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The State of Observability 2022

The most sophisticated observability practitioners (leaders) are able to cut downtime costs by 90%, from an estimated $23.8 million annually to just $2.5 million, compared to observability beginners, according to the State of Observability 2022 from Splunk in collaboration with the Enterprise Strategy Group.


What's more, leaders in observability are more innovative and more successful at achieving digital transformation outcomes and other initiatives:

■ Observability leaders have launched 60% more products or revenue streams from AppDev teams in the last year compared to beginners.

■ Observability leaders report a 69% better mean time to resolution for unplanned downtime or performance degradation thanks to investment in observability.

■ 66% of leaders report that their visibility into application performance is excellent (compared to just 44% of beginners). Similarly, 64% of leaders report that visibility into their security posture is excellent (versus 42% of beginners).

■ Twice as many leaders can detect problems associated with internally developed applications within minutes, resulting in an estimated 37% better MTTD.

"Our research confirms just how vital observability is for every business," said Spiros Xanthos, SVP and General Manager, Observability, Splunk. "The most sophisticated observability practitioners have given themselves an edge in digital transformation while massively cutting costs associated with downtime and boosting their ability to out-innovate the competition. These observability leaders are more competitive, more resilient and more efficient as a result."

Increased cloud complexity also highlights how imperative becoming an observability leader is for all enterprises. Organizations have been moving to the cloud for more than a decade and in more recent years, hybrid architectures and multicloud operations have complicated many organizations' cloud ecosystems.

70% of respondents are using multiple cloud services, and the shift to multicloud has increased complexity:

■ 75% of respondents have many cloud-native applications that run in multiple environments, either multiple public clouds or a combination of on-premises and public clouds.

■ Leaders are even more likely to report commonly running cloud-native applications (92% versus 68% of beginners),

■ 36% of organizations (and 47% of leaders) that use the public cloud to run internally developed applications use three or more different public clouds today, and 67% expect to do so within 24 months.

While the challenges of observability are global, the report reveals that there are significant variations across countries:

■ Canadian organizations trail in their observability journey: 79% are beginners (versus 58% averaged across other countries) and just 2% are leaders (versus 10% in the rest of the world).

■ French organizations more often report that their investments in AIOps technologies have helped them achieve lower mean time to resolution (MTTR) (58% versus 43% averaged across other countries).

■ Japanese organizations have had noteworthy success using AIOps technologies to help solve recurring issues in their environment: 74% report that this has been a benefit of AIOps, versus a 55% average across other countries.

■ Indian organizations are further along in the observability journey: Only 29% are rated as beginners, versus 62% on average across other countries.

For organizations across the globe looking to invest in observability, a lack of staff is one of the biggest hindrances in improving observability. Among respondents, 95% reported challenges in finding staff to monitor and manage infrastructure and application availability, while 81% of enterprises said a lack of staff had led to projects and initiatives failing.

"Organizations that use the right observability tools and practices and build to attract talent stand the best chance of becoming leaders in observability," said Xanthos. "By tackling data volume and variety with AI, organizations can alleviate staffing concerns, while at the same time investing in skills training to draw in the very best talent available. Consolidating vendors and rationalizing tools will also allow companies to curate the vendor and tool set that gives them the most visibility with the least drag, lessening the potential for staff burnout in the process."

Methodology: The global survey was conducted from early-February through mid-February 2022 in partnership with the Enterprise Strategy Group. The 1,250 application development and IT operations leaders who spend more than half of their time on observability issues were drawn from 11 regions: Australia, Canada, France, Germany, India, Japan, The Netherlands, New Zealand, Singapore, The United Kingdom and the United States.

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The State of Observability 2022

The most sophisticated observability practitioners (leaders) are able to cut downtime costs by 90%, from an estimated $23.8 million annually to just $2.5 million, compared to observability beginners, according to the State of Observability 2022 from Splunk in collaboration with the Enterprise Strategy Group.


What's more, leaders in observability are more innovative and more successful at achieving digital transformation outcomes and other initiatives:

■ Observability leaders have launched 60% more products or revenue streams from AppDev teams in the last year compared to beginners.

■ Observability leaders report a 69% better mean time to resolution for unplanned downtime or performance degradation thanks to investment in observability.

■ 66% of leaders report that their visibility into application performance is excellent (compared to just 44% of beginners). Similarly, 64% of leaders report that visibility into their security posture is excellent (versus 42% of beginners).

■ Twice as many leaders can detect problems associated with internally developed applications within minutes, resulting in an estimated 37% better MTTD.

"Our research confirms just how vital observability is for every business," said Spiros Xanthos, SVP and General Manager, Observability, Splunk. "The most sophisticated observability practitioners have given themselves an edge in digital transformation while massively cutting costs associated with downtime and boosting their ability to out-innovate the competition. These observability leaders are more competitive, more resilient and more efficient as a result."

Increased cloud complexity also highlights how imperative becoming an observability leader is for all enterprises. Organizations have been moving to the cloud for more than a decade and in more recent years, hybrid architectures and multicloud operations have complicated many organizations' cloud ecosystems.

