How Observability Turns Alerts Into Insight
(5 Minutes) | What it is (and Isn't), How it Works, and Building Sustainable Observability
Get our Architecture Patterns Playbook for FREE on newsletter signup:
Myth: One model fits all. Reality: Pick Claude/GPT/Gemini/Llama for the task.
Presented by Kilo Code
The goal isn’t picking one perfect model. It’s creating a model strategy that scales with your org. That’s where Kilo Code comes in. It’s founded by the co-founder of GitLab. And it’s reached 400,000 downloads in under 6 months.
How Observability Turns Alerts Into Insight
Your dashboard says the API is slow, but every log you check looks fine.
The problem isn’t your alert; it’s your visibility.
Monitoring tells you what broke. Observability tells you why.
And in complex, distributed systems, that difference is everything.
What Observability is (and Isn’t)
Observability is the ability to understand a system’s internal state by looking at what it produces (its logs, metrics, and traces) without needing to look inside the code or system.
An observable system doesn’t just tell you when something broke; it lets you ask new questions about why it broke. Questions you didn’t anticipate when you first instrumented it.
That’s the difference between observability and simple monitoring.
Monitoring is rule-based: you define thresholds, collect known metrics, and wait for alerts when they breach thresholds. It works well for known failure modes (e.g. CPU spikes, memory leaks, slow endpoints) but struggles when new patterns emerge.
Observability, on the other hand, is exploratory: it gives engineers the context to debug the unknown-unknowns; those incidents that no dashboard could have predicted.
A healthy system needs both. Monitoring is your early warning system; observability is the full diagnostic toolkit. Monitoring tells you what and when. Observability helps you uncover why and how.
How it Works
Observability relies on three core data types (logs, metrics, and traces), each describing the system from a different angle.
Think of them as layers of the same story: metrics tell you that something happened, traces show where, and logs explain why.
Logs capture the narrative; individual events, exceptions, and debugging context. They’re granular but noisy, best for deep dives.
Metrics condense behavior into quantifiable signals (CPU usage, request rate, error ratio). They’re lightweight and ideal for dashboards and alerts.
Traces connect the dots across services, showing where time is spent as a request travels between components. They make distributed systems explainable.
These pillars reinforce each other:
A spike in a metric points you to when the issue began.
The trace shows which service or dependency slowed down.
The logs reveal what caused it: an exception, timeout, or config mismatch.
The real magic happens in the platform layer: the system that ties these signals together.
A good observability platform:
✓ Correlates telemetry across services using shared IDs or trace contexts.
✓ Supports both real-time dashboards and ad-hoc queries.
✓ Automatically discovers new components as your architecture evolves.
Without that connective tissue, logs, metrics, and traces remain disconnected data silos.
With it, you get a single, coherent story: from alert → trace → log → fix.
Building Sustainable Observability
Good observability isn’t about collecting the most data; it’s about collecting the right data, at the right depth for your system.
Done well, it turns telemetry into understanding. Done poorly, it adds noise, cost, and confusion.
Here’s how to build observability that scales with your architecture and stays useful over time.
Instrument With Intention
Don’t measure everything; measure what matters.
Focus on the critical paths that affect users and business outcomes. Add structured logs, request IDs, and key metrics like latency, traffic, and error rate around them.
High-traffic systems generate enormous telemetry; so filter aggressively, sample traces, and keep retention tight. Clarity always beats volume.
Correlate Your Data
Logs, metrics, and traces only tell a full story when they’re connected.
Without correlation, debugging means juggling different tools and guessing where to look.
Use consistent identifiers across services so you can move from an alerting metric to a related trace, and then to the exact log entry that explains it.
Define Meaningful SLOs and Alerts
Too many alerts create noise; too few alerts create blind spots.
Service Level Objectives (SLOs) help you strike the balance by aligning telemetry to user experience: uptime, latency, and error rates that reflect real impact.
Alert when those SLOs are at risk, not every time a metric dips or rises. This keeps focus on incidents that truly matter.
Manage Overhead and Cost
Telemetry isn’t free. Every trace, log, and export consumes CPU, bandwidth, and storage.
Use lightweight, asynchronous libraries and limit high-detail tracing to critical workflows.
Keep costs in check by controlling metric cardinality, capping log verbosity in production, and regularly auditing what data still earns its keep.
Unify Your Tools
Tool sprawl kills visibility.
When logs, metrics, and traces live in different platforms, investigations stall.
Centralize or integrate your observability stack so you can pivot seamlessly between signals. A unified view turns a multi-dashboard hunt into a single timeline of cause and effect.
Build Observability Into Development
Observability shouldn’t start after launch, it should start during implementation.
Make “instrument as you build” a default practice: every new feature should ship with metrics, logs, and traces ready.
This prevents blind spots later and reduces the need for reactive instrumentation mid-incident.
Secure and Govern Telemetry
Telemetry often contains user data, payloads, or tokens. Treat it like production data.
Sanitize sensitive fields, encrypt at rest and in transit, and restrict access by role.
A leak in your observability pipeline is still a data breach.
Match Depth to Architecture
Not all systems need full telemetry.
A simple monolith can thrive on basic monitoring, but distributed systems (microservices, serverless, or ephemeral environments) require full telemetry and correlation to trace requests and uncover cross-service failures.
Recap
Observability isn’t about collecting endless data, it’s about building confidence in your systems.
When metrics, traces, and logs work together, you move from reacting to issues to truly understanding them.
Start simple: instrument the critical paths, connect your signals, and define what “healthy” looks like through SLOs.
Then grow deliberately: adding depth as your architecture and reliability needs evolve.
In the end, the goal isn’t dashboards or alerts. It’s insight.
Good observability lets you ask better questions, find answers faster, and design systems that explain themselves and help you fix them before users ever notice something’s wrong.
Subscribe to get simple-to-understand, visual, and engaging system design articles straight to your inbox: