New Relic Launches Industry’s Most Comprehensive Global Research on Observability

Rhea-AI Summary

New Relic (NYSE: NEWR) released its 2021 Observability Forecast revealing a disconnect between the critical need for observability and the current maturity of practices. Key findings include that while 90% of software engineers value observability, only 26% report mature practices. Despite this, 81% of executives plan to increase their observability budgets next year, with 20% expecting substantial hikes. The study indicates that consolidating tools into a unified platform is vital for progress. Additionally, there's a noted gap in strategy for implementing observability in organizations, affecting operational efficiency and customer experience.

Positive

• 81% of C-Suite executives plan to increase observability budgets in the coming year.
• 90% of respondents deem observability as critical to business success.
• Significant potential for growth in observability practices, with 74% indicating room for improvement.

Negative

• Only 26% of organizations have mature observability practices.
• 72% of respondents struggle with using multiple tools to monitor systems, leading to inefficiencies.
• 50% of organizations are still in the implementation phase of observability.

Survey reveals gap between mission-critical importance of full-stack observability to business success and the maturity of observability practices across organizations, uncovering 5 key insights to cross the chasm to achieve modern observability

SAN FRANCISCO--(BUSINESS WIRE)-- New Relic, Inc. (NYSE: NEWR), the observability company, released the findings of its 2021 Observability Forecast. The survey of nearly 1,300 software engineers, developers and IT leaders uncovered that while 90% of respondents believe observability is important and strategic to their business—and 94% believe it to be strategic to their role—just 26% noted mature observability practices within their business. Recognizing the importance of closing that gap, 81% of C-Suite executives expect to increase their observability budget in the coming year with 20% expecting budgets to increase significantly.

Importance of Observability (Graphic: Business Wire)

“IT teams are under more pressure than ever to ship new features faster, minimize downtime and resolve issues before they ever impact customers,” noted Buddy Brewer, GVP & GM, New Relic. “With the accelerated shift to digital resulting from the COVID-19 pandemic, the roles of software engineers and developers have become more critical today, as has empowering them with a data-driven approach to observability so they can plan, build, deploy and run the great software that delivers great digital experiences for their customers, employees and partners.”

During the pandemic, most organizations accelerated their digital transformation initiatives by as much as three or four years*. This phenomenon has condensed software development cycles and burdened data pipelines, making both increasingly complex for engineers and developers with multiple stages of telemetry ingest, processing and compounded interdependencies between various systems of record, applications, infrastructure and networks.

Yet despite the promises and because digital experiences are built on thousands of microservices, today’s monitoring tools often require engineers to spend an unreasonable amount of time stitching together siloed data and switching context between a patchwork of insufficient analysis tools for different parts of the tech stack—only to discover blindspots because it’s too cumbersome and too expensive to instrument the full estate. And even then, engineers get stuck at what is happening, instead of being able to focus on why it’s happening. In fact, 72% of our global survey respondents noted having to toggle between at least two and 13% between ten different tools to monitor the health of their systems.

This all comes at significant cost to businesses—in shipping delays, slow responses to outages, poor customer experiences and time wasted that engineers could have spent on the higher priority, business-impacting and creative coding they love.

Consolidating tools into a single, unified observability platform is among the research report’s five key insights for charting an organization’s path to achieving modern observability. Adopting a data-driven approach for end-to-end observability, expanding observability across the entire software ecosystem, modernizing the IT budget for full-stack observability and upleveling the value of observability to further engage the C-Suite round out the list.

“The art and science of planning, building, deploying and operating great software has changed forever,” noted Brewer. “Modern observability—taking a data-driven approach by pairing a unified data platform for all telemetry with full-stack analysis tools wrapped in a consumption-based pricing model that makes all data accessible to all engineers—positions IT teams to improve uptime and reliability, drive operational efficiency and deliver exceptional customer experiences that fuel innovation and growth.”

Key findings from the 2021 Observability Forecast include:

Observability is mission critical

• 90% of respondents believe observability is important and strategic to their business
• 94% believe observability is important to their role
• 81% of C-Suite executives expect to increase their observability budget in the next year with 20% expecting budgets to increase significantly

Observability delivers clear, positive business impact

• 91% of IT decision makers (ITDMs) see observability as critical at every stage of the software lifecycle with especially high importance in planning and operations
• 42% believe observability helps support their digital transformation with 23% noting it helps deliver better digital experiences for end users
• 27% cite faster deployment with observability
• 25% believe observability helps the organization be more cost effective

