Report: Only 27% of orgs have observability over their full stack

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New Relic’s 2022 Observability Forecast is the industry’s largest survey of IT practitioners and decision-makers to understand the current state of observability. Their definition of observability is the ability to measure how a system is performing and identify issues and errors based on its external outputs.

The 2022 Observability Forecast offers a detailed view of how this practice is shaping engineering and the technologies of the future. Of those who had mature observability practices, 100% indicated that observability improves revenue retention by deepening their understanding of customer behaviors compared to the 34% whose practices were less mature.

Based on the report’s definition of full-stack observability, only 27% of survey respondents’ organizations have achieved it. And an even smaller percentage — 3% — said that their organization has already prioritized/achieved full-stack observability. Full-stack observability, as used in this report, is achieved by organizations that deploy specific combinations of observability capabilities, including customer experience monitoring/DEM (front-end), services monitoring, log management and environment monitoring (back-end).

Observability and outages

The data supports a strong correlation between achieving or prioritizing full-stack observability and experiencing fewer outages, improved outage detection rates, and improved resolution. For example, 34% of respondents who indicated that they had already prioritized or achieved full-stack observability were also less likely to experience the most frequent high-business-impact outages (once per week or more), compared to the 52% who had not.

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In addition, 68% of respondents who said they had already prioritized or achieved full-stack observability also said it takes less than 30 minutes to detect high-business-impact outages, compared to the 44% that had not.

Image source: New Relic

The ideal

The research implies that the ideal state of observability is one where engineering teams monitor the entire tech stack in all stages of the software development life cycle, employ mature observability practice characteristics, and have unified telemetry data and a unified dashboard or visualization of that data — ideally in a single, consolidated platform. Nearly half of all respondents (47%) said they prefer a single, consolidated platform, yet just 2% said they use one tool for observability.

More than half (52%) of respondents, including 57% of C-suite executives, expected observability budgets to increase over the next year.

Respondents foresee their organizations needing observability for a variety of trending technologies, including artificial intelligence (AI), 5G, and Web3. Looking out to 2025, the report estimates that nearly all expect to deploy observability capabilities like network monitoring, security monitoring, log management and more.

The report is also notable in that its raw data is open and available for public download.

Methodology

For the 2022 Observability Forecast, New Relic surveyed 1,614 IT professionals across 14 countries in North America, Europe and the Asia Pacific region between March and April 2022.

Read the full report from New Relic.

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