New Relic today released its State of Observability for Telecommunications and Technology report, which reveals the dramatically different approaches to observability adoption being taken by these two industries. Surveying over 500 engineering leaders and IT team members at telecommunications and technology companies, the report is based on data from the New Relic 2025 Observability Forecast. The report reveals a link between companies using AI and realizing a strong return on investment (ROI) by adopting observability to monitor AI systems. The data also suggests that telcos are betting big on AI-powered observability, while technology companies lead the way in traditional monitoring capabilities.
Outages are frequent and costly
The research reveals
that 57% of telcos and 27% of technology respondents experience
high-business-impact outages weekly or more. The cost of this downtime is
staggering and a shared concern for both industries. High-impact outages cost
telcos an average of $2 million per hour, compared to $1.6 million per hour for
technology companies. For technology companies, outages can be linked to
revenue loss and operational problems, but for telcos, the stakes are higher.
An outage can represent a public safety crisis with implications for regulatory
action.
Two paths to
observability; one strong focus on AI adoption
Telcos are taking an AI-focused approach to observability adoption, with 74% already adopting AI monitoring; a figure that significantly outpaces the global average of 54% across all industries. Less than 52% of technology companies are currently deploying AI monitoring, but 94% plan to do so in the next three years. Technology organizations have also taken a methodical, bottom-up approach towards observability, with 71% currently deploying alerts and network monitoring and 69% using Continuous Integration/Continuous Deployment (CI/CD) practices. They also have high deployment rates of foundational capabilities like infrastructure monitoring, Application Performance Monitoring (APM) and distributed tracing. Despite strategic industry differences, the push toward advanced automation is unifying. AI technologies are the top strategic driver for observability adoption in both industries, cited by 32% of telcos and 38% of technology companies.
Observability creates a strong return on investment
Both telcos and tech
organizations see strong returns from their observability investments, with 58%
of telcos and 49% of tech companies reporting a ROI of 2-3x or more.
Additionally, 10% oftelco respondents report between 5-10x returns, while 50%
of respondents state that it helps them achieve business KPIs - well above the
overall average of all respondents at 36%.
"This data is
powerful because it shows more than one path to observability maturity. For
telcos, they face extreme pressure from high outage costs and are successfully
leapfrogging traditional monitoring to go AI-first, while IT organizations are
leveraging their strengths by building a developer-centric foundation,"
said New Relic Chief Technology Strategist Nic Benders. “For both industries,
observability is no longer just a technical tool; it is a key strategy driving
business performance as well as operational stability across both the telecommunications
and technology industries."
Other key findings
from the report include:
● Uptime and
reliability are key observability benefits: Operational efficiency (43%) is the
most cited benefit by technology organizations, followed by improved uptime and
reliability at 40%. For telcos, benefits highlighted include improved system
uptime at 38%, followed by improved developer productivity at 32%.
● Training staff and tool consolidation key priorities: The data shows that to get the most out of their observability spend, close to half (49%) of technology respondents and 42% of telcos planned to train their staff to use these platforms. Additionally, 47% of technology respondents and 37% of telcos said that they planned to consolidate observability tools in the future.
BY:- Nirosha Gupta;)
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