Skip to main content

Observability 2.0: The Convergence of AI, OpenTelemetry, and Unified Data

Neel Shah
Middleware

Traditional observability requires users to leap across different platforms or tools for metrics, logs, or traces and related issues manually, which is very time-consuming, so as to reasonably ascertain the root cause. Observability 2.0 fixes this by unifying all telemetry data, logs, metrics, and traces into a single, context-rich pipeline that flows into one smart platform.

But this is far from just having a bunch of additional data; this data is actionable, predictive, and tied to revenue realization.

Pillars of Observability 2.0

1. OpenTelemetry

OpenTelemetry (OTel) is a powerful open-source project that standardizes how telemetry data such as logs, metrics, and traces, is collected and exported. It combines the efforts of OpenTracing and OpenCensus into one unified framework. With OTel's APIs, SDKs, and tools, developers can instrument their applications in a consistent and efficient way.

Importance of Observability 2.0

  • Standardization: OTel provides a unified language for the users of metrics, logs, and traces, regardless of programming language or cloud provider. This prevents vendor lock-in and makes data ingestion really simple.
  • Context Propagation: OTel makes sure that context (like trace IDs) is propagated properly across the service boundary, which means that you can achieve real-time end-to-end microservices tracing.
  • Less Instrumentation Effort: Automatic instrumentation capabilities is helping developers to make their applications observable with very less effort.

2. Unified Data Platform

The next important thing with OpenTelemetry standardizing data collection is a unified data platform. This is where all metrics, logs, and traces are brought in and saved, and can then be correlated and made available for analysis, all from one point of access.

Advantages of Unified Platforms:

  • Contextualization: Correlating data from different sources automatically links (for example, a log message to the trace it belongs to, or a metric spike to the underlying service experiencing an issue).
  • Reduced Context Switching: So engineers no longer have to juggle several dashboards and tools, and troubleshooting has been streamlined.
  • Holistic View: It helps enable looking at systems' health, customer experience, and business impact altogether.
  • Foundation for AI: Thus, a consolidated, correlated dataset becomes imperative for training and deploying effective AI/ML models.

This platform often uses technologies like data lakehouses or purpose-built observability databases that can handle high-cardinality, high-volume telemetry data efficiently.

3. AI/ML The Brain of Proactive Observability

Using the latest tech of AI and ML, we are changing the shape of observability and getting more insights.

  • Anomaly Detection: Rather than relying on fixed thresholds, AI can learn the normal behavior of the system over time to detect subtle anomalies beforehand that humans might miss and prevent potential issues before they affect users.
  • Automating Root Cause Analysis (RCA): AI algorithms may analyze telemetry data in correlation and, automatically, suggest the probable root cause for an incident, along with drastically reducing the mean time to resolution (MTTR).
  • Predictive Insight: Based on analysis of the preceding trends, predicted future performance degradation or capacity bottlenecks can be planned against in advance using proactive mitigation by the use of AI.
  • Noise Reduction: Intelligent alerting and grouping of certain related events minimize alert fatigue, allowing engineers to focus on critical issues.
  • Recognizes Log Patterns: Through AI detection patterns in unstructured log data, it brings meaningful identification and recurring issues.

Use Cases and Scenarios Taught

1. Consider an e-Commerce platform utilizing Observability 2.0

Proactive Issue Detection in a Microservices Mesh:

Scenario: A new product is launched, garnering loads of traffic and causing some performance degradation on the payment-gateway service that really isn't visible through simple metrics.

Observability 2.0 in Action:

  • OpenTelemetry: All microservices (frontend, product catalog, cart, payment, order fulfillment) were instrumented with OpenTelemetry, gathering deep traces and measuring every user request.
  • Unified Data: All these telemetry streams into a central platform where it automatically correlates metrics, traces, and logs for each and every transaction.
  • AI/ML: The AI engine continuously learns the normal behavior of the payment-gateway while spotting an imperceptible sustained increase in latency (e.g., 5-10% above the dynamic baseline) and a moderate increase in 5xx errors-rather than one static threshold being breached. This situation is classified as an anomaly.

Outcome: An alert is generated from the AI with a high confidence score pointing to the payment-gateway service. Links to relevant traces are dumped with the alert payload, showing increased latency, and to the payment service logs, indicating database connection pool exhaustion. The team could identify the bottleneck (e.g., scaling the database or query optimizations) and resolve it before it escalated to a widespread outage impacting customers.

