State of Observability 2022 Report Reveals Organizations With Mature Observability Practices Significantly Reduce Costs While Increasing Innovation
May 17 2022 - 8:00AM
Business Wire
Global Research Shows Observability Leaders
Save Over $20 Million in Downtime Costs
Splunk Inc. (NASDAQ: SPLK), the data platform leader for
security and observability, in collaboration with the Enterprise
Strategy Group, today released the State of Observability 2022, an
annual global research report that examines how observability is
shaping the future of cutting-edge organizations. The report
surveyed 1,250 observability practitioners, managers and experts
worldwide, revealing that observability is already powering digital
transformation, while highlighting its potential to create
significant savings and attract the best talent to help power
businesses to new heights.
The report reveals that the most sophisticated observability
practitioners (leaders*) are able to cut downtime costs by
90%, from an estimated $23.8 million annually to just $2.5
million, compared to observability beginners. What’s more, leaders
in observability are more innovative and more successful at
achieving digital transformation outcomes and other
initiatives:
- Observability leaders have launched 60% more products or
revenue streams from AppDev teams in the last year compared to
beginners.
- Observability leaders report a 69% better mean time to
resolution for unplanned downtime or performance degradation thanks
to investment in observability.
- 66% of leaders report that their visibility into
application performance is excellent (compared to just 44% of
beginners). Similarly, 64% of leaders report that visibility
into their security posture is excellent (versus 42% of
beginners).
- Twice as many leaders can detect problems associated
with internally developed applications within minutes, resulting in
an estimated 37% better MTTD.
“Our research confirms just how vital observability is for every
business,” said Spiros Xanthos, SVP and General Manager,
Observability, Splunk. “The most sophisticated observability
practitioners have given themselves an edge in digital
transformation while massively cutting costs associated with
downtime and boosting their ability to out-innovate the
competition. These observability leaders are more competitive, more
resilient and more efficient as a result.”
Increased cloud complexity also highlights how imperative
becoming an observability leader is for all enterprises.
Organizations have been moving to the cloud for more than a decade
and in more recent years, hybrid architectures and multicloud
operations have complicated many organizations' cloud ecosystems.
Seventy percent of respondents are using multiple cloud
services, and the shift to multicloud has increased complexity:
- 75% of respondents have many cloud-native applications
that run in multiple environments, either multiple public clouds or
a combination of on-premises and public clouds.
- Leaders are even more likely to report commonly running
cloud-native applications (92% versus 68% of
beginners),
- 36% of organizations (and 47% of leaders) that
use the public cloud to run internally developed applications use
three or more different public clouds today, and 67% expect
to do so within 24 months.
While the challenges of observability are global, the report
reveals that there are significant variations across countries:
- Canadian organizations trail in their observability journey:
79% are beginners (versus 58% averaged across other
countries) and just 2% are leaders (versus 10% in the
rest of the world).
- French organizations more often report that their investments
in AIOps technologies have helped them achieve lower mean time to
resolution (MTTR) (58% versus 43% averaged across
other countries).
- Japanese organizations have had noteworthy success using AIOps
technologies to help solve recurring issues in their environment:
74% report that this has been a benefit of AIOps, versus a
55% average across other countries.
- Indian organizations are further along in the observability
journey: Only 29% are rated as beginners, versus 62%
on average across other countries.
For organizations across the globe looking to invest in
observability, a lack of staff is one of the biggest hindrances in
improving observability. Among respondents, 95% reported
challenges in finding staff to monitor and manage infrastructure
and application availability, while 81% of enterprises said
a lack of staff had led to projects and initiatives failing.
“Organizations that use the right observability tools and
practices and build to attract talent stand the best chance of
becoming leaders in observability,” said Xanthos. “By tackling data
volume and variety with AI, organizations can alleviate staffing
concerns, while at the same time investing in skills training to
draw in the very best talent available. Consolidating vendors and
rationalizing tools will also allow companies to curate the vendor
and tool set that gives them the most visibility with the least
drag, lessening the potential for staff burnout in the
process.”
For more insights and recommendations from The State of
Observability 2022, please visit the Splunk website.
*The report defines observability leaders as organizations with
24 months of experience with observability and which have the
ability to correlate data across all observability tools, have made
progress with vendor rationalization, and have begun to adopt AI/ML
technology within their observability toolsets.
Methodology
The global survey was conducted from early-February through
mid-February 2022 in partnership with the Enterprise Strategy
Group. The 1,250 application development and IT operations leaders
who spend more than half of their time on observability issues were
drawn from 11 regions: Australia, Canada, France, Germany, India,
Japan, The Netherlands, New Zealand, Singapore, The United Kingdom
and the United States.
About Splunk Inc.
Splunk Inc. (NASDAQ: SPLK) helps organizations around the world
turn data into doing. Splunk technology is designed to investigate,
monitor, analyze and act on data at any scale.
Splunk, Splunk>, Data-to-Everything, D2E and Turn Data Into
Doing are trademarks and registered trademarks of Splunk Inc. in
the United States and other countries. All other brand names,
product names, or trademarks belong to their respective owners. ©
2022 Splunk Inc. All rights reserved.
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version on businesswire.com: https://www.businesswire.com/news/home/20220517005412/en/
Jennifer Lopez Splunk Inc. press@splunk.com
Investor Contact Ken Tinsley Splunk Inc.
ir@splunk.com
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