Market Description
Given the high-velocity DevOps-induced explosion in ITOps data growth, enterprises are struggling with legacy observability tools; cost overruns; and overworked ITOps, support, and system reliability engineering (SRE) teams. Combined with IT budget cutbacks and the necessity to deploy newer innovative technologies such as generative artificial intelligence (GenAI) to the field faster than the competition, this is placing a lot of pressure on ITOps teams.
The time has come for IT leaders to reimagine their IT and make it more efficient. To make systems efficient, enterprises need full-stack observability 24/7. But to get visibility into systems, an enterprise needs to be able to observe its IT systems 24/7 and get proactive notifications and resolution, regardless of the location. Comprehensive observability, across the full stack, was more of a myth and vendor fluff than a possibility—until now. Given recent advancements in GenAI, AI, and ML along with cloud-native monitoring, logging, and tracing solutions, it has become more of a reality.
Vendors in this space come from various lineages, including monitoring, logs, traces, events, or even incident management systems. Constellation expects this market to grow from approximately $2.5 billion to roughly $5 billion by 2030, although this number could be affected by a lot of factors, including mergers and acquisitions (M&A) and pricing capabilities of bigger vendors, adoption of open source tools such as OpenTelemetry (OTel), an enterprise’s need to upgrade from legacy to modern observability tools, and an enterprise’s appetite to observe its critical applications and willingness to spend money on such tools.