2. Faster Root Cause Analysis Related to Failed Order

Scenario: A customer calls in reporting their recent order failed at checkout for some unknown reason, and the support team only sees a generic error.

Observability 2.0 in Action:

  • OpenTelemetry: The unique trace ID for the customer's order gets carried across all six microservices involved (cart, checkout, inventory, payment, and shipping).
  • Unified Data: The support engineer or a Level 1 SRE can search for the customer's order_id or trace_id in the unified observability platform. This platform automatically presents a full trace of the failed transaction, indicating the name of the service that failed and even the specific line of code or database query that failed, along with the relevant logs and metrics from that particular span.
  • AI/ML: The ML Models could then analyze the pattern of similar failures and then recommend likely solutions or identify a recently-deployed code version that introduced the bug.

Outcome: Instead of spending hours digging through logs manually across various systems, the team identifies the failure point within minutes (such as inventory service returning an "out of stock" error due to a data synchronization issue), greatly speeding resolution for the customer. It can easily help to reduce a lot of time and focus on the major things.

The Road Ahead

Observability 2.0 is not just a jargon, it is systematically empowering engineering teams to build, deploy, and operate complex systems with unmatched confidence and efficiency. Organizations that implement OpenTelemetry for standardized data collection, leverage uniform data platforms for insights across the whole data spectrum, and apply AI or ML for intelligent automation are capable of changing their reactive troubleshooting to proactive prediction. This shall translate into improved digital experience and greater business success.

Are you prepared to propel your observability strategy to 2.0?

Neel Shah is a Developer Advocate at Middleware

The Latest

Artificial intelligence (AI) is core to observability practices, with some 41% of respondents reporting AI adoption as a core driver of observability, according to the State of Observability for Financial Services and Insurance report from New Relic ...

Application performance monitoring (APM) is a game of catching up — building dashboards, setting thresholds, tuning alerts, and manually correlating metrics to root causes. In the early days, this straightforward model worked as applications were simpler, stacks more predictable, and telemetry was manageable. Today, the landscape has shifted, and more assertive tools are needed ...

Cloud adoption has accelerated, but backup strategies haven't always kept pace. Many organizations continue to rely on backup strategies that were either lifted directly from on-prem environments or use cloud-native tools in limited, DR-focused ways ... Eon uncovered a handful of critical gaps regarding how organizations approach cloud backup. To capture these prevailing winds, we gathered insights from 150+ IT and cloud leaders at the recent Google Cloud Next conference, which we've compiled into the 2025 State of Cloud Data Backup ...

Private clouds are no longer playing catch-up, and public clouds are no longer the default as organizations recalibrate their cloud strategies, according to the Private Cloud Outlook 2025 report from Broadcom. More than half (53%) of survey respondents say private cloud is their top priority for deploying new workloads over the next three years, while 69% are considering workload repatriation from public to private cloud, with one-third having already done so ...

As organizations chase productivity gains from generative AI, teams are overwhelmingly focused on improving delivery speed (45%) over enhancing software quality (13%), according to the Quality Transformation Report from Tricentis ...

Back in March of this year ... MongoDB's stock price took a serious tumble ... In my opinion, it reflects a deeper structural issue in enterprise software economics altogether — vendor lock-in ...

In MEAN TIME TO INSIGHT Episode 15, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses Do-It-Yourself Network Automation ... 

Zero-day vulnerabilities — security flaws that are exploited before developers even know they exist — pose one of the greatest risks to modern organizations. Recently, such vulnerabilities have been discovered in well-known VPN systems like Ivanti and Fortinet, highlighting just how outdated these legacy technologies have become in defending against fast-evolving cyber threats ... To protect digital assets and remote workers in today's environment, companies need more than patchwork solutions. They need architecture that is secure by design ...

Traditional observability requires users to leap across different platforms or tools for metrics, logs, or traces and related issues manually, which is very time-consuming, so as to reasonably ascertain the root cause. Observability 2.0 fixes this by unifying all telemetry data, logs, metrics, and traces into a single, context-rich pipeline that flows into one smart platform. But this is far from just having a bunch of additional data; this data is actionable, predictive, and tied to revenue realization ...

64% of enterprise networking teams use internally developed software or scripts for network automation, but 61% of those teams spend six or more hours per week debugging and maintaining them, according to From Scripts to Platforms: Why Homegrown Tools Dominate Network Automation and How Vendors Can Help, my latest EMA report ...

