Cutting costs of digital downtime with observability


By Ernie Hug, Area Vice President of ANZ Region at Splunk
Wednesday, 27 September, 2023

Cutting costs of digital downtime with observability

Just as an engine needs fuel to operate, observability is crucial to reducing outages, improving app reliability, growing revenue, strengthening customer experience (CX) and establishing digital resilience. In today’s rapidly evolving tech landscape, where systems have become increasingly intricate and interconnected, observability acts as an indispensable tool for understanding and managing complex environments.

A vital cog

An incredibly vital cog in a behemoth machine, observability offers the ability to gain insights into the internal states of these systems by collecting and analysing relevant data. It involves monitoring various metrics, logs and traces to obtain a comprehensive view of how the systems are functioning. By having this visibility, organisations can better understand the health, performance and behaviour of a business’s systems.

With the constant technological advancements, including the rise of AI, deep learning breakthroughs and quantum computing, the role of observability in managing today’s increasingly intricate technology environments is paramount. While exciting, these advances bring new challenges and complexities, making observability essential to ensuring the reliability, performance and security of these cutting-edge technologies.

Splunk’s State of Observability 2023 report, based on annual research conducted in collaboration with Enterprise Strategy Group, surveyed over 1000 observability practitioners, managers and experts. The study sheds light on how industry leaders are integrating observability into daily operations and serves as a cautionary tale — those who fail to embrace observability will lag behind the rapid pace of technological advancement.

With continuous whispers of an impending recession, global companies are prompted to reconsider financial strategies. A substantial 76% of respondents report that digital downtime — and the lack of an observability leader in place — can cost a company up to $500,000 per hour. This significant outlay underscores the importance of expediting issue resolution as a means to mitigate unforeseen costs.

Developing strategic vision

Observability leaders play a crucial role in developing and articulating a strategic vision for observability within an organisation. The less time a company spends rectifying digital downtime, the more can be invested in the overall growth and profitability of a business. Leaders experience 33% fewer outages per year than beginners — on average, beginners report six outages, while leaders experience two.

Understanding that deep-tech jargon can at times be daunting for those who don’t specialise in the field, observability leaders can act as a bridge between various teams and departments, fostering collaboration and alignment. They often work closely with engineering, operations, product and business teams to ensure that observability is integrated into different aspects of the organisation. They facilitate communication, break down silos and promote a shared understanding of observability’s value across the company. 95% of those surveyed say their observability leaders are collaborating more with line-of-business leaders on resilience strategies, which includes investing in solutions that recover customer services faster and remediate incidents more efficiently.

In the ANZ region, organisations have established themselves as leaders in observability practices, surpassing global standards and positioning themselves as leaders in the space. With only 25% considered beginners, ANZ outperforms the global average of 34%, indicating a higher level of maturity.

One defining trend within the ANZ region is the strong focus on resilience. A remarkable 55% of ANZ organisations have implemented a formal resilience approach that spans critical systems, surpassing the global average of 39%. Recognising the need to fortify infrastructure, ANZ organisations are dedicated to ensuring their systems can withstand potential disruptions effectively. ANZ organisations also demonstrate a platform-oriented approach to observability. While expanding the capabilities of their observability toolsets, 53% indicate their efforts to enhance their tools.

These trends exemplify the ANZ region’s commitment to advancing observability practices within organisations. By prioritising resilience, leveraging centralised IT teams and adopting a platform-oriented approach, ANZ organisations position themselves for enhanced observability capabilities and improved operational efficiency.

In today’s fast-paced world of technology, keeping things running smoothly is a top priority for businesses. And when it comes to providing the best customer experiences, there’s a direct connection between reducing disruptions and keeping customers happy. Observability is like having a secret weapon that helps businesses navigate the complexities of their software and infrastructure — a true game changer for modern organisations.

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