Observability: The New Business Catalyst in the Age of AI

A Shift in Perspective

In an era where digital experiences govern customer engagement, the importance of observability in the business landscape has never been clearer. Recently, Cisco unveiled the State of Observability 2025: The Rise of a Business Catalyst report, marking five years of comprehensive analysis into this transformative field. The groundbreaking study highlights how observability has transcended its traditional IT boundaries to become a strategic focal point for organizational success.

The findings draw from an extensive survey involving 1,855 ITOps and engineering professionals worldwide, underscoring that observability is now considered essential not just for tech teams but also within boardrooms. In today’s fast-paced business environment, organizations are increasingly dependent on observability practices to decipher data trends, improve customer satisfaction, and inform high-stakes strategic decisions.

Key Insights: A Catalyst for Growth

The impact of observability is multifaceted, influencing various aspects of business performance. According to the report, a significant 74% of respondents noted improvements in employee productivity, while 65% attributed revenue growth to insightful observability practices. Furthermore, a notable 64% reported that these practices positively affect product roadmaps, marking observability as a foundational element in contemporary business strategy.

Patrick Lin, Senior Vice President and General Manager of Observability at Splunk, succinctly captures this shift: “Observability practitioners are becoming critical stakeholders to key business decisions in customer engagement strategies, product roadmaps and more.” Lin emphasizes the comprehensive workflow of observability—from data gathering to actionable insights—as a vital driver of business improvement.

Navigating the AI Landscape

As the tech sphere embraces artificial intelligence, observability practices too are evolving. The report indicates that while organizations recognize the potential of AI to enhance incident response and troubleshooting, they often find themselves grappling with unprecedented challenges. A staggering 52% of respondents reported facing numerous false alerts, and 59% struggled with a plethora of disparate tools.

Nevertheless, the adoption of AI in observability workflows is on the rise: 76% of those surveyed reported that they regularly utilize AI-powered tools. The expectation is clear; AI is not merely a trend but a tool that, when effectively harnessed, can free up time for innovation and product development. Predictions from respondents also suggest that AI will play a critical role in improving troubleshooting processes and detecting security vulnerabilities.

However, with great power comes complexity. The report notes that 47% of participants find monitoring AI workloads challenging, while 40% identify a lack of expertise as a barrier to effective AI integration. To overcome these hurdles, there’s a pressing need for organizations to invest in training observability practitioners to adeptly manage these sophisticated workloads.

OpenTelemetry: An Industry Standard

Among the significant innovations discussed in the report is OpenTelemetry, an open-source project established by the Cloud Native Computing Foundation. This framework has emerged as the industry standard for collecting essential data such as traces, metrics, and logs. The advantages of OpenTelemetry are manifold: organizations that leverage this tool benefit from richer data collection with reduced technical debt, enabling improved outcomes from generative AI initiatives.

The report also highlights that 72% of OpenTelemetry users see a positive impact on revenue growth. More compellingly, those identified as “power users” experience three times the improvement in employee productivity and double the enhancement in customer experience compared to their non-utilizing counterparts.

Leading the Charge: Observability and ROI

Interestingly, the report categorizes a distinct group of organizations as “observability leaders,” which have skillfully navigated the complexities of the digital age to achieve superior business results. These leaders are more inclined to adopt innovative practices like OpenTelemetry, fostering collaborative relationships across observability, security, and operational teams.

Their outcomes are telling: these leaders generate an annual ROI of 125% from their observability efforts, significantly surpassing their non-leader peers. Additionally, they exhibit impressive capabilities in root cause analysis and data sharing among diverse teams, enhancing overall organizational resilience and responsiveness.

As businesses adapt to the rapid changes brought about by technological advancement, the role of observability emerges as a crucial differentiator. The findings from the State of Observability 2025 report offer a roadmap for companies keen to thrive in an increasingly data-centric, AI-driven world.

Conclusion

Observability is positioning itself as a foundational cornerstone for modern business innovation and resilience. With actionable insights that can drive smarter decisions and faster responses to market demands, organizations that embrace observability practices will likely lead the charge into a future characterized by ever-increasing complexity and opportunity.