Observability 2.0: The Convergence of AI, OpenTelemetry, and Unified Data

Neel Shah
Middleware

Traditional observability requires users to leap across different platforms or tools for metrics, logs, or traces and related issues manually, which is very time-consuming, so as to reasonably ascertain the root cause. Observability 2.0 fixes this by unifying all telemetry data, logs, metrics, and traces into a single, context-rich pipeline that flows into one smart platform.

But this is far from just having a bunch of additional data; this data is actionable, predictive, and tied to revenue realization.

Pillars of Observability 2.0

1. OpenTelemetry

OpenTelemetry (OTel) is a powerful open-source project that standardizes how telemetry data such as logs, metrics, and traces, is collected and exported. It combines the efforts of OpenTracing and OpenCensus into one unified framework. With OTel's APIs, SDKs, and tools, developers can instrument their applications in a consistent and efficient way.

Importance of Observability 2.0

  • Standardization: OTel provides a unified language for the users of metrics, logs, and traces, regardless of programming language or cloud provider. This prevents vendor lock-in and makes data ingestion really simple.
  • Context Propagation: OTel makes sure that context (like trace IDs) is propagated properly across the service boundary, which means that you can achieve real-time end-to-end microservices tracing.
  • Less Instrumentation Effort: Automatic instrumentation capabilities is helping developers to make their applications observable with very less effort.

2. Unified Data Platform

The next important thing with OpenTelemetry standardizing data collection is a unified data platform. This is where all metrics, logs, and traces are brought in and saved, and can then be correlated and made available for analysis, all from one point of access.

Advantages of Unified Platforms:

  • Contextualization: Correlating data from different sources automatically links (for example, a log message to the trace it belongs to, or a metric spike to the underlying service experiencing an issue).
  • Reduced Context Switching: So engineers no longer have to juggle several dashboards and tools, and troubleshooting has been streamlined.
  • Holistic View: It helps enable looking at systems' health, customer experience, and business impact altogether.
  • Foundation for AI: Thus, a consolidated, correlated dataset becomes imperative for training and deploying effective AI/ML models.

This platform often uses technologies like data lakehouses or purpose-built observability databases that can handle high-cardinality, high-volume telemetry data efficiently.

3. AI/ML The Brain of Proactive Observability

Using the latest tech of AI and ML, we are changing the shape of observability and getting more insights.

  • Anomaly Detection: Rather than relying on fixed thresholds, AI can learn the normal behavior of the system over time to detect subtle anomalies beforehand that humans might miss and prevent potential issues before they affect users.
  • Automating Root Cause Analysis (RCA): AI algorithms may analyze telemetry data in correlation and, automatically, suggest the probable root cause for an incident, along with drastically reducing the mean time to resolution (MTTR).
  • Predictive Insight: Based on analysis of the preceding trends, predicted future performance degradation or capacity bottlenecks can be planned against in advance using proactive mitigation by the use of AI.
  • Noise Reduction: Intelligent alerting and grouping of certain related events minimize alert fatigue, allowing engineers to focus on critical issues.
  • Recognizes Log Patterns: Through AI detection patterns in unstructured log data, it brings meaningful identification and recurring issues.

Use Cases and Scenarios Taught

1. Consider an e-Commerce platform utilizing Observability 2.0

Proactive Issue Detection in a Microservices Mesh:

Scenario: A new product is launched, garnering loads of traffic and causing some performance degradation on the payment-gateway service that really isn't visible through simple metrics.

Observability 2.0 in Action:

  • OpenTelemetry: All microservices (frontend, product catalog, cart, payment, order fulfillment) were instrumented with OpenTelemetry, gathering deep traces and measuring every user request.
  • Unified Data: All these telemetry streams into a central platform where it automatically correlates metrics, traces, and logs for each and every transaction.
  • AI/ML: The AI engine continuously learns the normal behavior of the payment-gateway while spotting an imperceptible sustained increase in latency (e.g., 5-10% above the dynamic baseline) and a moderate increase in 5xx errors-rather than one static threshold being breached. This situation is classified as an anomaly.

Outcome: An alert is generated from the AI with a high confidence score pointing to the payment-gateway service. Links to relevant traces are dumped with the alert payload, showing increased latency, and to the payment service logs, indicating database connection pool exhaustion. The team could identify the bottleneck (e.g., scaling the database or query optimizations) and resolve it before it escalated to a widespread outage impacting customers.

