The Observability Digest #0034: Cost Transparency Evolution

Cost Transparency Reshapes Observability Landscape πŸ’°πŸ”

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AI Upgrades and Security Milestones

ObservCrew,πŸ™Œ This week, we're diving into cost allocation standardisation, let's explore how the industry is tackling this challenge and what it means for our observability practices.

Let's dive in πŸ‘‰

πŸš€ OpenCost reaches CNCF incubation status
πŸ’» New OpenSearch UI and Astro Observe launch
πŸ“Š Strong Q3 results for Dynatrace and Datadog
πŸ”’ Falco introduces game-changing response engine

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A Week in Observability
and Tech Resilience

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THIS WEEKS SPOTLIGHT - OpenCost Reaches CNCF Incubation

The Cloud Native Computing Foundation (CNCF) has promoted OpenCost to incubation status, marking a significant milestone in standardising cost allocation for cloud-native environments. This move underscores the growing importance of transparent and accurate cost management in our tooling.

The project's incubation status is likely to accelerate its adoption and development, potentially leading to more integrations with other observability tools and platforms. This could result in more comprehensive and accurate cost insights for DevOps and FinOps teams, enabling better decision-making and resource optimisation.

For us in the Observability field, this development signals a shift towards more standardised and transparent cost management practices. We can expect to see increased focus on cost allocation features in observability platforms, as well as better integration between observability and FinOps tools.

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WHAT TO WATCH

Amazon OpenSearch Service has launched a new UI, enhancing the user experience for search and analytics. This update brings improved performance, customization options, and streamlined workflows, potentially impacting how we interact with and visualize observability data. Explore the new OpenSearch UI (7 mins)

Astronomer has now released their product Astro Observe in Public Preview, as we reviewed a few weeks back Astro Observe has some interesting data observability capabilities for users on Astro, OSS Airflow, Amazon Managed Workflows for Apache Airflow (MWAA), and Google Cloud Composer (GCC.. Discover Astro Observe (5 mins)

MARKET NEWS

Dynatrace Reports Strong Q2 Results
Dynatrace's Q2 fiscal 2025 results show impressive growth, with Annual Recurring Revenue reaching $1.617 billion, up 20% year-over-year. Total revenue hit $418 million, a 19% increase, highlighting the growing demand for cost-effective observability solutions. Read the full report (5 mins)

Datadog Exceeds Q3 Expectations
Q3 revenue soared to $690M (26% YoY) with 3,490 customers generating $100K+ ARR, highlighting the market's shift towards integrated observability platforms that enable better cost management. Explore Datadog's performance (4 mins)

These results reflect strong market growth suggesting we need tools like OpenCost to help standardis, manage and reduce some of this spiralling cloud costs.

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LATEST PRODUCT UPDATES

Grafana Labs has rolled out major updates to their cloud-native monitoring stack, introducing significant improvements to OpenTelemetry integration and Kubernetes observability. The release includes enhanced debugging capabilities in Grafana Alloy 1.3 and new cost-monitoring features for Kubernetes infrastructure. These updates strengthen their position in cloud-native observability while supporting both OpenTelemetry and Prometheus users. Explore Grafana's latest updates (6 mins)

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SECURITY AWARENESS IN OBSERVABILITY

Falco, the cloud-native runtime security project, has introduced a new response engine, potentially changing the game for open-source cloud-native security. This development could lead to more proactive and automated security responses in observability workflows. Learn about Falco's new response engine (8 mins)

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LEVEL UP

The Kubernetes 1.32 release outlines critical changes to Dynamic Resource Allocation and Windows node management, providing essential updates for cluster operators. Explore Kubernetes changes (8 mins)

Grafana's new GitHub integration enables teams to visualize repository metrics and development workflows directly in their observability dashboards. Learn GitHub visualization (6 mins)

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COMMUNITY-DRIVEN ARTICLES
CodeCraft: Elevate Your Observability Skills

In this section, we've curated expert coding tips and insights to boost your observability prowess:

  • Middleware.io has published a comprehensive guide on using kubectl logs tail for efficient log retrieval in Kubernetes. This resource could be valuable for troubleshooting and monitoring Kubernetes applications. Master kubectl logs tail (8 mins)

  • Adevinta Tech Blog shares insights on how Karpenter has redefined their Kubernetes operations. This real-world experience could provide valuable lessons for teams looking to optimize their Kubernetes cluster management. Explore the Karpenter effect (10 mins)

SUCCESS STORIES

Forbes Technology Council discusses the adoption of a "no assumptions" IT architecture for modern observability. This approach could help organizations build more resilient and adaptable observability strategies. Read about no-assumptions observability (6 mins)

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EXPERT VOICES

Microservices Design Patterns
Juliano Souza, shares practical insights on implementing microservices architecture, focusing on scalable design patterns for distributed systems. His expertise in cloud-native applications provides valuable guidance for teams building resilient services. Read the analysis (8 mins)

AI and Application Security
Dhiraj Goklani explores the evolving landscape of application security in the age of AI adoption. His analysis covers critical considerations for maintaining robust security measures while leveraging AI capabilities in modern applications. Explore insights (6 mins)

REDEFINING TECH LEADERSHIP

RedMonk's podcast features Tom Johnson discussing "Observability 2.0" and the evolution of developer tools and debugging practices. This conversation offers insights into the future of observability and its impact on software development. Listen to the Observability 2.0 discussion (45 mins)

The Telemetry Show podcast explores the "Universal Language of Telemetry," delving into the standardization of observability data across different platforms and tools. This episode is crucial for understanding the future of interoperability in observability. Discover the universal language of telemetry (40 mins)

MEME OF THE WEEK
A meme showing two people sitting on a ledge. One person in a jacket asks 'How did you end up in poverty? Gamble? drugs?' The other person, appearing disheveled, responds 'I left an ec2 instance on.' The meme humorously highlights the expensive consequences of forgetting to shut down cloud computing resources

Tweet me your favorite memes and get an honorary mention in the newsletter.

WHAT’S ON MY MIND

This week's developments highlight two critical trends: the standardisation of cost management through OpenCost's CNCF incubation and the growing focus on security in AI-driven environments. The strong market performance of observability vendors, coupled with expert insights on microservices and AI security, demonstrates how the industry is maturing beyond basic monitoring to tackle complex challenges.

What strategies are you implementing to balance cost optimisation with robust security in your observability stack? Have a story about an unexpected cloud bill or a creative cost optimisation solution? Share it with our community!

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Remember to check those EC2 instances! πŸ˜‰Keep observing!

Allan

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