TLDR: The Splunk State of Observability 2025 report, released by Cisco, underscores observability’s pivotal role as a business catalyst. Based on a global survey of 1,855 ITOps and engineering professionals, the report reveals that observability significantly boosts employee productivity for 74% of respondents and drives revenue growth for 65%. It also plays a crucial part in shaping product roadmaps for 64% of organizations. The study highlights how observability insights are guiding strategic business decisions, particularly in the context of AI adoption, customer experience, and product innovation, while also addressing the complexities of managing AI workloads.
SAN JOSE, Calif. – October 21, 2025 – Cisco today announced the release of the ‘Splunk State of Observability 2025: The Rise of a Business Catalyst’ report, marking its fifth annual deep dive into the evolving landscape of observability. This comprehensive analysis highlights the critical role observability plays in delivering tangible business value, extending beyond traditional IT functions to become a boardroom priority.
The report, based on a global survey of 1,855 ITOps and engineering professionals, reveals that observability insights are now instrumental in guiding key business decisions across various domains, including customer experience, product roadmap forecasting, and brand perception.
Key findings from the report demonstrate the profound impact of observability on organizational performance:
Employee Productivity: A significant 74% of respondents reported that observability positively impacts their employee productivity.
Revenue Growth: Nearly two-thirds (65%) of those surveyed indicated that observability is positively influencing their revenue.
Product Roadmaps: 64% of organizations found that their observability practices positively impact their product roadmaps, enabling more informed and strategic development.
The study also delves into the opportunities and challenges presented by the AI era. While AI is assisting ITOps and engineering teams in accelerating incident response, it also introduces complexity in managing new types of workloads. Nearly half of the surveyed professionals stated that monitoring AI workloads has made their jobs more challenging, highlighting a need for enhanced training and expertise in this area.
Observability leaders are distinguishing themselves by embracing innovative practices and frameworks such as OpenTelemetry, code profiling, and observability-as-code. These approaches enable organizations to gain deeper insights and maintain control over their increasingly complex digital environments.
Shannon Kalvar, Research Director at IDC, emphasized the strategic importance of observability, stating, “For a modern business, built on digital experiences, observability is not just about error resolution; it is a foundational discipline required for making business-shaping decisions at speed and scale.”
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As organizations continue to adopt new waves of AI innovation, observability is emerging as a business-critical function, fostering smarter decisions, faster innovation, and stronger resilience. The 2025 Splunk State of Observability report offers actionable insights for organizations aiming to lead in an increasingly data-driven and AI-powered world.
