New Relic State of Observability for Energy and Utilities report reveals 40 per cent of respondents experience high-business-impact outages at least once a week, with providers embracing observability and AIOps to reduce the impact.
New Relic has published its State of Observability for Energy and Utilities report, which offers insights and analysis on the adoption and business value of observability for the energy and utilities industry.
The report is based on insights from 132 technology professionals and was developed in association with the 2023 Observability Forecast. The report findings show energy and utilities organizations are investing in observability, particularly AIOps and mobile monitoring, to create real-time insights into their infrastructure and reduce outage costs and frequency.
The report highlights the importance of implementing observability, with 66 per cent saying their organization receives $1 million or more in total value from their observability investment per year—more than any other industry. Based on annual spend and annual value received estimates, energy and utilities organizations receive nearly a 3x median annual return on investment (RoI). The report findings also show that the energy and utilities sector see observability as integral to their business, with 50 per cent of IT decision-makers noting that observability helps them establish a technology strategy.
“Nobody wants their lights to go out without warning. This means that uptime and reliability is a top priority for energy and utilities providers,” said New Relic Chief Design and Strategy Officer Peter Pezaris. “Implementing and maturing their observability practice offers a path forward for energy and utilities providers, creating greater visibility and faster time to resolution.”
AI adoption on the rise
The powerful combination of observability and AI can support organizations to create a greater understanding of telemetry data and address the challenges associated with ever-expanding data sets. More than half (56 per cent) of respondents from energy and utilities organizations reported having deployed AIOps capabilities, including anomaly detection, incident intelligence, and root cause analysis, with 89 per cent planning to have AIOps deployed by mid-2026. AIOps can support energy and utilities organizations by contributing to operational efficiency and enabling faster response times. It helps teams gather actionable insights and supports decision-makers to uncover learnings regarding system performance; improving incident detection and resolution.
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