2. Faster Root Cause Analysis Related to Failed Order

Scenario: A customer calls in reporting their recent order failed at checkout for some unknown reason, and the support team only sees a generic error.

Observability 2.0 in Action:

  • OpenTelemetry: The unique trace ID for the customer's order gets carried across all six microservices involved (cart, checkout, inventory, payment, and shipping).
  • Unified Data: The support engineer or a Level 1 SRE can search for the customer's order_id or trace_id in the unified observability platform. This platform automatically presents a full trace of the failed transaction, indicating the name of the service that failed and even the specific line of code or database query that failed, along with the relevant logs and metrics from that particular span.
  • AI/ML: The ML Models could then analyze the pattern of similar failures and then recommend likely solutions or identify a recently-deployed code version that introduced the bug.

Outcome: Instead of spending hours digging through logs manually across various systems, the team identifies the failure point within minutes (such as inventory service returning an "out of stock" error due to a data synchronization issue), greatly speeding resolution for the customer. It can easily help to reduce a lot of time and focus on the major things.

The Road Ahead

Observability 2.0 is not just a jargon, it is systematically empowering engineering teams to build, deploy, and operate complex systems with unmatched confidence and efficiency. Organizations that implement OpenTelemetry for standardized data collection, leverage uniform data platforms for insights across the whole data spectrum, and apply AI or ML for intelligent automation are capable of changing their reactive troubleshooting to proactive prediction. This shall translate into improved digital experience and greater business success.

Are you prepared to propel your observability strategy to 2.0?

Neel Shah is a Developer Advocate at Middleware

The Latest

Artificial intelligence (AI) is core to observability practices, with some 41% of respondents reporting AI adoption as a core driver of observability, according to the State of Observability for Financial Services and Insurance report from New Relic ...

Application performance monitoring (APM) is a game of catching up — building dashboards, setting thresholds, tuning alerts, and manually correlating metrics to root causes. In the early days, this straightforward model worked as applications were simpler, stacks more predictable, and telemetry was manageable. Today, the landscape has shifted, and more assertive tools are needed ...

Cloud adoption has accelerated, but backup strategies haven't always kept pace. Many organizations continue to rely on backup strategies that were either lifted directly from on-prem environments or use cloud-native tools in limited, DR-focused ways ... Eon uncovered a handful of critical gaps regarding how organizations approach cloud backup. To capture these prevailing winds, we gathered insights from 150+ IT and cloud leaders at the recent Google Cloud Next conference, which we've compiled into the 2025 State of Cloud Data Backup ...

Private clouds are no longer playing catch-up, and public clouds are no longer the default as organizations recalibrate their cloud strategies, according to the Private Cloud Outlook 2025 report from Broadcom. More than half (53%) of survey respondents say private cloud is their top priority for deploying new workloads over the next three years, while 69% are considering workload repatriation from public to private cloud, with one-third having already done so ...

As organizations chase productivity gains from generative AI, teams are overwhelmingly focused on improving delivery speed (45%) over enhancing software quality (13%), according to the Quality Transformation Report from Tricentis ...

Back in March of this year ... MongoDB's stock price took a serious tumble ... In my opinion, it reflects a deeper structural issue in enterprise software economics altogether — vendor lock-in ...

In MEAN TIME TO INSIGHT Episode 15, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses Do-It-Yourself Network Automation ... 

Zero-day vulnerabilities — security flaws that are exploited before developers even know they exist — pose one of the greatest risks to modern organizations. Recently, such vulnerabilities have been discovered in well-known VPN systems like Ivanti and Fortinet, highlighting just how outdated these legacy technologies have become in defending against fast-evolving cyber threats ... To protect digital assets and remote workers in today's environment, companies need more than patchwork solutions. They need architecture that is secure by design ...

Traditional observability requires users to leap across different platforms or tools for metrics, logs, or traces and related issues manually, which is very time-consuming, so as to reasonably ascertain the root cause. Observability 2.0 fixes this by unifying all telemetry data, logs, metrics, and traces into a single, context-rich pipeline that flows into one smart platform. But this is far from just having a bunch of additional data; this data is actionable, predictive, and tied to revenue realization ...

64% of enterprise networking teams use internally developed software or scripts for network automation, but 61% of those teams spend six or more hours per week debugging and maintaining them, according to From Scripts to Platforms: Why Homegrown Tools Dominate Network Automation and How Vendors Can Help, my latest EMA report ...