70% of respondents are using multiple cloud services, and the shift to multicloud has increased complexity:

■ 75% of respondents have many cloud-native applications that run in multiple environments, either multiple public clouds or a combination of on-premises and public clouds.

■ Leaders are even more likely to report commonly running cloud-native applications (92% versus 68% of beginners),

■ 36% of organizations (and 47% of leaders) that use the public cloud to run internally developed applications use three or more different public clouds today, and 67% expect to do so within 24 months.

While the challenges of observability are global, the report reveals that there are significant variations across countries:

■ Canadian organizations trail in their observability journey: 79% are beginners (versus 58% averaged across other countries) and just 2% are leaders (versus 10% in the rest of the world).

■ French organizations more often report that their investments in AIOps technologies have helped them achieve lower mean time to resolution (MTTR) (58% versus 43% averaged across other countries).

■ Japanese organizations have had noteworthy success using AIOps technologies to help solve recurring issues in their environment: 74% report that this has been a benefit of AIOps, versus a 55% average across other countries.

■ Indian organizations are further along in the observability journey: Only 29% are rated as beginners, versus 62% on average across other countries.

For organizations across the globe looking to invest in observability, a lack of staff is one of the biggest hindrances in improving observability. Among respondents, 95% reported challenges in finding staff to monitor and manage infrastructure and application availability, while 81% of enterprises said a lack of staff had led to projects and initiatives failing.

"Organizations that use the right observability tools and practices and build to attract talent stand the best chance of becoming leaders in observability," said Xanthos. "By tackling data volume and variety with AI, organizations can alleviate staffing concerns, while at the same time investing in skills training to draw in the very best talent available. Consolidating vendors and rationalizing tools will also allow companies to curate the vendor and tool set that gives them the most visibility with the least drag, lessening the potential for staff burnout in the process."

Methodology: The global survey was conducted from early-February through mid-February 2022 in partnership with the Enterprise Strategy Group. The 1,250 application development and IT operations leaders who spend more than half of their time on observability issues were drawn from 11 regions: Australia, Canada, France, Germany, India, Japan, The Netherlands, New Zealand, Singapore, The United Kingdom and the United States.

Hot Topics

The Latest

According to Auvik's 2025 IT Trends Report, 60% of IT professionals feel at least moderately burned out on the job, with 43% stating that their workload is contributing to work stress. At the same time, many IT professionals are naming AI and machine learning as key areas they'd most like to upskill ...

Businesses that face downtime or outages risk financial and reputational damage, as well as reducing partner, shareholder, and customer trust. One of the major challenges that enterprises face is implementing a robust business continuity plan. What's the solution? The answer may lie in disaster recovery tactics such as truly immutable storage and regular disaster recovery testing ...

IT spending is expected to jump nearly 10% in 2025, and organizations are now facing pressure to manage costs without slowing down critical functions like observability. To meet the challenge, leaders are turning to smarter, more cost effective business strategies. Enter stage right: OpenTelemetry, the missing piece of the puzzle that is no longer just an option but rather a strategic advantage ...

Amidst the threat of cyberhacks and data breaches, companies install several security measures to keep their business safely afloat. These measures aim to protect businesses, employees, and crucial data. Yet, employees perceive them as burdensome. Frustrated with complex logins, slow access, and constant security checks, workers decide to completely bypass all security set-ups ...

Image
Cloudbrink's Personal SASE services provide last-mile acceleration and reduction in latency

In MEAN TIME TO INSIGHT Episode 13, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses hybrid multi-cloud networking strategy ... 

In high-traffic environments, the sheer volume and unpredictable nature of network incidents can quickly overwhelm even the most skilled teams, hindering their ability to react swiftly and effectively, potentially impacting service availability and overall business performance. This is where closed-loop remediation comes into the picture: an IT management concept designed to address the escalating complexity of modern networks ...

In 2025, enterprise workflows are undergoing a seismic shift. Propelled by breakthroughs in generative AI (GenAI), large language models (LLMs), and natural language processing (NLP), a new paradigm is emerging — agentic AI. This technology is not just automating tasks; it's reimagining how organizations make decisions, engage customers, and operate at scale ...

In the early days of the cloud revolution, business leaders perceived cloud services as a means of sidelining IT organizations. IT was too slow, too expensive, or incapable of supporting new technologies. With a team of developers, line of business managers could deploy new applications and services in the cloud. IT has been fighting to retake control ever since. Today, IT is back in the driver's seat, according to new research by Enterprise Management Associates (EMA) ...

In today's fast-paced and increasingly complex network environments, Network Operations Centers (NOCs) are the backbone of ensuring continuous uptime, smooth service delivery, and rapid issue resolution. However, the challenges faced by NOC teams are only growing. In a recent study, 78% state network complexity has grown significantly over the last few years while 84% regularly learn about network issues from users. It is imperative we adopt a new approach to managing today's network experiences ...

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Broadcom

From growing reliance on FinOps teams to the increasing attention on artificial intelligence (AI), and software licensing, the Flexera 2025 State of the Cloud Report digs into how organizations are improving cloud spend efficiency, while tackling the complexities of emerging technologies ...