What Is Observability (o11y)?

Discover what observability is, how it differs from monitoring, and why it's essential for modern IT systems and cloud-native environments.

What Is Observability (o11y)?

  • Have you ever received a call about an application performance problem and felt like you were troubleshooting blindly? This is where observability makes a difference; it is a property of a system that simply refers to the ability to determine a system's internal state by examining the outputs it produces. Imagine an observable system intentionally built to provide all the information you need to diagnose issues, including those you didn't anticipate.

    The term "observability" comes from control theory. It enables you to understand what is wrong and why it's happening. This concept is integral to modern IT, often abbreviated as o11y (with 11 letters between the "o" and the "y"). Observability is about ensuring end-to-end insight into your distributed systems to quickly identify the root cause of any issue.

  • When discussing observability, you'll usually hear about its three pillars, which are the primary types of observability data providing actionable insights into a system. However, as systems become more complex, a fourth pillar is rapidly gaining traction.

    1. Performance Metrics

    Metrics are usually (but not always) time series numerical data used for calculation, aggregation, or averaging. Nothing in the business world can define success as effectively as powerful metrics. Today, businesses apply metrics to almost everything they do, spotting trends at the onset to help determine the best course of action.

    While most monitoring tools can collect metrics from popular platforms and systems to report on trends or anomalies over time, they often provide limited insights when something is broken.

    With an observability solution, metrics can now provide critical data for building responses by measuring precise system performance values. Observability offers the hard facts regarding items such as service-level indicators, latency, and downtime values. The metrics derived from these system data points present organizations with actionable visualizations of overall or specific system performance, enabling them to stay ahead of emerging issues or performance bottlenecks.

    2. Logs Collection and Analysis

    Logs are detailed records of events from every piece of software, user action, and network activity. Logs are a tried and proven way of obtaining valuable information regarding system health.

    For example, an event can be a microservice performing a single database transaction. Underneath this event, there would be multiple components emitting and recording their own log messages. The API making the call to the microservice will log its call, and the microservice code could send custom status messages to the programmatic log handler when it operates. The container service, such as Kubernetes or Docker, would have its own log, and so would the VM's OS running the container in the form of syslog . Additionally, the network will have its own flow logs. Finally, the database engine will record the transaction along with the access information.

    These logs provide you with time-stamped, immutable, step-by-step records of every event a component sees. Alongside this detailed information, logs contain valuable metadata. To have an observable system, each of these logs must be collected and correlated to the event. However, logs alone can't give you a complete picture of system performance.

    Instead of spending time digging into logs on a per-system basis, an observability solution can centralize event and log data alongside other performance insights, giving teams the ability to gain visibility across the entire enterprise. The system can catalog logs for future analysis or trigger specific alert tasks for predetermined events. This significantly reduces response times, enabling teams to develop proactive solutions for preventing recurring issues.

    3. Traces

    Traces record the end-to-end journey of every call made within a distributed system architecture during a unit of work or transaction. A trace will clearly show every touchpoint the transaction interacted with during its course of action. The trace records every call made to fulfill the request, the chain of calls from one touchpoint to another, the times of the calls, and the latency between each hop.

    Tracing issues to find their root cause can be a frustrating manual task in distributed networks. The issue has worsened as networks have grown to include the cloud, Edge, and Internet of Things, resulting in many more routes into, out of, and through your infrastructure than a few years ago.

    However, observability introduces the ability to centralize these tasks for rapid execution of tracing. Called distributed tracing (or distributed request tracing), it can reach across the enterprise to give domain- and system-agnostic visibility into system functions.

    An observability solution equips IT organizations with the framework needed to pinpoint failures quickly across applications, networks, and systems. It provides a one-stop console for continuously monitoring impacted systems until resolution is achieved, which is pivotal in enabling IT operations (ITOps) to ensure service delivery while the end-user experience remains unaffected.

    4. Events

    While sometimes lumped in with logs, events are different. They represent a single, discrete function or action that occurred. Events can be tied to a specific use case, such as a user logging in or an order being placed, and they provide rich, contextual information beyond what a simple log entry might offer.

  • Observability works its magic by gathering various types of telemetry data from software systems. It starts with instrumentation, where cloud-native applications and infrastructure components are set up to generate this data, often using standardized frameworks such as OpenTelemetry. The telemetry is moved to an observability platform, offering a unified view of your entire environment.

    After collecting the data, the platform performs correlation, combining time-series information from multiple sources to deliver a comprehensive view of system activity. With advanced analytics and visualization, you can observe how different system components interact. Distributed tracing enables you to track a single request across your entire environment. Leading observability platforms feature automated discovery and topology mapping, helping you understand real-time relationships between your services. This detailed data allows you to establish and monitor service-level objectives (SLOs). Additionally, many modern observability tools incorporate artificial intelligence for ITOps (AIOps) to automate analysis and help busy teams find solutions more efficiently.

