Dynatrace Observability
Dynatrace Observability
Research Objectives
Artificial intelligence (AI) is expected to be a game changer for IT operations. According to recent Enterprise Strategy Group research,
85% of organizations are actively using, planning to use, or considering artificial intelligence (including generative, causal, and
predictive) across many of their functional areas, including IT operations. In an era when IT operations teams are under tremendous
pressure to accelerate processes, enable digital transformation, and reduce the unit cost and environmental impact of compute,
artificial intelligence is seen as a key enabling technology.
To address these challenges, organizations are turning to AI tools that eliminate manual processes to move faster, improve efficiency,
promote productivity, and improve outcomes. Whether through generative AI (GenAI)-based tools, copilots, natural language querying,
or advanced usage of causal and predictive AI, IT operations teams have an ever-increasing set of tools available to help them achieve
their goals, improve stakeholder satisfaction, and optimize for their important metrics. Lastly, providers in these markets need to
understand how GenAI will impact their value proposition and what buyers prioritize when it comes to AI in IT operations.
To gain further insight into the current status and near future of AI in IT operations, TechTarget’s Enterprise Strategy Group surveyed
360 IT professionals at organizations in North America (US and Canada) involved with observability, ITSM, and AIOps technologies
and processes. This survey explored how AI is impacting the selection and use of IT operations tools, key stakeholders influencing
purchasing decisions, functional requirements, business and technology drivers, tool consolidation plans, and spending intentions.
Identify current and future use cases and drivers for Determinethevalueofarti…cialintelligenceandhowthat
generativearti…cialintelligenceinIToperations. valueisexpectedtobemeasured.
KEY FINDINGS
“Based on current
adoption levels,
TeamsSeeBene…tsofAutomation
andAIAdoption,butITOperations
AI Adoption Will Enable Operational
Acceleration,butChallengesLieAhead
IT and operations
Are Still Complex for Most
professionals are
widely aware
OD˝ OD——
of integrated AI
technologies
and capabilities
in their operating
HighValueandImpactofInitialAI
InvestmentsWillFuelaWaveofAdditional
OpsTeamsExpecttoSourceAI
Technology From a Range of Providers
environments.”
TechnologyAcquisition
Jon Brown | Senior Analyst
OD— ODˇ˛ ENTERPRISE STRATEGY GROUP
OverHalfReportAIIntegrationinProductionIT
Based on current adoption levels, IT and operations professionals are widely aware of integrated AI technologies and capabilities in their operating environments. Generative AI is
most widespread and has an early adoption lead due to the popularity of ChatGPT, Bard, and similar tools on the consumer side, as well as the proliferation of generative AI-enabled
user interfaces allowing for natural language querying. Generative AI is essenitally a mainstream concept, while causal and predictive AI maturity levels and understanding are likely
less evident. Vendors will focus on differentiating AI types and highlighting different use cases in line with what will be increasing buyer sophistication.
StatusofAItoolsortechnologiesintermsofintegrationwithIToperations.
AutomationmaturitywithinIToperations.
Perceptionoftimespentinvestigatingrootcasesofincidents.
71+29+T
“The pain of spending too much time on root causes and
incidents was much more pronounced in organizations with
We spend a reasonableamountof
time identifying root causes of incidents,
fewer than 1,000 employees, which were most likely to say
they’re spendingtoomuchtimeidentifyingroot (46%).”
causes 71% and new or additive observability tool
investments likelywouldnothelp
28+72+T
Organizations Report Reasonable
RootCauseInvestigationTimes We spend toomuchtimesolving root
Although 71% of organizations report they spend a reasonable amount of time finding
the root causes of incidents, all is not necessarily fine. Likely, this means that these IT
28% causes of incidents and shouldinvest
in better observability tools to help
operations teams feel that they’re doing as well as can be expected, and they’re potentially
not aware of breakthroughs being used by their peers that would make their metrics look
poor in comparison. The pain of spending too much time on root causes and incidents was
1+99+T
much more pronounced in organizations with fewer than 1,000 employees, which were
most likely to say they’re spending too much time identifying root causes (46%). In larger
organizations, four out of five were satisfied with the time spent with root cause analysis.
Still, less time is better, so anything that shortens this time is still beneficial and valuable.
