Executive Summary

Key Takeaways

IT observability platforms have evolved into critical operational intelligence systems that help enterprises understand and manage increasingly distributed and dynamic technology environments. Organizations rely on observability to correlate telemetry data across infrastructure, applications and services while improving operational resilience and service performance. Artificial intelligence (AI), automation and unified analytics capabilities are accelerating the shift from reactive monitoring toward predictive and context-driven operational management.

Software Provider Summary
The ISG Buyers Guide™ for IT Observability Platforms evaluates 24 software providers offering products supporting telemetry analysis, operational visibility and AI-driven observability workflows. The research ranked the top three overall leaders as ServiceNow, Dynatrace and BMC. Providers were classified using weighted performance in Product Experience and Customer Experience for ISG quadrant placement. BMC, Cisco, Datadog, Dynatrace, Elastic, Google Cloud, Grafana Labs, Microsoft, Oracle and ServiceNow were rated as Exemplary, with Coralogix, Fabrix.ai and ManageEngine rated as Innovative. Broadcom, Chronosphere and IBM were rated as Assurance; and Honeycomb, LogicMonitor, New Relic, OpsRamp, ScienceLogic, SolarWinds, Sumo Logic and Zenoss were rated as Merit.

Product Experience Insights
Product Experience, representing 80% of the evaluation, focuses on Capability (35%) and Platform (45%), which includes adaptability, manageability, reliability and usability. ServiceNow, Dynatrace and BMC achieved the highest performance as Leaders in this category, supported by event correlation and real-time monitoring capabilities combined with predictive analytics and intelligent automation. Leaders demonstrated enterprise-grade platform capabilities across varied infrastructure, application and operational contexts.

Customer Experience Value
Customer Experience, representing 20% of the evaluation, focuses on validation and TCO/ROI. Dynatrace, ServiceNow and Microsoft were the Leaders in this category, showing strong customer commitment and clear dedication to customer needs. Providers with lower performance often lacked sufficient information to demonstrate customer success, articulate commitment to customer experience or communicate measurable value through TCO/ROI.

Strategic Recommendations
Enterprises should evaluate observability platforms based on their ability to provide unified visibility, contextual analytics and scalable operational intelligence across hybrid and multicloud environments. Assessment should prioritize telemetry integration, analytics maturity, automation support and interoperability with existing IT operations (ITOps) and DevOps) workflows. Organizations should also evaluate AI-enabled anomaly detection, root cause analysis and operational guidance capabilities that improve response speed and support long-term operational resilience.

The Findings

The software providers and products evaluated in this research offer product and customer experiences, but not every feature is equally valuable to every enterprise or is needed to support the relevant business processes and use cases. Moreover, having too many product capabilities may be a negative factor for an enterprise if it ISG_BG_IT_Observability_Overall_2026introduces unnecessary complexity. Nonetheless, you may decide that a more comprehensive set of capabilities is important and meets your enterprise’s requirements.

An effective customer relationship with a software provider is vital to the success of any investment. The overall customer experience and the full lifecycle of engagement play a key role in ensuring satisfaction and long-term success. Providers with dedicated customer leadership, such as chief customer officers, tend to invest more deeply in these relationships and prioritize customer outcomes in line with TCO and ROI expectations. It is equally important that this commitment to customer success is evident throughout the provider’s website, the buying process and the customer journey.

Overall Scoring of Software Providers Across Categories

The research finds ServiceNow atop the list, followed by Dynatrace and BMC. Providers that place in the top three of a category earn the designation of Leader. ServiceNow and Dynatrace have done so in four categories; BMC in three; Microsoft in two; and Cisco, Coralogix, Datadog in one category.

About the authors

Jeff Orr

Jeff Orr

Jeff leads the firm’s overall research and advisory for CIO and technology leader practice focused on digital modernization and transformation for IT to be successful across an organization. Jeff’s coverage spans cloud computing, digital security, generative AI and technologies for intelligent automation. Jeff previously led Ventana Research’s products organization and market research that enables comprehensive educational insights for our community of over 100k professionals. Prior to joining Ventana Research, he served as editor in chief and thought leader for Cyber Security Hub. Jeff spent a decade as a Research Director at ABI Research, and two decades as a technology, product and marketing leader. Jeff attended Embry-Riddle Aeronautical University, UC Berkeley and UC Santa Cruz. He is also an Oregon State University Certified Master Gardener.
David Menninger

David Menninger

David is responsible for the overall research direction of data, information and analytics technologies at Ventana Research covering major areas including Analytics, Big Data, Business Intelligence and Information Management along with the additional specific research categories including Information Applications, IT Performance Management, Location Intelligence, Operational Intelligence and IoT, and Data Science. David is also responsible for examining the role of cloud computing, collaboration and mobile technologies as they affect these areas. David brings to Ventana Research over twenty-five years of experience, through which he has marketed and brought to market some of the leading edge technologies for helping organizations analyze data to support a range of action-taking and decision-making processes. Prior to joining Ventana Research, David was the Head of Business Development & Strategy at Pivotal a division of EMC, VP of Marketing and Product Management at Vertica Systems, VP of Marketing and Product Management at Oracle, Applix, InforSense and IRI Software. David earned his MS in Business from Bentley University and a BS in Economics from University of Pennsylvania.