  • The core comparison between observability and monitoring starts with this crucial fact: monitoring is reactive, while observability is based on proactive response.

    • Monitoring:

    Monitoring is the systematic process of collecting and analyzing information, such as logs and performance metrics. Monitoring tools help track errors, identify issues, and send alerts and notifications. Additionally, monitoring helps teams understand the current state of infrastructure and applications.

    • Observability:

    Observability goes beyond monitoring and helps expedite problem resolution by providing actionable insights. An observability strategy will dig deeper into the "what" of occurrences to reveal the underlying "why" (root cause) behind the scenes. These actionable insights are highly accurate, relying on holistic data performance.

    Most enterprises have some form of continuous monitoring for their environment, which usually involves watching and alerting on a set of metrics across hardware and software components. When a metric value exceeds a predefined threshold, an alert is triggered. The operations (Ops) team examines the alarm and investigates the underlying root cause.This is a form of observability where the system exposes its metrics as external output and the monitoring tool observes them. But this is as far as the analogy goes. It's not full observability. Why? Remember, the Ops team must investigate the root cause of the metric value crossing the threshold. They know something went wrong but must do all the legwork by digging deeper. This may involve examining other metrics and correlating them or running diagnostic commands in system consoles. In other words, a monitoring solution tells you something isn't right yet can't tell you why it isn't right. A fully configured observability solution can help prevent this extra work.

  • How does observability differ from application performance management (APM) and monitoring? In this video, learn how observability can assist with deepening your understanding of the holistic health of your environment beyond the application stack and network and what this deeper visibility can help improve.

  • As organizations of all sizes progress their digital transformation initiatives and modernize applications, they still need to manage their complex, diverse, and distributed network, cloud, system, application, and database infrastructures.

    Teams must have visibility across the full IT stack for improved and effective analysis and troubleshooting. In support of these initiatives, the importance of observability is evident in its primary strength: enabling organizations to transition from a reactive to a proactive posture by providing unified insights across their IT ecosystems.

    You can learn more about how observability can help transform your organization by downloading this free eBook.

  • The diversification of IT systems has highlighted gaps in monitoring, as traditional monitoring solutions can capture infrastructure and application telemetry data, providing metrics on uptime and downtime issues. These monitoring tools typically can't aggregate data input from multiple dashboards or existing instrumentation, making them ineffective as a comprehensive monitoring system. This can lead to various teams implementing their own monitoring and infrastructure management tools to handle specific IT issues and requirements. When individual divisions, departments, and IT teams across an organization use single-solution tools, it can exacerbate work silos and further strain budgets.

    Limited Visibility Creates Work Silos

    The partitioning of tools across an organization can create a reliance on disparate (and often duplicate) tooling, where one cannot easily view or analyze data in relation to each other. This ultimately creates working silos between departments, process overload, and an overall lack of escalation visibility or coordinated prioritization.

    Multiple Tools Increase IT Operational Costs

    Toolset creep can lead to insufficient visibility over enterprise assets and introduce potentially costly business risks through performance and hygiene gaps. Without a central source of truth, common activities such as enterprise resource planning often require laborious manual tasks to gain meaningful insights. This makes it difficult to quickly map asset-to-service dependencies with accuracy or speed, which can affect overall business value.

    Inefficient Workflows Lead to Poor Service Delivery

    The astounding flood of telemetry data and notifications generated by having numerous systems-monitoring tools is often overwhelming and can affect the ability to distill actionable insights. Network, cloud, system, application, and database dynamics can create challenges in understanding asset-to-service dependencies, assessing baselines, and meeting SLOs. Less connected insights can make it difficult to identify and resolve problems effectively. The complications of putting together the necessary logging and forensics can make incident response management a nightmare. False positives can't be investigated correctly, and the inability to quickly solve issues leads to issue and alert fatigue. This makes it nearly impossible to predict problems or determine the proper system capacity scaling, causing unpredictable performance bottlenecks, outages, and poor customer experiences.

  • The importance of an observability solution is evident in its primary purpose: to enable organizations to transition from a reactive to a proactive posture by providing unified insights across their entire IT ecosystem.

    Improved Collaboration With Deeper Insights

    Having a single pane of glass for multiple teams across the enterprise can help organizations develop solutions and maintain system readiness more holistically. Your developers and software engineers can see the insights needed from the same platform your Ops team will use. Your security operations can check the logs from the same observation solution also used by development operations (DevOps) and site reliability engineers (SREs).

    An observability solution can help break down operational silos and eliminate shadow ITOps by allowing organizations to explore their infrastructure from a single, seamless platform. This presents new opportunities for cross-team collaboration to resolve issues and improve service delivery, ultimately lowering risk factors for the business.

    Cost Optimization

    An observability solution can provide a path out of the diminishing returns caused by using multiple monitoring tools brought on to solve specific performance issues by providing a comprehensive, integrative approach to optimizing infrastructure management.