We spend toomuchtimesolving root
1% causes of incidents, but investing in
observability tools likelywouldnothelp
IT Operations The widely held perception that most functions related to metrics, events, logs, and traces (MELT) are difficult
remains true. Log data collection and correlation as well as tracking application and infrastructure costs are most
Management Remains difficult. Progress has been made on instrumentation, but many organizations continue to struggle with complexity
BurdensomeandComplex in IT operations. However, many of these tasks are ripe for efficiency improvements through AI.
LevelofresourceburdenandoverallcomplexityforeachIToperation.
Instrumentingservicestocollectdistributedtracedata
23% 19% 29% 29%
Isolatingtheapplicationtotheunderlyinginfrastructure
21% 26% 24% 29%
Aligningcustomerperformanceexpectationswithinfrastructure
24% 22% 26% 28%
Budgeting,tracking,andoptimizingIToperationscosts
23% 25% 25% 28%
Examiningalerts/logs/tracestoidentifyvaluableinformation
23% 22% 29% 27%
Automating incident detection, triage, and remediation 22% 21% 30% 26%
Trackingapplicationandinfrastructurecoststooptimizeresources
26% 23% 25% 26%
AreasservedbyIToperationsmostlikelytobene…tfromgenerativeAI.
IT operations 72%
Cybersecurity 47%
Sales 8%
Legal 7%
OrganizationsUsingAutomationinITOperationsSeeWidespread,Signi…cantImprovements
Organizations are commonly seeing positive benefits from the integration of automation into IT operations processes. Performance management, notoriously a complex task, tops
the list of significantly improved processes. Automating release management, part of the general trend toward operational acceleration, is also enjoying automation-related benefits
within many organizations. These early successes will fuel heightened growth and adoption through 2024 and 2025.
ImpactofintegratingautomationintoIToperationsprocesses.
ConcernsorchallengeswithintegratingAIintoIToperations.
Overdependence on AI 26%
Mostin‰uentialfactorsdrivingneedtoaccelerateIToperations.
HowmuchfasterIToperationsteamsneedtoperformcomparedwiththreeyearsago.
ExpectedpercentageofimprovementtoIToperationsmetrics/KPIsfromgenerativeAIintegrationin24months.
34%
ct 1% to 5% 6% to 10% 11% to 20% 21% to 30% 31% to 50% 51% to 75% 76% or more
e
SustainabilityHasArrivedforITManagementTools
For 90% of surveyed organizations, sustainability frequently or always factors into the purchase of IT management tools.
Increasingly, organizations place a premium on sustainable solutions and approaches to obtain environmental, social,
and economic benefits. These technologies and processes also tie into corporate social responsibility (CSR) goals, which
are growing in importance as organizations look to vendors and service providers that demonstrate a commitment to
environmental responsibility.
“Increasingly,
Howoftensustainability(e.g.,energyeciency,e-wastemanagement,etc.) organizations place
factorsintothepurchaseofITmanagementtools.
a premium on
StepstakentobetterpreparefortheintegrationofAI(includinggenerativeAI)intoIToperations.
ResultsofGenerativeAIInvestmentsinITOperationsAreOverwhelminglyPositive
Although production usage of generative AI in IT operations is still relatively low, it is ramping quickly behind a wave of positive initial results. Across the board of typical operations
use cases, organizations are seeing at least some improvement due to the integration of GenAI, if not significant improvement. However, the jury remains out on whether these
overwhelmingly positive returns will continue as adoption grows.
ImpactofgenerativeAIonIToperationsusecases.
IT change root cause correlation (e.g., outage caused by change) (N=68) 51% 43% 6%
14+44+402J
Generative AI PremiumpercentageorganizationsarewillingtopayforIToperationstools,platforms,
orservicesthatusegenerativeAI.
HasValueAboveand
Beyond Table Stakes
“Nearly all (99%)
Nearly all (99%) organizations are willing 14%
to pay a premium for IT operations tools, to
6% 10% organizations are
platforms, and services that use generative
AI, reflecting the perceived value of the
integration of this technology. However, while
willing to pay a
the perception of value is strong, organizations
will still perform significant levels of due
44% premiumfor IT
to
1% 20%
diligence prior to purchases, in part because
these technologies are still young. Those operations tools,
platforms, and services
organizations with more AI usage maturity
likely will have an easier time understanding
40%
the value of GenAI-enabled offerings.
or
21% more
that use generative AI.”
