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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

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 ...

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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.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...

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

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.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...