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groundcover 2024 Predictions: Navigating Cost-Effective Observability: Trends Shaping 2024

vmblog-predictions-2024 

Industry executives and experts share their predictions for 2024.  Read them in this 16th annual VMblog.com series exclusive.

Navigating Cost-Effective Observability: Trends Shaping 2024

By Shahar Azulay, CEO and Co-Founder, groundcover

As we step into 2024, the business landscape continues to evolve, with organizations steering their strategies towards efficiency and cost optimization. Building on the trends of late 2022 and the entirety of 2023, the upcoming year promises to uphold the banner of fiscal prudence and streamlined operations. A key focus in this pursuit has been on managing the costs associated with observability solutions, a trend that is set to intensify in the coming months. The coming year is anticipated to be characterized by a strategic approach to managing observability costs and making informed decisions about adopting these critical solutions.

The Rise of Cost Monitoring Tools

According to recent data, 9% of the IT budget is being spent on observability, an average cost of $1.72M. The price is so high, that over 70% of teams do not even opt to have a full observability  solution in place. But when companies cut down on observability, the price is high as well. On average, companies suffer 2 high impact outages per month with an average MTTR of 30 minutes or more. These outages result in more than $7M in losses per year due to hidden costs such as troubleshooting resources, customers dropping out, damaged reputation and more.

The year 2023 saw a surge in attention towards observability solutions, acknowledging their pivotal role in enhancing system performance and troubleshooting. In 2024, this focus is set to intensify, with organizations recognizing the potential impact of observability expenses on their overall budget. Small and medium-sized businesses (SMBs) are expected to lead the charge in making discerning choices based on future projections, considering the significant contribution observability solutions can make to the overall expenditure.

Diverse Pricing Models for Observability Solutions

Recognizing the need for flexibility and control over costs, observability vendors are expected to introduce more diverse pricing models in 2024. This departure from traditional volume-based models aims to provide organizations with alternatives that align more closely with their specific needs. Options such as paying based on queried or used data, paying by seats, or paying by infrastructure size alone will offer customers greater customization in managing their observability expenses.

DevOps Teams: Key Influencers in Observability Decision-Making

DevOps teams, already pivotal in orchestrating cost-effective cloud environments, are poised to play an even more influential role in shaping observability decisions in 2024. Beyond safeguarding cloud environments, these teams will be actively involved in selecting observability stacks that not only enhance system performance but also align with cost-effectiveness. The trend signifies a deeper integration of DevOps teams into the decision-making process, underlining their importance in steering organizations towards observability solutions that offer a wide coverage over all the organization's needs, and offer longevity in future scales, balancing efficiency and cost.

Consolidation for Improved Observability Management

In a bid to streamline operations and manage costs effectively, organizations will increasingly focus on consolidating observability tools. This trend aims to reduce complexity by intersecting tools across various departments, such as DevOps, Site Reliability Engineering (SRE), and development. The consolidation effort is geared towards creating a more cohesive workflow and enhancing efficiency in the observability management process.

As we navigate the complexities of 2024, the spotlight on observability solutions shines brighter than ever. Organizations, particularly SMBs, are set to make strategic decisions based on projected costs, opting for multi-year deals and embracing diverse pricing models. DevOps teams will emerge as key influencers, not only in cloud management but also in shaping observability strategies that strike the right balance between system performance and cost-effectiveness. The year ahead promises a more nuanced and deliberate approach to observability, ensuring that organizations harness its power while keeping a keen eye on the bottom line.

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ABOUT THE AUTHOR

Shahar Azulay, CEO and Co-Founder, groundcover

Shahar Azulay 

Shahar Azulay, CEO and Co-Founder of groundcover, the startup reinventing the cloud-native application performance monitoring domain with eBPF, is a serial R&D leader. Shahar brings experience in the world of cybersecurity and machine learning having worked as a leader in companies such as Apple, DayTwo, and Cymotive Technologies. Shahar spent many years in the Cyber division at the Israeli Prime Minister's Office and holds three degrees in Physics, Electrical Engineering and Computer Science from the Technion Israel Institute of Technology as well as Tel Aviv University. Shahar strives to use technological learnings from this rich background and bring it to today's cloud native battlefield in the sharpest, most innovative form to make the world of dev a better place.

Published Monday, December 18, 2023 7:30 AM by David Marshall
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