially around major events like Black Friday, a product launch, or a new infrastructure rollout — you can start to forecast instead of just react. A media company saw this firsthand during the Super Bowl. Being able to confirm, post-game, that they met ad delivery guarantees wasn't just about performance bragging rights. It was a revenue story.

Security teams can benefit too. Looking back across six months of access logs might reveal a dormant pattern you missed the first time around. It might even help you correlate behaviors with known CVEs that were published later.

And there's a FinOps story here, too. When you have the full log history of your compute, storage, and network resources, you can start identifying patterns in resource utilization that no dashboard ever captured, giving you a deeper understanding.

Federation Brings Insight

Most enterprises I talk to have observability data scattered across tools: Some even purposely use the multi-tool approach to cut costs, because the old approaches to unifying data sources have been expensive, not to mention lacking in efficacy. But we have better options today.

Federating log data — not just collecting it, but making it available across systems — is now possible and economical and is one of the fastest ways to turn observability from a tech tax into a business enabler. You don't have to rebuild your data warehouse overnight. But having a centralized source of logs, accessible via tools your data teams already know, opens the door to whole new types of analysis. Marketing teams start asking questions about funnel behavior. Product teams look for patterns in usage spikes. Executives ask what changed after a major incident, and now you actually have an answer.

Long-Term Value Takes Long-Term Thinking

We've all gotten used to the idea that observability is real-time. It helps you fix problems fast. But what if it could also help you make decisions that involve long-range planning and year-to-year insights? That shift requires more than just a different storage strategy. It requires a mindset change: from operational telemetry to business intelligence. The bottom line is this: when you stop throwing your logs away, you stop throwing away the answers that matter.

Todd Persen is CTO at Hydrolix

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The Hidden Value of Observability Data

When observability data is stored and analyzed over time, it stops being a cost center and starts becoming a competitive advantage
Todd Persen
Hydrolix

Most teams collect observability data for the obvious reasons: uptime, latency, troubleshooting. It's the stuff we have to do to keep the lights on. But that mindset limits what this data is really capable of. When we treat logs like a transient utility instead of a long-term resource, we end up throwing away insight we can't get back.

Losing that data isn't just a technical issue; it limits your ability to make smarter business decisions.

I've been working on distributed systems and observability platforms for more than a decade. And one of the patterns I keep seeing — across sectors, across architectures, across team sizes — is that the teams who get the most out of their observability investments are the ones who stop thinking of it as a cost center. They start treating it like a data product.

Logs Aren't Just for SREs

The typical lifecycle of a log is: write it, ingest it, alert on it, and then (quickly) age it out. Teams dump old logs to cold storage or drop them altogether. But buried in that telemetry are clues about product usage, customer experience, threat activity, and resource consumption. This is the kind of stuff businesses pay good money for in other contexts.

Let's say you run a streaming platform. You're probably monitoring service uptime, query latency, maybe some performance metrics tied to your origin or edge infrastructure. That's great for firefighting. But what happens if a high-profile ad campaign underperforms?

Or if viewers churn during certain content types?

Or if fraudsters start abusing a new endpoint that didn't exist last quarter?

None of those questions are easy to answer if you've only retained a week's worth of logs.

Structured log data has a half-life that's often much longer than we give it credit for. The trick is making it accessible without going broke in the process.

Cold Storage Doesn't Mean Cold Insights

The dominant pattern in security right now is to route only the most critical data into a SIEM, while everything else — CDN logs, application payloads, edge traffic — gets dumped into object storage. It's a compromise born of cost constraints. And when something goes wrong, teams scramble to rehydrate logs that were never indexed, never normalized, and often never documented.

Some tools like offer features like searchable snapshots, but that approach still requires significant preprocessing during ingest. That means higher upfront costs and a rigid indexing strategy, just to preserve the ability to search later. And if you skipped that step to save money? Rehydrating cold data becomes a slow, resource-intensive task that delays incident response and limits investigation.

There's a better way. By storing structured, queryable data at rest without forcing heavy preprocessing up front, you avoid that painful tradeoff between cost and access. You can analyze what you need, when you need it, without rehydrating half your archive or scaling out a whole new cluster just to answer a question.

Cold doesn't have to mean inaccessible. But it does require thinking differently about how you write, store, and query your logs.

Retention Enables Perspective

The moment you start retaining observability data for months or years instead of days, you stop asking questions like "what broke?" and start asking "what's changing?"

Most systems evolve slowly. But if you can compare metrics year-over-year — especially around major events like Black Friday, a product launch, or a new infrastructure rollout — you can start to forecast instead of just react. A media company saw this firsthand during the Super Bowl. Being able to confirm, post-game, that they met ad delivery guarantees wasn't just about performance bragging rights. It was a revenue story.

