Observability and digital transformation: from the era of incident resolution to the era of business results

The complexity and scale of today’s digital architectures, combined with the accelerated pace of innovation and software development, increases the risk to system availability, reliability and performance.

One in two companies in France plans to increase its investments in observability to consolidate its tools and obtain a unified real-time view of its architecture, according to the study “Observability Forecast 2022”, carried out by Enterprise Technology Research and commissioned by New Relic in September 2022.

They thus aim to gain in robustness and performance, but above all to improve the customer experience and increase innovation.

Understand the causes to eliminate incidents faster

Whether you serve millions of customers or thousands of businesses worldwide, human error accounts for 49% of IT failures. Most often it happens during routine and essential operations: setting up new versions of software, updating intermediate software, changing the infrastructure, improving security.

The second most frequent category of errors occurs during peak traffic times. It often reveals under-saturation and saturation issues in the architecture or design limitations that compromise scalability. These defects then generate a performance degradation and a system crash.

By providing a fully connected view of all software telemetry data from one location, observability helps identify issues before they impact services, customers and the business. According to the “Observability Forecast” study, only 56% of organizations that have already implemented full stack observability experience low business impact once a week or more, compared to 76.1% for those that have not implemented full observability.

An increase in developer agility and speed

In a post-covid world where more than 50% of global economic activity is conducted through digital channels, businesses must be reactive. Developers need to be able to go from idea to realization, including implementing code, faster and faster and more often.

By using a DevOps approach and a microservices architecture, the developer is able to deploy new releases as needed, much more frequently. Furthermore, with observability, he can instantly validate that these behave as he expects, and in case of a problem, revert to the previous version to correct the errors.

Instead of spending 40% of his time resolving incidents in production, he has more room to improve the resiliency and scalability of his stack. It innovates more, for example by developing more features for customers and product teams. Also according to the “Observability Forecast” study, companies that have achieved maturity in their observability practices are significantly more likely to use full stack observability at all stages of the software development cycle (53% for planning, 46% for building, 51% for expansion and 54% for operation) than the others.

Business benefits and a better customer experience

In recent years, companies have realized that if observability is used to ensure an optimal basis – availability, reliability, performance – it also enables direct economic challenges of efficiency and effectiveness such as increased productivity and lower unit costs to be achieved.

As IT teams better understand what resources they need to deliver better performance, infrastructure costs are optimized. Developers also have more time to understand and take ownership of the customer and user experience of their software architecture. They are thus much better equipped to optimize the growth of the company by improving the conversion rate, the customer experience and the satisfaction of the latter.

The Observability Forecast shows that for around a third of professionals surveyed, observability provides tangible business benefits: availability, performance and reliability (35.6%), operational efficiency (34.6%), customer experience (33.1%), innovation, business and /or revenue growth (25.6%).

CEOs increasingly investing in observability

Businesses are moving from the era of monitoring, which consists of reactive incident resolution, to the era of real-time observability and proactive performance management. Decision makers have understood that the digital challenge is not only to deal with and solve problems? But above all to increase the company’s performance. To do this, CIOs and CTOs know they must consolidate their ecosystem of tools gradually but effectively to simplify and move toward full-stack observability.

But while the survey shows that 78% of them recognize that this full-stack observability will allow them to achieve all of their business goals, agility, efficiency, customer experience, real-time reliability, only 27% of respondents believe they have reached this. scene. This dynamic is therefore well underway, but a large number of companies still have considerable potential to improve their performance and create this associated value.

Companies globally are currently in the observability phase. In France, the trend is the same: 50% of the professionals surveyed plan to increase their observability budget next year and 19% to maintain it. If new digital technologies and artificial intelligence have made it possible to achieve a leap forward in terms of productivity gains and innovation, the widespread use of observability should allow companies to achieve a new stage of growth.

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