Quantifying the value of AI-powered observability

Organizations saw a 243% ROI and $1.2 million in savings over three years

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In today’s complex and distributed IT environments, traditional monitoring falls short. Legacy tools often provide limited visibility across an organization’s tech stack and often at a high cost, resulting in selective monitoring. Many companies are therefore realizing the need for true, affordable end-to-end observability, which eliminates blind spots and improves visibility across their ecosystem. In particular, organizations are seeking tools that leverage AI for drawing insights from the data and connecting the dots — helping teams collaborate, innovate, and solve problems faster.

Quantifying the benefits, costs, and risks

So, how do customers and leading industry analysts think about the value of full-stack AI-powered observability? What are the types of benefits that site reliability engineers, developers, lines of business — and ultimately customers — get from these tools? And how can buyers of observability tools show the ROI they receive from their investments?

To better understand the benefits, costs, and risks associated with this investment, Elastic® commissioned Forrester to provide a business value analysis to understand the financial impact of an investment into Elastic Observability. Forrester Consulting interviewed seven representatives from five organizations with experience using Elastic's own AI-powered observability solution. For this study, Forrester aggregated the interviewees' experiences and combined the results into a single composite organization — an online services organization with 10 million customers and revenue of $1 billion per year.

Key study results

From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations who have invested in Elastic Observability. Many vital benefits emerged, such as:

  • 243% ROI from adopting AI-powered observability
  • 85% less time spent monitoring and resolving incidents 
  • 90% increase in data analyst efficiency
  • $2 million additional profit over two years from increased customer retention
  • $1.2 million in savings over three years from infrastructure optimization
  • Improved employee collaboration from unified data access
  • Increased customer retention from improved customer experience

The study has shown that deploying a unified full-stack observability platform can help organizations obtain greater visibility across the ecosystem, while reducing costs and driving efficiencies. Interested in learning more? Read the study report.

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