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Observability: The Next Frontier for AIOps

Will Cappelli
Moogsoft

Enterprise ITOM and ITSM teams have been welcoming of AIOps, believing that it has the potential to deliver great value to them as their IT environments become more distributed, hybrid and complex. Not so with DevOps teams.

Listen to Will Cappelli discuss AIOps and Observability on the AI+ITOPS Podcast

It's safe to say they've kept AIOps at arm's length, because they don't think it's relevant nor useful for what they do. Instead, to manage the software code they develop and deploy, they've focused on observability.

In concrete terms, this means that for your typical DevOps pros, if the app delivered to their production environment is observable, that's all they need. They're skeptical of what, if anything, AIOps can contribute in this scenario.

This blog will explain why AIOps can help DevOps teams manage their environments with unprecedented accuracy and velocity, and outline the benefits of combining AIOps with observability.


AIOps: Room to Grow its Adoption and Functionality

In truth, there isn't one universally effective set of metrics that works for every team to measure the value that AIOps delivers. This is an issue not just for AIOps but for many ITOM and ITSM technologies as well. In fact, many enterprise IT teams who invested in AIOps in recent years are now carefully watching their deployments to assess their value before deciding whether or not to expand on them.

Still, there's a lot of room for AIOps adoption to grow, because there are many enterprises that haven't adopted it at all. That's why many vendors are trying to position themselves as AIOps players, to be part of a growing market. For this reason, the AIOps market has now gotten crowded.

So how can AIOps as a practice innovate and evolve at this point? What AIOps innovations can deliver unique capabilities that will set it apart from the pack of existing varieties? Clearly, the way to do this is to tailor, expand and apply AI-functionality to observability data. Such a solution would appeal strongly to the DevOps community, and dissolve its historical reluctance and skepticism towards AIOps.

But What is Observability?

However, there's an issue. When you press DevOps pros a little bit and ask them what observability is, you get three very different answers. The first is that observability is nothing more than traditional monitoring applied to a DevOps environment and toolset. This is flat out wrong.

Another meaning you'll hear given to observability is its traditional one: That it's a property of the system being monitored. In other words, observability isn't about the technology doing the monitoring or the observing, but rather it's the self-descriptive data a system generates.

According to this definition, people monitoring these systems can obtain an accurate picture of the changes occurring in them and of their causal relationships. However, it's clear that this view of observability, while related to the second one, is a dead end. It's just a stream of raw data and nothing else.

A third definition is that, compared with traditional monitoring, observability is a fundamentally different way of looking at and getting data from the environment being managed. And it needs to be, because the DevOps world is one of continuous integration, continuous delivery and continuous change — a world that's highly componentized and dynamic.

The way traditional monitoring tools take data from an environment, filter it, and generate events isn't appropriate for DevOps. You need to observe changes that happen so quickly that trying to fit the data into any kind of pre-arranged structure just falls short. You won't be able to see what's going on in the environment.

Instead, DevOps teams need to access the raw data generated by their toolset and environment, and perform analytics directly on it. That raw data is made up of metrics, traces, logs and events. So observability is indeed a revolution, a drastic shift away from all the pre-built filters and the pre-packaged models of traditional monitoring systems.

This definition is the one that serves up a potential for technological innovation and for delivering the most value through AIOps, because DevOps teams do need help to make sense of this raw data stream, and act accordingly.

AI analysis and automation applied to observability can deliver this assistance to DevOps teams. Such an approach would take the raw data from the DevOps environment and give DevOps practitioners an understanding of the systems that they're developing and delivering.

With these insights, DevOps teams can more effectively decide on actions to fix problems, or to improve performance.

So what's involved in combining AIOps and observability?

Metrics, traces, logs and events must first be collected and analyzed. Metrics captures a temporal dimension of what's happening, through its time-series data. Traces map a path through a topology, so they provide a spatial dimension -- a trace is a chain of execution across different system components, usually microservices. Logs and events provide a record of unstructured events.

With AIOps analysis, metrics reveal anomalies, traces show topology-based microservice relationships, and unstructured logs and events provide the foundation for triggering a significant alert.

Machine learning algorithms would then come into play to indicate an uncommon occurrence, pinpoint unusual metrics, traces, logs and events, and correlate them using temporal, spatial and textual criteria. The next step in the process would be the identification of a probable root cause of the problem, based on the history of previously resolved incidents. Then, ideally, automated remedial actions would be carried out.

Clearly, this combination of AIOps and observability would offer tremendous value to DevOps teams, as it would automate the detection, diagnosis and remediation of problems with the speed and accuracy required in their CI/CD environments. This would represent a breakthrough for AIOps: Earning the appreciation of reticent DevOps teams by giving them deep insights into observability data, and unparalleled visibility into their environments.

Will Cappelli is Field CTO at Moogsoft

The Latest

In live financial environments, capital markets software cannot pause for rebuilds. New capabilities are introduced as stacked technology layers to meet evolving demands while systems remain active, data keeps moving, and controls stay intact. AI is no exception, and its opportunities are significant: accelerated decision cycles, compressed manual workflows, and more effective operations across complex environments. The constraint isn't the models themselves, but the architectural environments they enter ...

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.