Bene…tsexpectedfromintegratingAIintoIToperations.
Respondents Expect AI to
Cost reduction 31%
Help Them Do More With less
Streamlined and improved existing processes 29%
Organizations are counting on AI for increased
productivity, cost savings, and a range of
improvements enabled through automation. Knowledge sharing and transfer (e.g., across IT teams) 29%
While this could be considered “digital
transformation 2.0,” organizations generally Predictive maintenance 28%
retain the mindset of preferring to do what they
already know how to do but faster and with Improved customer and user support 27%
less labor. AI is a new work medium or lever,
like transitioning from wood to steel: It’s the
same basic function but much more extensible. Continuous learning 27%
MetricsusedtomeasurethevalueandeffectivenessofgenerativeAIinIToperations.
MostAgreeThatGenAI-enabledSolutionsAreMoreLikelytoMake
theShortListforPurchaseConsideration
In most cases, generative AI-enabled solutions have a leg up on solutions that don’t offer generative AI capabilities when it comes to organizations
making a short list. However, 12% of organizations don’t share this view and would presumably prefer to evaluate solutions that do not include
generative AI. As generative AI capabilities mature over time, this percentage of organizations will likely decline.
43+8+3661J
LikelihoodofconsideringvendororserviceproviderthatintegratesgenerativeAIcapabilities
intoproductsorservices.
8%
Neutral
AI-enabledsolutionshavea
36%
legup on solutions that don’t
offer generative AI capabilities
Somewhatmorelikely
6%
Muchlesslikely
making a short list.”
SourcesforacquiringIToperationstools,platforms,andservicesthatleveragegenerativeAI.
Primarysourceinmonths
42 Willacquirefrominthenextmonths
42 Alreadyacquiredfrom
(oneresponseaccepted) (multipleresponsesaccepted) (multipleresponsesaccepted)
24%
IT infrastructure vendors 54%
47%
GenAIPurchasesWillSpan
16%
MultipleSources New IT management tool providers 43%
43%
Buyers more often expect to purchase GenAI-
enabled IT operations tools, platforms, and services 15%
from IT infrastructure vendors and cloud service Existing IT management tool providers 42%
providers than from pure-play IT companies or 42%
third-party delivery or integration firms. However,
23%
all of these sources will play a part in delivering
Cloud service providers 40%
these capabilities. The broad scope of market
41%
competition will benefit organizations looking to
boost the efficiency and effectiveness of their IT 9%
operations across a wide range of use cases. Pure-play AI companies or startups 25%
28%
7%
Third-party service delivery or integration firms 29%
27%
6%
Open source projects 23%
27%
1%
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Generative AI in IT Operations 26
Groupsin‰uencingbuyingdecisionsandholdingbudgetforAItoolsrelatedtoIToperations.
36%
IT operations 33%
Operations-centric AI 60%
2%
Line-of-business leaders 3%
16%
4%
Finance 4%
14%
AB O U T
Dynatrace (NYSE: DT) exists to make the world’s software work perfectly. Our unified software intelligence platform
combines broad and deep observability and continuous runtime application security with the most advanced AIOps
to provide answers and intelligent automation from data at enormous scale. This enables innovators to modernize
and automate cloud operations, deliver software faster and more securely, and ensure flawless digital experiences.
That is why the world’s largest organizations trust the Dynatrace® platform to accelerate digital transformation.
LEARN MORE
To gather data for this report, TechTarget’s Enterprise Strategy Group conducted a comprehensive online survey of IT operations professionals from private- and public-sector
organizations in North America between November 28, 2023 and December 18, 2023. To qualify for this survey, respondents were required to be involved with observability,
ITSM, and AIOps technologies and processes. All respondents were provided an incentive to complete the survey in the form of cash awards and/or cash equivalents.
After filtering out unqualified respondents, removing duplicate responses, and screening the remaining completed responses (on a number of criteria) for data integrity, we were
left with a final total sample of 360 IT operations professionals.
Respondents by day- to- day responsibilities. Respondents by number of employees. Respondents by industr y.
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