Picture this: it’s a sold-out Saturday. The mobile app is pushing seat upgrades, concessions are running tap-to-pay, and the venue’s “smart” cameras are adjusting staffing in real time. Then, within minutes, queues freeze. Kiosks time out. Fans can’t load tickets. A firmware change on a handful of access points creates packet loss that never gets flagged because telemetry from edge devices isn’t normalized or prioritized. The network team is staring at graphs, the app team is chasing a “payments API” ghost, and operations is on a walkie-talkie trying to reroute lines like it’s 1999.
Nothing actually “broke” – but the system behaved like it did. The signal existed in the data, just not in one coherent place, at the right time, in a format anyone could trust.
That’s where the state of observability really is today: tons of data, not enough clarity – especially close to the source, where small anomalies compound into big customer moments.
Why this is getting harder, not easier
Every enterprise now runs on an expanding mix of cloud services, third-party APIs, and edge devices. Tooling has sprawled for good reasons – teams solve local problems fast – but the sprawl works against global understanding. Nearly half of organizations still juggle five or more tools for observability, and four in ten plan to consolidate because the cost of stitching signals after the fact is simply too high.
More sobering: high-impact outages remain expensive and frequent. A majority report that these incidents cost $1M+ per hour; median annual downtime still sits at roughly three days; and engineers burn about a third of their week on disruptions. None of these are “tool problems” – they’re integration, governance, and focus problems. The data is there. It just isn’t aligned.
What good looks like; and why we aren’t there yet
The pattern is consistent: teams that unify telemetry and move toward full-stack observability outperform. They see radically less downtime, lower hourly outage costs, and faster mean-time-to-detect/resolve (MTTD/MTTR). In fact, organizations with full-stack observability experience roughly 79% less downtime per year than those without – an enormous swing that shows what’s possible when data isn’t trapped in silos.
But if the winning patterns is so clear, why aren’t more teams there already?
Three reasons keep coming up in practitioner and leadership conversations:
- Heterogeneous sources, shifting formats. New sensors, services, and platforms arrive with their own schemas, naming, and semantics. Without upstream normalization, every dashboard and alert “speaks a slightly different dialect.” Governance becomes wishful thinking.
- Point fixes vs. systemic upgrades. It’s hard to lift governance out of individual tools when the daily firehose keeps you reactive. You get localized wins, but the overall signal quality doesn’t climb.
- Manual glue. Humans are still doing context assembly – joining business data with MELT, correlating across tools, re-authoring similar rules per system. That’s slow and brittle.
Zooming out: what the data actually says
Let’s connect the dots in plain English:
- Tool sprawl is real. 45% of orgs use five or more observability tools. Most use multiple, and only a small minority use one. It’s trending down, and 41% plan to consolidate – but today’s reality remains multi-tool.
- Unified telemetry pays off. Teams with more unified data experience ~78% less downtime vs. those with siloed data. Said another way: the act of getting logs, metrics, traces, and events into a consistent, shared view delivers real business outcomes.
- The value is undeniable. Median annual downtime across impact levels clocks in at ~77 hours; for high-impact incidents, 62% say the hourly cost is at least $1M. When teams reach full-stack observability, hourly outage costs drop by nearly half.
- We’re still spending time on toil. Engineers report around 30% of their time spent addressing disruptions. That’s innovation time sacrificed to “finding and fixing” instead of “learning and improving.”
- Leaders want governance, not chaos. There’s a clear preference for platforms that are more capable at correlating telemetry with business outcomes and generating visibility without spiking manual effort and management costs.
The edge is where observability’s future lies
Back to our almost-dark stadium. The fix isn’t “another dashboard.” It’s moving control closer to where telemetry is born and ensuring the data becomes coherent as it moves, not after it lands.
That looks like:
- Upstream normalization and policy: standardizing fields, units, PII handling, and tenancy before data fans out to tools.
- Schema evolution without drama: recognizing new formats at collection time, mapping them to shared models, and automatically versioning changes.
- Context attached early: enriching events with asset identity, environment, service boundaries, and – crucially – business context (what this affects, who owns it, what “good” looks like), so investigators don’t have to hunt for meaning later.
- Fan-out by design, not duplication: once the signal is clean, you can deliver the same truth to APM, logs, security analytics, and data lakes without re-authoring rules per tool.
When teams do this, the graphs start agreeing with each other. And when the graphs agree, decisions accelerate. Every upstream improvement makes all of your downstream tools and workflows smarter. Compliance is easier and more governed; data is better structured; its routing is more streamlined. Audits are easier and are much less likely to surface annoying meta-needs but are more likely to generate real business value.
The AI inflection: less stitching, more steering
The best news? We finally have the toolsto automate the boring parts and amplify the smart parts.
- AIOps that isn’t just noise. With cleaner, standardized inputs, AI has less “garbage” to learn from and can detect meaningful patterns (e.g., “this exact firmware + crowd density + POS jitter has preceded incidents five times in twelve months”).
- Agentic workflows. Instead of static playbooks, agentic AI can learn and adapt: validate payloads, suggest missing context, test routing changes, or automatically revert a bad config on a subset of edge devices – then explain what it did in human terms.
- Human-in-the-loop escalation. Operators set guardrails; AI proposes actions, runs safe-to-fail experiments, and asks for approval on higher-risk steps. Over time, the playbook improves itself.
This isn’t sci-fi. In the same industry dataset, organizations leaning into AI monitoring and related capabilities report higher overall value from their observability investments – and leaders list adoption of AI tech as a top driver for modernizing observability itself.
Leaders are moving – are you?
Many of our customers are finding our AI-powered pipelines – with agentic governance at the edge through the data path – as the most reliable way to harness the edge-first future of observability. They’re not replacing every tool; they’re elevating the control plane over the tools so that managing what data gets to each tool is optimized for cost, quality, and usefulness. This is the shift that is helping our Fortune 100 and Fortune 500 customers convert flight data, OT telemetry, and annoying logs into their data crown jewels.
If you want the full framework and the eight principles we use when designing modern observability, grab the whitepaper, Principles of Intelligent Observability, and share it with your team. If you’d like to explore how AI-powered pipelines can make this real in your environment, request a demo and learn more about how our existing customers are using our platform to solve security and observability challenges while accelerating their transition into AI.


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