Second annual Observability Forecast — the only
study of its kind to open-source its raw data — surveys 1,614
practitioners and IT decision-makers and reveals observability
drives increased revenue retention and innovation
New Relic (NYSE: NEWR), the observability company, published the
2022 Observability Forecast report, which captures insights
into the current state of observability and its growth potential.
As IT and application environments increasingly move toward
complex, cloud-based microservices, the research found technology
professionals have bold plans to ramp up observability capabilities
to get ahead of issues that could impact customer experience and
application security. Nearly three-quarters of respondents said
C-suite executives in their organization are advocates of
observability, and more than three-quarters of respondents (78%)
saw observability as a key enabler for achieving core business
goals, which implies that observability has become a board-level
imperative.
The largest study of its kind, the second annual Observability
Forecast from New Relic and ETR had 1,614 respondents, including
1,044 practitioners — day-to-day users of observability tools — and
570 IT decision-makers across 14 countries to understand their
current use of observability tools and approaches, as well as their
perspectives on the future of observability. The report also
reveals the technologies they believe will drive further need for
observability and the benefits of adopting an observability
practice. For example, 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.
According to the research, organizations today monitor their
technology stacks with a patchwork of tools. At the same time,
respondents indicated they longed for simplicity, integration,
seamlessness, and more efficient ways to complete high-value
projects. Moreover, as organizations race to embrace technologies
like blockchain, edge computing, and 5G to deliver optimal customer
experiences, observability supports more manageable deployment to
help drive innovation, uptime, and reliability. The 2022
Observability Forecast found:
- Only 27% had achieved full-stack observability by the report’s
definition – the ability to see everything in the tech stack that
could affect the customer experience. Just 5% had a mature
observability practice by the report’s definition.
- A third (33%) of respondents said they still primarily detect
outages manually or from complaints, and most (82%) used four or
more tools to monitor the health of their systems.
- More than half (52%) of respondents said they experience
high-business-impact outages once per week or more, and 29% said
they take more than an hour to resolve those outages.
- Just 7% said their telemetry data is entirely unified (in one
place), and only 13% said the visualization or dashboarding of that
data is entirely unified.
- Almost half (47%) said they prefer a single, consolidated
observability platform.
- Respondents predicted their organizations will most need
observability for artificial intelligence (AI), the Internet of
Things (IoT), and business applications in the next three
years.
“Today, many organizations make do with a patchwork of tools
that require extensive manual effort to provide fragmented views of
their technology stacks,” said Peter Pezaris, SVP, Strategy and
User Experience at New Relic. “Now that full-stack
observability has become mission critical to modern businesses, the
Observability Forecast shows that teams are striving to achieve
such a view so that they can build, deploy, and run great software
that powers optimal digital experiences.”
Achieving Full-Stack Observability Among the report’s key
takeaways, 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. 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.
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.
Survey respondents said some of the main challenges preventing
them from achieving full-stack observability are a lack of
understanding of the benefits, too many monitoring tools,
un-instrumented systems, and a disparate tech stack.
Benefits of Observability According to the Observability
Forecast, developers and engineers seek solutions that will make
their lives better and easier. When New Relic and ETR asked
practitioners themselves how observability helps developers and
engineers the most, they found:
- More than a third (36%) believe observability increases their
productivity and enables them to find and resolve issues
faster.
- About three in 10 said observability enables cross-team
collaboration (32%) and improves their skillset or hireability
(31%).
- More than a quarter (28%) felt that it increases their ability
to innovate.
Ambitious Deployment Plans When asked about the top
trends driving observability needs at their organizations,
respondents said risk mitigation, cloud-native application
architectures, customer experience, and adoption of open-source
technologies were among the highest drivers. Challenges aside,
respondents see observability’s bottom-line benefits and expect to
deploy additional observability capabilities — including AIOps,
alerts, and serverless monitoring — in the next three years (the
report focuses on 17 capabilities in all).1
- Just 3% indicated that their organizations have all 17
observability capabilities deployed.
