ANZ leads in observability investment & business value

Splunk has published the State of Observability 2024 report, illustrating how observability enhances IT environments globally.

Findings show that organisations in Australia and New Zealand (ANZ) are surpassing other nations in observability spending and the resultant business value achieved. ANZ entities invest AUD $3.4 million annually in observability tools, which generates an impressive AUD $8.3 million in business value, outstripping the AUD $4.9 million average reported in other countries.

Christine Low, Head of Observability at Splunk ANZ and Japan, commented, "Australia and New Zealand's approach to observability reflects a growing focus on digital resilience to deliver business value. The growing adoption of observability across the region indicates that it is seen as more than just a tool - it is viewed as a strategic enabler for IT teams to maintain visibility over complex systems, innovate rapidly, and resolve issues before they escalate. This trend continues to position ANZ as a front runner in innovation by leveraging observability to drive long-term success."

ANZ organisations not only lead in spending but also demonstrate a holistic integration of observability with innovation. The report highlights that 65% of ANZ organisations feature hybrid observability and security teams, compared to a global rate of 53%. Such configurations facilitate quicker incident resolution, as 86% of these organisations achieve mean time to resolution (MTTR) within mere hours or minutes.

Globally, observability has evolved into a significant competitive differentiator. Observability leaders secure a 2.6x return on investment through enhancements in operational efficiency and customer satisfaction. These benefits are motivating 86% of global organisations to increase their observability investments.

Patrick Lin, Senior Vice President and General Manager, Observability at Splunk, stated, "Building a leading observability practice means being obsessed with delivering incredible digital experiences to your customers, and embedding that mindset into every decision. Our report shows this mindset pays off. Leaders not only achieve greater success in mitigating downtime, they also see greater developer innovation and speed."

OpenTelemetry, an open-source standard for data collection, plays a critical role in observability practices. The report states that 58% of respondents' observability solutions depend on OpenTelemetry, with 78% of leaders endorsing its use. Furthermore, 65% indicate that this open-source project improves data control and ownership, while facilitating innovation and resilience.

The study also highlights the increasing utilisation of AI and ML (machine learning) in observability. With a significant rise from the previous year, 97% of respondents are employing AI and/or ML to enhance operational efficiency. These technologies facilitate advanced data analysis, anomaly detection, and automation, reducing the time to derive actionable insights.

Platform engineering emerges as a vital discipline, with 73% of surveyed organisations practising it extensively. This approach allows software engineers to use common toolchains and self-service platforms, thereby prioritising innovation over tool management. The report links platform engineering to improved IT operations efficiency, application performance, and developer productivity.

ANZ organisations are not only noted for their high observability spending but also excel in alert accuracy, boasting a 67% alert fidelity rate, the highest globally. They have been particularly proactive in establishing roles that encompass both observability and security aspects, ensuring rapid incident resolution.

While ANZ is positioned as a leader in observability, Christine Low cautions against complacency. "However, this level of adoption shouldn't lead to complacency. As digital environments continue to evolve, ANZ organisations need to continuously refine their observability strategies to stay ahead of emerging complexities and risks," she advised.