Massive opportunity to expand and mature observability practices

• Survey respondents confirmed that outages are on the rise, and that monitoring is fragmented
• Unsurprisingly, 72% noted having to toggle between at least two and 13% between ten different tools to monitor the health or their systems
• 23% of respondents said that they cannot gain end-to-end observability at all
• 74% of respondents note room to grow their observability practice with only 26% claiming a mature observability practice in their business
• Additionally, opportunity exists to increase awareness of observability and its benefits in New Zealand and Japan; More than 60% of respondents from New Zealand said they only were somewhat familiar or not familiar with observability while the number was even greater in Japan—Interestingly those very familiar with observability or who self-identified as experts came from Indonesia, India and Australia

Organizations lack a strategy or roadmap for implementation

• Only 50% of respondents note their organizations are in the process of implementing observability
• Lack of resources (38%), skills (29%) understanding of the benefits (27%) and strategy (26%) are top barriers to success
• This could explain why 60% of respondents still monitor telemetry data at the application level, leaving massive amounts of valuable telemetry data unmonitored, thus foregoing an opportunity to understand their environment more comprehensively.

Observability for Kubernetes and containers expected to grow rapidly

• While the majority of IT decision makers (88%) are exploring Kubernetes and containers at some level right now, 25% are conducting research, 25% are evaluating, 29% are in development and just 10% are in production
• There is hope amongst IT decision makers that this will change as 40% expect to be in production within three years
• This is critical because achieving true observability hinges on deploying solutions across all data that will automatically collect and correlate observability data from any and all available sources

IT leaders, software engineers and developers may access the full 2021 Observability Forecast here. More information on how New Relic empowers engineers with a data-driven approach to full stack observability, please visit newrelic.com.

Research methodology:

On behalf of New Relic, CITE Research (www.citeresearch.com) conducted an online survey among nearly 1,300 software engineers, developers, IT leaders and executives across the globe in May-June 2021. This research was conducted in Australia, Canada, France, Germany, Hong Kong, India, Indonesia, Ireland, Japan, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the US and the UK. Respondents were screened to be employed full-time in Software Development / IT with a designated title. Company size ranged from less than 50 to more than 10,000 employees from a variety of industries.

Additional Resources

• Get the 2021 Observability Forecast for free
• Learn about data-driven engineering
• Review latest New Relic updates at Nerdlog

*Source: According to a McKinsey Global Survey of executives, their companies have accelerated the digitization of their customer and supply-chain interactions and of their internal operations by three to four years.

About New Relic

The world’s best engineering teams rely on New Relic to visualize, analyze and troubleshoot their software. New Relic One is the most powerful cloud-based observability platform built to help organizations create more perfect software. Learn why developers trust New Relic for improved uptime and performance, greater scale and efficiency, and accelerated time to market at newrelic.com.

Forward-Looking Statements

This press release contains “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding New Relic’s 2021 Observability Forecast report and its findings and recommendations, including the respondents’ expectations around increased observability budgets and anticipated growth in observability for Kubernetes and containers. The achievement or success of the matters covered by such forward-looking statements are based on New Relic’s current assumptions, expectations, and beliefs and are subject to substantial risks, uncertainties, assumptions, and changes in circumstances that may cause New Relic’s actual results, performance, or achievements to differ materially from those expressed or implied in any forward-looking statement. Further information on factors that could affect New Relic’s financial and other results and the forward-looking statements in this press release is included in the filings New Relic makes with the SEC from time to time, including in New Relic’s most recent Form 10-Q, particularly under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Copies of these documents may be obtained by visiting New Relic’s Investor Relations website at http://ir.newrelic.com or the SEC's website at www.sec.gov. New Relic assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210914005487/en/

Media Contact

New Relic, Inc.

PR@newrelic.com

Investor Contact

Peter Goldmacher

New Relic, Inc.

503-336-9280

IR@newrelic.com

Source: New Relic Corporate Communications

FAQ

What are the key findings of New Relic's 2021 Observability Forecast?

The key findings include that 90% of respondents see observability as important, only 26% report mature practices, and 81% of executives expect to increase their budgets.

How many companies plan to increase their observability budgets according to New Relic?

81% of C-Suite executives plan to increase their observability budgets in the upcoming year.

What challenges do organizations face in adopting observability?

Challenges include lack of resources, skills, and a clear strategy, with only 50% of organizations actively implementing observability.

What percentage of respondents believe observability is critical to their roles?

94% of respondents believe observability is strategic to their roles.

Is there a noted gap in observability practices among organizations?

Yes, the survey found that only 26% of organizations have mature observability practices, indicating significant room for improvement.