The rapid acceleration of AI adoption is reshaping the cybersecurity and cloud operations landscape, creating unprecedented demand for deeper visibility across hybrid environments. According to new research from 650 Group, the deep observability market expanded by an impressive 25% year over year in the first half of 2025 momentum that shows no signs of slowing. With a projected CAGR of 29% and expected revenues approaching $1.7 billion by 2029, deep observability has become one of the fastest-growing segments in the broader observability ecosystem.
At the center of this surge is Gigamon, which secured 50% market share in 1H25, reaffirming its leadership in an increasingly competitive market. The research underscores a clear trend: as organisations deploy GenAI and LLM-driven workloads at scale, traditional visibility and monitoring tools are no longer sufficient. Hybrid cloud architectures now carry higher operational risk, wider attack surfaces, and more opaque data flows than ever before making deep observability an essential pillar of modern cloud governance.
Why Deep Observability Is Becoming Foundational for AI Workloads
AI-based systems introduce new security and performance challenges. Large language models, for example, generate vast amounts of east–west traffic, access sensitive data stores, and often operate within distributed cloud environments where traditional logging provides only partial insight.
Deep observability closes these gaps by extracting network-derived telemetry from packets, flows, and application metadata. Unlike event logs or agent-based tools, this telemetry offers ground truth unfiltered, real-time visibility into how AI systems behave, how data moves, and where risks may emerge.
According to the 2025 Hybrid Cloud Security Survey, 92% of organisations now consider deep observability a foundational component of cloud security. This shift reflects a growing recognition that AI workloads require a new observability model one capable of illuminating encrypted, lateral, or otherwise hidden traffic patterns that attackers increasingly exploit.
Gigamon at the Center of a Market Undergoing Transformation
Enterprises and service providers around the world including cybersecurity leader Cybastion have adopted the Gigamon Deep Observability Pipeline to strengthen visibility and control across their hybrid cloud environments. By enriching packet-level intelligence with AI-powered insights, Gigamon enables faster threat detection, improved application performance monitoring, and more efficient compliance validation.
“For organisations scaling AI, deep observability is becoming strategically critical,” said Kevin Cardwell, CIO and CTO at Cybastion. “Gigamon continues to provide the clarity and resilience we need to stay ahead of threats.”
Gigamon’s president and CEO, Shane Buckley, echoes this sentiment, noting that trusted, network-born telemetry is now indispensable for ensuring AI workloads remain secure, compliant, and performant.
A Market Evolving Toward Cloud-Delivered Visibility
The 650 Group report reveals several notable trends, including:
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Asia Pacific leading regional growth with 38% YoY revenue increase
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Cloud-delivered deep observability projected to account for over 90% of revenue by 2029
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Continued market expansion driven by AI complexity and hybrid cloud scale
With organisations racing to operationalise AI securely and efficiently, deep observability has moved from a niche security function to a strategic enterprise requirement and Gigamon remains at the forefront of this transformation.
