IT, Telecommunications industries embrace observability for AI and Cloud benefits

Information technology (IT) and telecommunications (telco) organisations are increasingly valuing observability for its role in improving collaboration and decision-making, finds a new report from observability platform for engineers New Relic.

Observability measures how effectively the internal states of a system can be deduced from its external outputs.

The "State of Observability for IT and Telecommunications" report, based on insights from 423 technology professionals and developed alongside the 2023 Observability Forecast, shows how observability is helping organizations manage costly outages and improve team collaboration.

Key trends driving the adoption of full-stack observability include developing cloud-native applications (48%), integrating AI technologies (43%), migrating to multi-cloud environments (40%), and focusing on customer experience management (39%).

Kris Day, Senior Vice President and General Manager at New Relic for Asia Pacific & Japan, emphasized the importance of observability in India's growing 5G market. "To succeed, IT and telco organizations need to harness their data. Observability allows them to see and analyze every aspect of their networks and applications, enabling them to leverage AI, build strong infrastructure, and develop innovative services that drive revenue," Day said.

AI and Observability: A Winning Combination

The report found that 43% of IT and telco organizations see AI as a key reason for adopting observability. Combining observability with AI helps organizations manage large data sets and improve efficiency. It is essential for understanding data, reducing repair times, and fixing code errors. This integration also enables faster alerts and better incident detection and resolution.

Reducing Outages with Fewer Tools

IT and telco organizations experience frequent outages, with 37% reporting weekly outages, costing an average of $12.71 million annually. The report highlights the need for better monitoring and quick issue resolution.

These organizations often use multiple monitoring tools, with 69% using four or more, compared to the average of 63%. This leads to significant time and cost spent on managing these tools. Therefore, 56% of respondents prefer a single platform, and 41% plan to consolidate tools within the next year.

Focus on Security and Customer Experience

Security is crucial, with 96% planning to use security monitoring by mid-2026, showing its importance for IT and telco organizations.

Improving digital customer experience (DCX) is also a priority. IT and telco providers are using digital experience monitoring (DEM) to better engage customers by tracking and optimizing performance. Nearly half (45%) plan to deploy synthetic monitoring in the next one to three years, while 36% and 23% plan to use mobile and browser monitoring, respectively.

Daniel Gomez Blanco, Principal Software Engineer at Skyscanner, praised the benefits of a single observability platform: "Our platform gives one clear view, so we can identify and fix issues before they impact our customers. That’s what truly matters."