In our blog series, we’ve debunked the following observability myths so far:

• Part 1: You can skip monitoring and rely solely on logs
• Part 2: Observability is built exclusively for SREs
• Part 3: Observability is only relevant and beneficial for large-scale systems or complex architectures
• Part 4: Observability is always expensive
• Part 5: You can create an observable system without observability-driven automation
• Part 6: Observability is about one part of your stack

In this article, we will focus on the misconception that “observability is always expensive.” We’ll highlight the significance of cost-effective observability solutions. Additionally, We will also explore IBM Instana as a vendor reference and extract valuable insights from a customer who experienced a substantial expenditure of $65 million and their subsequent transition towards a more cost-effective observability journey.

Why is this a myth?

It’s a myth that “observability is always expensive” because there are various cost-effective options available for implementing observability in modern systems.

Drawing Insights from Real-Life Cases, a leading cryptocurrency exchange faced the challenge of optimizing observability costs while maintaining the necessary insights into its systems. In a blog post by Gergely Orosz, he highlighted how this company racked up a bill of $65 million from an observability vendor in 2022 but then switched from using a costly tool to adopting a more cost-effective observability solution. The post emphasizes the need for businesses to evaluate their observability tooling carefully, focusing on the value they provide rather than the price alone. It also highlights the importance of a thoughtful approach to observability to prevent spiraling costs.

Observability tool vendors understand the importance of accommodating businesses with varying budgets. Not all tools follow the consumption-based pricing model, and there are many different options for customers.

IBM Instana as an example, this platform offers adaptable pricing alternatives, including structured subscription plans. These plans empower enterprises to anticipate costs according to their chosen package, simplifying budgeting for observability endeavors and steering clear of unexpected charges.

Fact: Observability does not have to break the bank because there are various pricing models from which to choose

Vendors like Instana offer transparent subscription plans, while open-source tools and cloud provider offerings (e.g., Prometheus and Grafana) provide additional avenues for cost savings. They may require some effort to set up and manage, but they can be a cost-effective option to fit your budget.

No matter what you choose, just make sure you understand the total cost of ownership, including storage, quarterly charges, ingestion, and developer involvement (i.e., how much time and resources are developers spending).

The following are some options to look for when planning your observability solution:

• Fixed subscription plans: Observability platforms and tools offer fixed subscription plans that allow businesses to predict their costs upfront. These plans typically offer different tiers or packages tailored to the organization’s needs. Businesses can choose the most suitable plan based on factors like the volume of data they need to monitor, the number of users, and the features required. Check out the IBM Instana pricing model.
• Democratized observability: Democratization of observability is a critical aspect for modern organizations, enabling their employees to gain comprehensive insights into their systems and operations. By selecting a vendor that offers free access for additional users, companies can foster collaboration, knowledge sharing, and inclusivity without incurring extra costs.
• Open-source solutions: Open-source tools like Prometheus, Grafana, and Elasticsearch provide robust observability capabilities without any direct license costs. They do require a lot of effort and advanced technical skillset to set up and manage.
• Scalable pricing models: Cloud-based observability solutions often offer scalable pricing models. This means businesses can start with a smaller budget and expand their observability infrastructure as their needs grow. By paying for resources as they use them, organizations can optimize costs while ensuring they have enough coverage to meet their requirements.
• Customization and flexibility: Some observability platforms allow customization based on the organization’s specific needs. Businesses can choose to focus on critical areas or services, reducing unnecessary costs.

IBM’s approach to enterprise observability

IBM’s observability solution, IBM Instana, is purpose-built for cloud-native and designed to automatically and continuously provides high-fidelity data—one-second granularity and end-to-end traces—with the context of logical and physical dependencies across mobile, web, applications and infrastructure. Our customers have been able to achieve tangible results using real-time observability.

Jorge Tome Hernando, the Director of IT Architecture, Operations, Security and Workplace PRISA Tecnologia, had the following to say about Instana: “Instana provides a complete vision of how our services are running, helping us achieve our goals of performance, reliability and cost optimization.”

Learn more about PRISA Tecnologia’s journey with Instana.

If you want to enhance your observability practices with full-stack visibility and the ability to monitor your cloud dependencies in real-time, we invite you to request a quote.

What’s next

Keep an eye out for our next blog, where we debunk another common myth about observability: “You can achieve SRE and DevOps productivity.” Learn about the benefits of automation in observability and see how Instana customers are benefiting from automation and high-fidelity context.

• Read: “Debunking observability myths – Part 1: Why you can’t skip monitoring and rely only on logs“
• Read: “Debunking observability myths – Part 2: Why observability is important for everyone, not just SREs”
• Read: “Debunking observability myths – Part 3: Why observability works in every environment, not just large-scale systems”
• Read the ebook: “Boost observability to streamline application modernization”