The deep observability market grew 60 percent in 2022 and continues to expand as organisations increasingly embrace hybrid cloud infrastructure, with a forecast CAGR of 50 percent and projected revenue of nearly $2B in 2027, according to the report.
Today, 90 percent of organisations operate in a hybrid and multi-cloud environment, and this shift has created new challenges around security, delivering consistent digital experiences, and operational overhead.
Alan Weckel, co-founder and analyst, 650 Group, said: “Deep observability remains a high-growth segment. Gigamon continues to both lead and innovate in this critical segment with unique, value-added capabilities like Precryption™ technology and Application Metadata Intelligence, helping organisations secure their hybrid cloud infrastructure.”
The Gigamon Deep Observability Pipeline delivers network-derived intelligence efficiently to cloud, security and observability tools, helping customers to eliminate security blind spots and better secure their hybrid cloud infrastructure.
More than 4,000 customers worldwide have shifted to a proactive security posture with Gigamon, extending beyond current observability approaches that rely exclusively on metrics, events, logs, and traces (MELT).
“Despite macroeconomic headwinds, deep observability remains a high-growth segment as organisations focus on managing the complexity of their multi-cloud infrastructure amid today’s constantly changing threat landscape,” said Alan Weckel, founder and technology analyst at 650 Group.
“We believe deep observability is not a ‘nice to have’ but is now a critical requirement for all enterprise operations teams, in order to deliver the performance and security today’s digital infrastructure requires.
“Gigamon continues to both lead and innovate in this critical segment with unique, value-added capabilities like Precryption™ technology and Application Metadata Intelligence, helping organisations secure their hybrid cloud infrastructure.”
The deep observability market is an emerging segment within the observability market and includes probes and agents sold as standalone systems and charged separately from other observability systems, according to 650 Group. Additional qualifiers for inclusion in the report include:
- The ability to inspect and gather network, security, and computing traffic by extracting event metadata from packets or computing infrastructure is a separate set of tools beyond event-based logging.
- May be hardware probes or virtual agents.
- Must maintain multi-vendor support.
- Must support multiple networks, such as public cloud, private data centers, and colocation deployments.
- Should be interoperable with numerous observability platform data lakes.
Key findings from the 650 Group’s ‘deep observability quarterly market and long-term forecast report’ include:
- Deep observability market revenue is projected to be $505M in 2023, with a revenue growth of 52 percent to reach $769M in 2024.
- Cloud-delivered deep observability offerings are projected to drive the highest revenue in future years accounting for 51 percent of the nearly $2B in revenue by 2027.
- North America drove 60 percent in the first half and is expected to continue to deliver a majority of the revenue through 2027, followed by Europe and then Asia Pacific (excluding China).
- The report indicates that cloud and subscription-based offerings should comprise the majority of revenue during the forecast period.
- Vendors included in the report include Arista, Gigamon, Kentik, Keysight, and Netscout.