    A unified observability platform can help reduce the total cost of ownership by consolidating the number of tools needed to manage all the systems within a distributed network. Implementing an observability solution designed to grow with and offer flexibility throughout your digital transformation and cloud migration journeys can result in significant cost savings and a faster ROI by turning data deluge into business value.

    Process Consolidation

    With observability, workflows focused on optimizing system performance become smoother and easier to manage. The influx of automation options, including analytics, systems management, and troubleshooting, can dramatically evolve day-to-day operations.

    An observability solution can provide enterprises with a centralized dashboard view across complex distributed systems. This is one of the core advantages of observability: the ability to eliminate blind spots in IT infrastructure while bolstering incident responsiveness. With full-stack observability, you can easily pinpoint errors—letting teams focus on fixing them and proactively implementing automated steps to remediate the issue instead of merely finding it.

  • Choosing the right platforms is crucial. If you're searching for an observability solution, consider these essential features:

    • Unified view: Select a platform that consolidates all your data (logs, metrics, and traces) in one location, allowing you to correlate and analyze information without switching between different silos
    • Scalability: Ensure the tool can scale to accommodate the large amounts of data produced by your modern distributed systems
    • Automation: Capabilities such as AIOps and machine learning can greatly reduce your workload by identifying issues and automating incident response
    • Ease of use: An excellent observability tool should be user-friendly and offer robust visualization features, enabling you to access real-time insights quickly
    • APIs and integrations: The platform should seamlessly connect with your existing software development frameworks and the other tools you already use
  • Observability is more than a trendy term. It's a hands-on approach to addressing real-world challenges, empowering IT and engineering teams to gain visibility into their systems and act with confidence. Let's explore some of its most common uses.

    Use Case #1: Performance Monitoring and Optimization

    Instead of simply notifying you when a system slows down, observability enables continuous monitoring and optimization of system behavior for peak performance. It helps uncover hidden bottlenecks, such as a database query that becomes slow only under certain conditions or a service using excessive CPU. This detailed insight lets you proactively refine your applications, ensuring a seamless customer experience and preventing outages.

    Use Case #2: Incident Management and Root Cause Analysis

    During an outage or significant issue, observability serves as your key resource for incident response. Instead of combing through countless log files and dashboards, distributed tracing allows you to swiftly identify the root cause. This minimizes downtime and greatly reduces mean time to resolution. For example, if you receive an alert about a slow API, tracing can reveal that the latency is due to a third-party service, enabling a quick and targeted fix.

    Use Case #3: Security

    By examining logs and tracking requests, you can detect suspicious activities that may signal a security risk or vulnerability. Observability can help you identify unusual login patterns, unauthorized data access, or odd network behaviors that may suggest a security breach.

    Use Case#4: Customer and Business Insights

    By connecting application performance metrics with business data, you can see how system performance affects the customer experience. For example, an e-commerce company might analyze how page load speeds influence conversion rates, providing actionable insights to support improvements. This approach transforms technical metrics into meaningful business intelligence.

  • In software development, DevOps focuses on eliminating silos between development and Ops teams. Observability aligns naturally with this goal by providing DevOps and SRE teams with a unified, in-depth perspective of an application's entire lifecycle, from coding to production.

    With frequent code deployments, it's crucial to detect any issues immediately. Observability equips DevOps and SRE teams with a quick and effective way to monitor new code in production. It enables them to identify bottlenecks, diagnose performance problems, and automate incident response workflows to minimize downtime. This shared visibility fosters a more collaborative and efficient process for developing and supporting software.

  • The emergence of microservices and serverless architectures has made observability an essential requirement. With dozens or hundreds of small services interacting, a single request may pass through multiple apps. Identifying the root cause of an issue in such an environment using traditional monitoring can be extremely challenging.

    This is where distributed tracing excels. Tools that enable observability for microservices and containers allow for tracking a request from the front end to the back end, providing a comprehensive view of its path. Such end-to-end visibility is crucial for managing cloud-native applications and distributed systems built on platforms such as Kubernetes.

  • This field is constantly changing. A major trend is the emergence of open-source frameworks, such as OpenTelemetry, which is here to stay. It represents a vendor-neutral standard that addresses the challenges of proprietary agents and vendor lock-in, giving you greater control over your telemetry data. As a result, you can collect data once and forward it to multiple observability platforms.

    Another significant development is the adoption of AI and machine learning, commonly referred to as AIOps. AI-driven observability platforms are becoming increasingly advanced, moving beyond basic anomaly detection to assist with debugging and forecasting. These solutions can automatically process large volumes of data to uncover hidden problems and anticipate performance issues before they arise. This level of automation enables IT teams to become more proactive, allowing them to concentrate on strategic initiatives instead of constantly responding to incidents.

    Finally, organizations are focusing more on cost management. Given the vast amounts of generated data, it's essential to use intelligent approaches to manage ingestion expenses. This involves utilizing flexible, usage-based pricing and adopting better data management methods, such as sampling or archiving less essential data in more affordable storage options.

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