What is Observability? Definition, Benefits, and Difference from Monitoring

what is observability

Observability has become a crucial concept in the world of modern software development and IT operations. As systems grow increasingly complex due to microservices, cloud infrastructure, and distributed architectures, traditional monitoring methods often fall short in providing deep insights. Observability, however, is designed to address this gap by enabling engineers to better understand system behaviour and internal states by examining outputs like logs, metrics, and traces.

This article delves into the origins of observability, its differences from monitoring, its core components, and the benefits it offers to development and operations teams.

Origins of Observability

Observability originates from control theory, where it refers to the ability to infer the internal state of a system solely through its external outputs. In the context of software, observability extends this principle to distributed systems. As these systems have become more intricate—comprising numerous microservices, containers, and interdependent applications—understanding their internal workings by manually tracking every component has become impractical.

Observability allows engineers to infer how different parts of a system are functioning by analysing logs, metrics, and traces, making it easier to diagnose and resolve issues in complex, dynamic environments.

Observability vs Monitoring

Though observability and monitoring are often mentioned together, they serve distinct purposes.

  • Monitoring: Involves tracking predefined metrics and setting up alerts when those metrics exceed certain thresholds. It answers specific, well-known questions like, “Is the server CPU usage too high?” or “Are response times within acceptable limits?” Monitoring is reactive in nature, useful for catching known issues but less effective in diagnosing new, unexpected problems.
  • Observability: Focuses on understanding the deeper, internal state of a system. Instead of merely collecting and reacting to predefined data points, observability empowers teams to ask more open-ended questions such as, “Why is this service behaving erratically?” or “What caused this unknown issue?” Although monitoring is more inert and concentrates on known hitches, observability on the other hand is energetic, intended to deliver understandings into both identified and unpredicted problems.

In this sense, monitoring is a tool or process used to gather data, whereas observability is a system’s inherent property that allows engineers to understand its inner workings more comprehensively.

The Three Pillars of Observability

To make a system observable, it is essential to collect data from multiple dimensions. Observability is often broken down into three main components, or “pillars”: logs, metrics, and traces.

  1. Logs
    Logs are time-stamped records that capture discrete events occurring in a system. Each log entry provides a snapshot of what was happening within a service or application at a specific point in time. Logs can contain error messages, status updates, user activity, and other important details.
    For example, if a user encounters an error when submitting a form, a log will capture the error message, along with contextual information like the user’s ID and the operation they were attempting. By analysing logs, engineers can piece together the sequence of events leading up to a problem.
    While logs provide highly detailed insights, they can be overwhelming due to the sheer volume of data generated in large systems, especially if analysed on their own without additional data types.
  2. Metrics
    Metrics represent aggregated, numerical data that describe system performance over time. Metrics are typically used to track overall health and performance trends, and they can be collected at different intervals. Common examples of metrics include CPU usage, memory consumption, request latency, and error rates.
    Metrics provide a high-level overview, helping teams quickly identify trends or anomalies. For instance, if the error rate for a service suddenly spikes, metrics can alert teams before users experience noticeable service degradation. However, metrics alone may lack the context needed to fully diagnose problems, such as understanding which part of the system caused an issue or why a performance degradation occurred.
  3. Traces
    Traces are detailed records that track the lifecycle of requests as they move through a system. In a microservices environment, a single request from a user might pass through multiple services before being fulfilled. Traces capture each step of this journey, noting how much time each service took and how they interacted with one another.
    Tracing is particularly useful for understanding how different services contribute to overall response time or for identifying where bottlenecks occur. For example, a trace might reveal that a request to a shopping cart service is delayed due to a bottleneck in the inventory service, allowing engineers to pinpoint the root cause of the issue.

Benefits of Observability

Investing in observability offers several critical advantages to both development and operations teams, making it an essential part of modern system management.

  • Faster Incident Response
    One of the most immediate benefits of observability is faster problem resolution. When something goes wrong in a system, observability tools allow engineers to quickly gather detailed information about what led to the issue. This speeds up the process of identifying root causes and implementing fixes.
    For instance, if a service experiences latency issues, observability tools can help teams trace the problem down to the exact point in the request lifecycle where the delay occurs. This reduces downtime and ensures a better user experience.
  • Proactive Problem Detection
    Observability enables teams to identify and address problems before they escalate into major outages. By continuously collecting and analysing logs, metrics, and traces, teams can spot early signs of issues, such as performance bottlenecks or unusual error patterns.
    This proactive approach helps prevent downtime, improves system reliability, and enhances the user experience.
  • Improved Collaboration
    Observability fosters collaboration between teams, particularly in larger organisations where different groups manage different parts of a system. By providing clear, actionable data about system behaviour, observability ensures that developers, operations, and business teams are all working with the same information.
    This shared understanding reduces miscommunication and accelerates troubleshooting efforts, allowing teams to resolve incidents more efficiently.
  • Better System Design
    Observability also plays a role in improving system design. By providing a clearer view of how a system operates under various conditions, teams can make informed decisions about architectural improvements and service dependencies. Continuous insights into system performance and behaviour help teams design more resilient systems, ensuring long-term reliability and scalability.
  • Building an Observable System
    Achieving observability requires more than just tools; it involves a combination of best practices and a cultural shift. Teams need to instrument their code to capture relevant data, automate the collection of logs, metrics, and traces, and establish clear Service Level Objectives (SLOs) and Service Level Indicators (SLIs).
    Platforms like Prometheus, Grafana, and Jaeger are commonly used to collect and analyse observability data. However, true observability also depends on fostering a culture of continuous improvement and data-driven decision-making.

Conclusion

In today’s complex software landscape, observability is critical for maintaining system reliability, performance, and user satisfaction. By focusing on the three pillars of observability—logs, metrics, and traces—teams can gain deep insights into system behaviour, respond quickly to incidents, and design better systems for the future.

Observability not only helps in resolving current issues but also empowers teams to build more resilient, reliable systems, ensuring success in an increasingly digital world.