Observability software plays a vital role in today’s businesses by providing deep insights into remedying complex cloud systems and applications to prevent downtime.
Understanding the return on investment (ROI) of observability software is crucial as it helps organizations justify the investment in today’s lean IT budget environment, which leads to reduced downtime and sustainable growth.
What is observability software?
Imagine you're the captain of a massive ship sailing through uncharted waters. To ensure smooth sailing, you want to closely monitor everything happening on the ship, from the engine room to the navigation systems. Well, observability software is like having a team of trusty assistants who help you monitor and understand every little detail of your ship's operations.
It collects data from cloud and on-premises systems and applications, analyzes them, and presents the findings in an easy-to-understand way. With observability software, you can quickly detect and fix problems, optimize how things work, and even predict potential issues before they become big headaches.
It's like having a superpower that keeps your ship sailing smoothly, making your journey safer, more efficient, and ultimately more successful.
Even though observability software is critical to a large hybrid infrastructure, it can be expensive. According to a honeycomb.io blog post on observability tool spending, 20-30% of infrastructure spending is on observability tools. This is due to several factors, not just limited to the software itself.
Firstly, hybrid infrastructure usually requires installing numerous cloud and on-premises agents. This quickly adds to the total cost depending on the system's size. Additionally, observability software often integrates with complex systems and applications, requiring specialized expertise and customization to ensure seamless integration and accurate data collection. The costs of providing comprehensive support, training, and customer service also contribute to the overall expense.
Moreover, as observability software is designed to handle large volumes of data and provide real-time insights, it requires robust infrastructure and scalability, which adds to the cost. Based on the above factors, the total cost can range from thousands to millions. Due to the high cost, the initial investment should be taken very seriously in today’s lean budget environment.
G2’s Grid® Report for Observability Solution Suites | Summer 2023 can provide in-depth insight into which observability software has the best ROI based on peer reviews on G2.
The ROI period for SaaS software is important as it helps organizations determine how long it takes to recoup their investment and realize the software's financial benefits. Understanding the ROI period allows businesses to assess the profitability and effectiveness of the SaaS solution and make informed decisions regarding resource allocation and future investments.
If you are looking for a solution with the shortest time for an investment to generate a return on investment, then you want to look at ROI period data on G2. Out of 35 observability tools with qualifying reviews on G2, here are the top five products with the quickest ROI period.
With Epsagon, software buyers can get their money’s worth in four months. Sematext Cloud, PRTG, FusionReactor APM, and Site24x7 also have a short ROI period compared to the average of 17 months.
User adoption for SaaS software is crucial as it determines the success and effectiveness of the software within an organization. When users embrace and effectively utilize the software, it maximizes the value derived from the SaaS solution, enhances productivity, and ensures a positive return on investment.
If you are looking for the solution with the highest adoption rate so the number of licenses you purchase is worth it, then you want to look at user adoption rate data on G2. Out of 35 observability tools with qualifying reviews on G2, here are the top five products with the highest adoption rate.
With Centreon, software buyers can ensure that around 84% of their license quantities are properly allocated. Veeam ONE, ManageEngine Applications Manager, LogicMonitor, and Coralogix also have higher user adoption percentages than the average of 60%. G2 reviewers say these products help attain maximum utilization without overpaying for licenses.
In conclusion, observability software is vital in modern businesses, helping organizations prevent downtime and achieve sustainable growth.
However, the cost of observability software can be significant due to various factors, making it crucial for businesses to carefully evaluate additional costs, such as the cost of training to learn about the platform and integration. With poor training policy, IT admin cannot properly implement and use the tool. This will affect user adoption because users don’t want to use the tool.
Businesses need to ensure that they are effectively utilizing their purchased licenses. Platforms like G2 can provide valuable data and peer reviews to help organizations make informed decisions on observability software that offers both a quick ROI period and high user adoption rates.
Businesses still need to do additional calculations on the considerations mentioned above to have a full picture of the total cost of the software.
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Edited by Shanti S Nair
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