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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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Over the past few years, large language models (LLMs) have revolutionized the software industry. Given their ability to excel at multi-step reasoning, LLMs have helped enterprises streamline workflows and adapt to the unknown. However, employing such models comes with sky-high costs, latency issues, and limited flexibility. In the realm of IT operations, it is generally wiser to employ smaller, domain-specific models instead ...

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New Relic surveyed IT and engineering leaders from the media and entertainment (M&E) sector to understand what's working — and where challenges persist with their observability practices. The findings reveal how M&E organizations are navigating rising platform complexity, audience expectations, and AI-driven change. Below are five takeaways that stand out ...

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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

I've spent a lot of time in the channel, and one thing I keep coming back to is this: a partner program is only as good as what it looks like in the field. Many programs look great on paper, but when a partner is in front of a customer navigating a complex hybrid environment or trying to make the case for AI-powered observability, the gap between what a vendor promises and what it actually delivers becomes very clear, very fast ...

Enterprises today operate in a real-time environment where uninterrupted access to trusted data has become a baseline expectation for users, applications and automated systems. Traditional DataOps models, built on manual effort and human triage, cannot keep pace with this always active demand. AI agents are emerging as the operational backbone, ensuring consistent data availability, reinforcing trustworthiness and enabling a level of scale that manual processes cannot achieve ...

For decades, trust in the digital workplace rested on familiar signals. We trusted faces on video calls, voices on the phone, and emails that appeared to come from people we knew. These cues felt human and intuitive. They anchored how decisions were made, approvals were granted, and access was authorized. AI-powered deepfakes have quietly broken that model ...

Cloud migration was supposed to be a one-way door. For most enterprises, it turns out it isn't. Cloud data repatriation is a real and growing trend. A new survey ... finds that 89% of organizations plan to expand their on-premises infrastructure footprint over the next two years — and 75% have already moved at least some workloads back from public cloud in the past 24 months. The findings point to a broad rethinking of where data belongs ...

Over the past few years, large language models (LLMs) have revolutionized the software industry. Given their ability to excel at multi-step reasoning, LLMs have helped enterprises streamline workflows and adapt to the unknown. However, employing such models comes with sky-high costs, latency issues, and limited flexibility. In the realm of IT operations, it is generally wiser to employ smaller, domain-specific models instead ...

For years, DevOps teams operated under a simple assumption: collect enough telemetry, and you can find and fix any problem. That assumption is breaking down. Modern enterprises now operate across microservices, hybrid cloud environments, APIs, Kubernetes, and highly automated delivery pipelines. Releases happen continuously, dependencies shift constantly, and failures spread faster than teams can diagnose them ...

New Relic surveyed IT and engineering leaders from the media and entertainment (M&E) sector to understand what's working — and where challenges persist with their observability practices. The findings reveal how M&E organizations are navigating rising platform complexity, audience expectations, and AI-driven change. Below are five takeaways that stand out ...

Let me start with something I've seen play out more times than I can count. A team hits a wall with the cloud. Costs creep up, then spike. Performance starts to feel inconsistent. Someone in finance asks a simple question like "why did this double?" and nobody has a clean answer ... Maybe this isn't the right place for everything. That realization feels like a breakthrough, like you've identified the problem. In reality, you've just identified the starting line ...

In MEAN TIME TO INSIGHT Episode 24, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses network observability tool sprawl ... 

In cloud-native systems, scaling is often as simple as moving a slider. For on-premise databases, the stakes are different. Over-provisioning hardware is expensive. Under-provisioning leads to performance bottlenecks that are difficult to fix once the equipment is in the rack ...