- By 2025, nearly all respondents expected to deploy capabilities
like network monitoring, security monitoring, and log management,
as well as less common capabilities like Kubernetes monitoring,
with the majority indicating they would have 88–97% of the 17
observability capabilities deployed. This finding suggests that
most organizations will have robust observability practices in
place by 2025.
“Observability by its very nature must look at the full stack of
data available. Looking at a single layer provides only a silo
view. To deliver the digital experience necessary to remain
competitive, enterprises must go beyond infrastructure and make
their digital business observable,” Gartner®, Innovation Insight
for Observability, By Padraig Byrne and Josh Chessman, Refreshed 9
March 2022.*
Market Opportunities As they pursue aggressive
observability capability deployment plans, 72% of respondents
expected to maintain or increase their observability budgets next
year. More than half (52%) of respondents, including 57% of C-suite
executives, expected observability budgets to increase over the
next year. This includes 14% of all respondents and 16% of C-suite
executives who expected to increase budgets significantly or
extensively — and the market opportunity is sizable.
Looking ahead, respondents foresee their organizations needing
observability for a variety of trending technologies, including AI,
5G, and Web3. C-suite executives anticipate needing observability
most for AI (51%), IoT (48%), edge computing (38%), and blockchain
(36%) in the next three years.
The New Relic 2022 Observability Forecast is available today.
For more information, visit:
- Download the full report.
- Download the report infographic.
- Read the blog post on the report.
- Download the raw data.
Research Methodology: New Relic and ETR surveyed 1,614
technology professionals in 14 countries across Asia Pacific,
Europe, and North America. Of the respondents, 65% were
practitioners (developers and engineers) and 35% were information
technology decision-makers (C-suite executives and non-executive
managers). The survey was conducted in March and April 2022 by the
research firm ETR. New Relic is the first in the observability
industry to make its raw survey data open and available to the
public for download.
About New Relic As a leader in observability, New Relic
empowers engineers with a data-driven approach to planning,
building, deploying, and running great software. New Relic delivers
the only unified data platform that empowers engineers to get all
telemetry—metrics, events, logs, and traces—paired with powerful
full stack analysis tools to help engineers do their best work with
data, not opinions. Delivered through the industry’s first
usage-based consumption pricing that’s intuitive and predictable,
New Relic gives engineers more value for the money by helping
improve planning cycle times, change failure rates, release
frequency, and mean time to resolution. This helps the world’s
leading brands including adidas Runtastic, American Red Cross,
Australia Post, Banco Inter, Chegg, GoTo Group, Ryanair,
Sainsbury’s, Signify Health, TopGolf, and World Fuel Services (WFS)
improve uptime, reliability, and operational efficiency to deliver
exceptional customer experiences that fuel innovation and growth.
www.newrelic.com.
Forward-looking statements This press release contains
“forward-looking” statements, as that term is defined under the
federal securities laws, including but not limited to statements
regarding identified market trends, including any anticipated
benefits, results and future opportunities related thereto. The
achievement or success of the matters covered by such
forward-looking statements are based on New Relic’s current
assumptions, expectations, and beliefs and are subject to
substantial risks, uncertainties, assumptions, and changes in
circumstances that may cause New Relic’s actual results,
performance, or achievements to differ materially from those
expressed or implied in any forward-looking statement. Further
information on factors that could affect New Relic’s financial and
other results and the forward-looking statements in this press
release is included in the filings New Relic makes with the SEC
from time to time, including in New Relic’s most recent Form 10-Q,
particularly under the captions “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations.” Copies of these documents may be obtained by visiting
New Relic’s Investor Relations website at http://ir.newrelic.com or
the SEC's website at www.sec.gov. New Relic assumes no obligation
and does not intend to update these forward-looking statements,
except as required by law.
____________________ 1 According to the New Relic 2022
Observability Forecast report, capabilities, not to be confused
with characteristics, are specific components of observability. New
Relic asked survey respondents to tell them which of 17 different
observability capabilities they deployed.
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version on businesswire.com: https://www.businesswire.com/news/home/20220914005057/en/
Media Contact Elena Keamy New Relic, Inc. PR@newrelic.com
Investor Contact New Relic, Inc. 503-336-9280 IR@newrelic.com
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