Observability: The Next Frontier for AIOps

Will Cappelli
Moogsoft

Enterprise ITOM and ITSM teams have been welcoming of AIOps, believing that it has the potential to deliver great value to them as their IT environments become more distributed, hybrid and complex. Not so with DevOps teams.

Listen to Will Cappelli discuss AIOps and Observability on the AI+ITOPS Podcast

It's safe to say they've kept AIOps at arm's length, because they don't think it's relevant nor useful for what they do. Instead, to manage the software code they develop and deploy, they've focused on observability.

In concrete terms, this means that for your typical DevOps pros, if the app delivered to their production environment is observable, that's all they need. They're skeptical of what, if anything, AIOps can contribute in this scenario.

This blog will explain why AIOps can help DevOps teams manage their environments with unprecedented accuracy and velocity, and outline the benefits of combining AIOps with observability.


AIOps: Room to Grow its Adoption and Functionality

In truth, there isn't one universally effective set of metrics that works for every team to measure the value that AIOps delivers. This is an issue not just for AIOps but for many ITOM and ITSM technologies as well. In fact, many enterprise IT teams who invested in AIOps in recent years are now carefully watching their deployments to assess their value before deciding whether or not to expand on them.

Still, there's a lot of room for AIOps adoption to grow, because there are many enterprises that haven't adopted it at all. That's why many vendors are trying to position themselves as AIOps players, to be part of a growing market. For this reason, the AIOps market has now gotten crowded.

So how can AIOps as a practice innovate and evolve at this point? What AIOps innovations can deliver unique capabilities that will set it apart from the pack of existing varieties? Clearly, the way to do this is to tailor, expand and apply AI-functionality to observability data. Such a solution would appeal strongly to the DevOps community, and dissolve its historical reluctance and skepticism towards AIOps.

But What is Observability?

However, there's an issue. When you press DevOps pros a little bit and ask them what observability is, you get three very different answers. The first is that observability is nothing more than traditional monitoring applied to a DevOps environment and toolset. This is flat out wrong.

Another meaning you'll hear given to observability is its traditional one: That it's a property of the system being monitored. In other words, observability isn't about the technology doing the monitoring or the observing, but rather it's the self-descriptive data a system generates.

According to this definition, people monitoring these systems can obtain an accurate picture of the changes occurring in them and of their causal relationships. However, it's clear that this view of observability, while related to the second one, is a dead end. It's just a stream of raw data and nothing else.

A third definition is that, compared with traditional monitoring, observability is a fundamentally different way of looking at and getting data from the environment being managed. And it needs to be, because the DevOps world is one of continuous integration, continuous delivery and continuous change — a world that's highly componentized and dynamic.

The way traditional monitoring tools take data from an environment, filter it, and generate events isn't appropriate for DevOps. You need to observe changes that happen so quickly that trying to fit the data into any kind of pre-arranged structure just falls short. You won't be able to see what's going on in the environment.

Instead, DevOps teams need to access the raw data generated by their toolset and environment, and perform analytics directly on it. That raw data is made up of metrics, traces, logs and events. So observability is indeed a revolution, a drastic shift away from all the pre-built filters and the pre-packaged models of traditional monitoring systems.

This definition is the one that serves up a potential for technological innovation and for delivering the most value through AIOps, because DevOps teams do need help to make sense of this raw data stream, and act accordingly.

AI analysis and automation applied to observability can deliver this assistance to DevOps teams. Such an approach would take the raw data from the DevOps environment and give DevOps practitioners an understanding of the systems that they're developing and delivering.

With these insights, DevOps teams can more effectively decide on actions to fix problems, or to improve performance.

So what's involved in combining AIOps and observability?

Metrics, traces, logs and events must first be collected and analyzed. Metrics captures a temporal dimension of what's happening, through its time-series data. Traces map a path through a topology, so they provide a spatial dimension -- a trace is a chain of execution across different system components, usually microservices. Logs and events provide a record of unstructured events.

With AIOps analysis, metrics reveal anomalies, traces show topology-based microservice relationships, and unstructured logs and events provide the foundation for triggering a significant alert.

Machine learning algorithms would then come into play to indicate an uncommon occurrence, pinpoint unusual metrics, traces, logs and events, and correlate them using temporal, spatial and textual criteria. The next step in the process would be the identification of a probable root cause of the problem, based on the history of previously resolved incidents. Then, ideally, automated remedial actions would be carried out.

Clearly, this combination of AIOps and observability would offer tremendous value to DevOps teams, as it would automate the detection, diagnosis and remediation of problems with the speed and accuracy required in their CI/CD environments. This would represent a breakthrough for AIOps: Earning the appreciation of reticent DevOps teams by giving them deep insights into observability data, and unparalleled visibility into their environments.

Will Cappelli is Field CTO at Moogsoft

The Latest

In live financial environments, capital markets software cannot pause for rebuilds. New capabilities are introduced as stacked technology layers to meet evolving demands while systems remain active, data keeps moving, and controls stay intact. AI is no exception, and its opportunities are significant: accelerated decision cycles, compressed manual workflows, and more effective operations across complex environments. The constraint isn't the models themselves, but the architectural environments they enter ...

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.