Only 27% of Organizations Have Full-Stack Observability, Says Report

Over the last two years, organizations have been using fewer tools for observability of their data and systems, according to a new report from New Relic.

The number of observability tools used per organization has dropped 27% in the last two years, going from an average of six in 2023 to 4.4 in 2025, the survey said.

Nearly three in four survey respondents said they lack full-stack observability — meaning, they don’t have one dashboard or view providing visibility across infrastructure, applications and services, security monitoring, digital experience monitoring, and log management.

Tool sprawl, according to the report, has been a major reason why so many companies don’t have full-stack observability. When asked about their top challenges, 29% of survey participants cited too many monitoring tools or siloed data.

The survey of 1,700 IT and engineering teams around the world was conducted by New Relic with help from Enterprise Technology Research. More than 20 countries were represented; 21% of respondents work for companies with at least $1 billion in annual revenue.

More Observability Tool Consolidation Needed

The report reflected the impact a lack of full-stack observability can have on organizations. Forty percent of organizations without full-stack observability solutions are more likely to experience at least one high-business-impact outage per week, compared with 23% of organizations that have such solutions in place.

The report found that a “high-impact business outage” costs organizations a median of $2 million per hour. The costs are obviously going to be lower at smaller organizations or those with little digital interaction with customers.

Over the next two years, more than half of survey participants (52%) said they plan to consolidate their observability tools into a unified platform. Other findings about organizations’ two-year strategies:

• 48% plan on adding AIOps/machine learning capabilities to their observability tooling.
• One-third of organizations said full-stack observability will be a focus of their observability efforts over the next two years.