State of Observability 2022 Report Reveals Organizations With Mature Observability Practices Significantly Reduce Costs While Increasing Innovation

Splunk Inc. (NASDAQ: SPLK), the data platform leader for security and observability, in collaboration with the Enterprise Strategy Group, today released the State of Observability 2022, an annual global research report that examines how observability is shaping the future of cutting-edge organizations. The report surveyed 1,250 observability practitioners, managers and experts worldwide, revealing that observability is already powering digital transformation, while highlighting its potential to create significant savings and attract the best talent to help power businesses to new heights.

The report reveals that the most sophisticated observability practitioners (leaders*) are able to cut downtime costs by 90%, from an estimated $23.8 million annually to just $2.5 million, compared to observability beginners. What’s more, leaders in observability are more innovative and more successful at achieving digital transformation outcomes and other initiatives:

• Observability leaders have launched 60% more products or revenue streams from AppDev teams in the last year compared to beginners.
• Observability leaders report a 69% better mean time to resolution for unplanned downtime or performance degradation thanks to investment in observability.
• 66% of leaders report that their visibility into application performance is excellent (compared to just 44% of beginners). Similarly, 64% of leaders report that visibility into their security posture is excellent (versus 42% of beginners).
• Twice as many leaders can detect problems associated with internally developed applications within minutes, resulting in an estimated 37% better MTTD.

“Our research confirms just how vital observability is for every business,” said Spiros Xanthos, SVP and General Manager, Observability, Splunk. “The most sophisticated observability practitioners have given themselves an edge in digital transformation while massively cutting costs associated with downtime and boosting their ability to out-innovate the competition. These observability leaders are more competitive, more resilient and more efficient as a result.”

Increased cloud complexity also highlights how imperative becoming an observability leader is for all enterprises. Organizations have been moving to the cloud for more than a decade and in more recent years, hybrid architectures and multicloud operations have complicated many organizations' cloud ecosystems. Seventy percent of respondents are using multiple cloud services, and the shift to multicloud has increased complexity: