Key Insights from the 2025 Observability and Telemetry Report
Introduction to the Observability Report
Sawmills.ai's 2025 State of Observability & Telemetry Report has brought to light significant insights regarding how enterprises handle telemetry data. The survey delves into the practices of DevOps and engineering leaders, revealing that an astonishingly low 13% of telemetry data is effectively utilized. As data volumes soar, organizations face rising costs and challenges in distinguishing valuable signals from mere noise.
Understanding the Telemetry Landscape
The findings reveal a landscape where companies are inundated with telemetry data, yet much of it remains unleveraged. Despite high volumes of data being ingested, enterprises struggle to separate actionable insights from irrelevant information, leading to wasted resources as they spend a considerable amount on observability.
The Challenge of Data Utilization
According to the report, about 84% of surveyed companies report that they use less than a quarter of their collected telemetry. This inefficiency not only strains budgets but also hampers timely issue resolution. With an average spend of nearly one million dollars annually on observability solutions, companies are realizing the pressing need to optimize their use of telemetry data.
Survey Insights from Industry Leaders
The survey conducted among senior figures in DevOps across various organizations has uncovered a pattern of tool overload, with 86% of participants utilizing two or more observability platforms. This blend of commercial tools, such as Datadog and New Relic, with open-source alternatives like Grafana and Prometheus, can sometimes create a fragmented monitoring environment that further complicates data analysis and increases costs.
Emerging Trends in Observability
As organizations navigate these challenges, the report highlights a growing interest in integrating artificial intelligence into observability practices. A significant 63% of companies express interest in developing AI agents dedicated to managing telemetry efficiently. This shift underscores a recognition that traditional manual processes are insufficient in the face of modern data demands.
The Role of AI in Enhancing Observability
Ronit Belson, CEO of Sawmills.ai, noted that AI-driven approaches are increasingly seen as a solution for maximizing the utility of telemetry data. By employing AI tools, teams can filter and direct important data to observability solutions in real time, potentially alleviating costs and enhancing the reliability of service delivery.
Key Takeaways from the Report
The report systematically lays out several key takeaways that summarize the findings:
- Data wastage is rampant, with an average of only 13% of telemetry being used.
- Enterprises face increasing costs, with many spending over $1 million on observability.
- Tool proliferation leads to inefficiencies and challenges in managing data effectively.
- Organizations prioritize improving the quality of data, with many expressing dissatisfaction with current providers.
Conclusion and Future Outlook
The observations presented in this report are not only indicative of the current state of telemetry usage but also signal a need for transformation in how organizations approach data management. As firms seek effective strategies to leverage their observability tools, embracing AI-driven solutions is likely to be a key focus moving forward.
Contact Information
For further inquiries, reach out to Sawmills. Winston Bowden can be contacted at 919-219-9610 or via email.
Frequently Asked Questions
What is the main focus of the 2025 State of Observability Report?
The report examines how enterprises use telemetry data, revealing that only a small portion of it is effectively utilized.
How much do enterprises typically spend on observability?
On average, enterprises spend nearly $1 million annually on observability solutions.
What role does AI play in observability according to the report?
AI is seen as a key enabler to manage telemetry data more efficiently, helping teams reduce costs and improve data quality.
Why is tool sprawl a concern for companies?
Using multiple observability platforms can lead to inefficiencies, increased costs, and complexity in managing telemetry data.
What should companies do to improve their observability practices?
Teams should consider optimizing their data usage and integrating AI solutions to enhance their observability efforts.
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