Security teams can benefit too. Looking back across six months of access logs might reveal a dormant pattern you missed the first time around. It might even help you correlate behaviors with known CVEs that were published later.

And there's a FinOps story here, too. When you have the full log history of your compute, storage, and network resources, you can start identifying patterns in resource utilization that no dashboard ever captured, giving you a deeper understanding.

Federation Brings Insight

Most enterprises I talk to have observability data scattered across tools: Some even purposely use the multi-tool approach to cut costs, because the old approaches to unifying data sources have been expensive, not to mention lacking in efficacy. But we have better options today.

Federating log data — not just collecting it, but making it available across systems — is now possible and economical and is one of the fastest ways to turn observability from a tech tax into a business enabler. You don't have to rebuild your data warehouse overnight. But having a centralized source of logs, accessible via tools your data teams already know, opens the door to whole new types of analysis. Marketing teams start asking questions about funnel behavior. Product teams look for patterns in usage spikes. Executives ask what changed after a major incident, and now you actually have an answer.

Long-Term Value Takes Long-Term Thinking

We've all gotten used to the idea that observability is real-time. It helps you fix problems fast. But what if it could also help you make decisions that involve long-range planning and year-to-year insights? That shift requires more than just a different storage strategy. It requires a mindset change: from operational telemetry to business intelligence. The bottom line is this: when you stop throwing your logs away, you stop throwing away the answers that matter.

Todd Persen is CTO at Hydrolix

The Latest

For years, production operations teams have treated alert fatigue as a quality-of-life problem: something that makes on-call rotations miserable but isn't considered a direct contributor to outages. That framing doesn't capture how these systems fail, and we now have data to show why. More importantly, it's now clear alert fatigue is a symptom of a deeper issue: production systems have outgrown the current operational approaches ...

I was on a customer call last fall when an enterprise architect said something I haven't been able to shake. Her team had just spent four months trying to swap one AI vendor for another. The original plan said three weeks. "We didn't switch vendors," she told me. "We rebuilt half our integrations and discovered what we'd actually been depending on." Most enterprise leaders don't expect that to be the experience ...

Ask any senior SRE or platform engineer what keeps them up at night, and the answer probably isn't the monitoring tool — it's the data feeding it. The proliferation of APM, observability, and AIOps platforms has created a telemetry sprawl problem that most teams manage reactively rather than architect proactively. Metrics are going to one platform. Traces routed somewhere else. Logs duplicated across multiple backends because nobody wants to be caught without them when something breaks. Every redundant stream costs money ...

80% of respondents agree that the IT role is shifting from operators to orchestrators, according to the 2026 IT Trends Report: The Human Side of Autonomous IT from SolarWinds ...

40% of organizations deploying AI will implement dedicated AI observability tools by 2028 to monitor model performance, bias and outputs, according to Gartner ...

Until AI-powered engineering tools have live visibility of how code behaves at runtime, they cannot be trusted to autonomously ensure reliable systems, according to the State of AI-Powered Engineering Report 2026 report from Lightrun. The report reveals that a major volume of manual work is required when AI-generated code is deployed: 43% of AI-generated code requires manual debugging in production, even after passing QA or staging tests. Furthermore, an average of three manual redeploy cycles are required to verify a single AI-suggested code fix in production ...

Many organizations describe AI as strategic, but they do not manage it strategically. When AI plans are disconnected from strategy, detached from organizational learning, and protected from serious assumptions testing, the problem is no longer technical immaturity; it is a failure of management discipline ... Executives too often tell organizations to "use AI" before they define what AI is supposed to change. The problem deepens in organizations where strategy isn't well articulated in the first place ...

Across the enterprise technology landscape, a quiet crisis is playing out. Organizations have run hundreds, sometimes thousands, of generative AI pilots. Leadership has celebrated the proof of concept (POCs) ... Industry experience points to a sobering reality: only 5-10% of AI POCs that progress to the pilot stage successfully reach scaled production. The remaining 90% fail because the enterprise environment around them was never ready to absorb them, not the AI models ...

Today's modern systems are not what they once were. Organizations now rely on distributed systems, event-driven workflows, hybrid and multi-cloud environments and continuous delivery pipelines. While each adds flexibility, it also introduces new, often invisible failures. Development speed is no longer the primary bottleneck of innovation. Reliability is ...

Seeing is believing, or in this case, seeing is understanding, according to New Relic's 2025 Observability Forecast for Retail and eCommerce report. Retailers who want to provide exceptional customer experiences while improving IT operations efficiency are leaning on observability ... Here are five key takeaways from the report ...