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DevOps Observability: The Complete Guide to Logs, Metrics, and Traces

Observability goes beyond monitoring to help you understand why systems break, not just when. This guide covers the three pillars (logs, metrics, traces), implementation strategies, and the tools landscape.

14 min readUpdated January 8, 2026By CodePulse Team

DevOps observability goes beyond traditional monitoring to give you deep insight into what your systems are doing and why. While monitoring tells you when something is broken, observability helps you understand why it broke—and predict what might break next. This guide covers the three pillars of observability, how to implement them effectively, and which tools can help your engineering team move from reactive firefighting to proactive system understanding.

"Monitoring tells you when things are broken. Observability tells you why—and helps you predict what will break next."

What Is DevOps Observability?

Observability is the ability to understand the internal state of your systems by examining their external outputs. In DevOps, this means being able to ask any question about your production systems and get answers without deploying new code or instrumentation.

The concept originated in control theory, where a system is considered "observable" if you can determine its internal state from its outputs. For software systems, this translates to having enough telemetry data (logs, metrics, traces) to debug any issue without needing to reproduce it locally.

Observability vs Monitoring: Key Differences

AspectMonitoringObservability
QuestionsKnown unknowns (predefined alerts)Unknown unknowns (exploratory)
ApproachDashboard-centric, threshold-basedQuery-centric, correlation-based
DataAggregated metrics, fixed viewsHigh-cardinality, raw events
Debugging"Alert fired" → check runbookExplore data → find root cause
ValueKnow when something is wrongUnderstand why and prevent recurrence

The shift from monitoring to observability reflects the reality of modern distributed systems. Microservices, containers, and serverless architectures create complex interactions that simple threshold-based monitoring cannot capture. You need the ability to trace requests across services, correlate events, and explore data in ways you did not anticipate when setting up your instrumentation.

/// Our Take

Observability is not a replacement for monitoring—it is an evolution. You still need alerts when things break. But observability gives you the power to understand why and to find issues before they become outages.

Teams that invest in observability spend less time firefighting and more time building. The ROI shows up in faster incident resolution, fewer repeat incidents, and engineers who are not constantly on-call stress.

The Three Pillars of Observability

Modern observability is built on three complementary data types: logs, metrics, and traces. Each serves a different purpose, and together they provide a complete picture of system behavior.

The three pillars of observability: Logs, Metrics, and Traces converging to provide full system observability
Complete observability requires all three pillars working together

Pillar 1: Logs

Logs are timestamped records of discrete events. They capture what happened, when, and with what context. In observability, structured logs (JSON format with consistent fields) are far more valuable than unstructured text.

Log TypePurposeExample
Application logsBusiness logic eventsUser login, order placed, payment failed
System logsInfrastructure eventsContainer start, OOM kill, disk full
Access logsRequest/response recordsHTTP requests, API calls, status codes
Audit logsSecurity and compliancePermission changes, data access

Best practices for effective logging:

  • Use structured JSON format with consistent field names
  • Include correlation IDs to link related events across services
  • Add context (user ID, request ID, environment) to every log
  • Log at appropriate levels (DEBUG, INFO, WARN, ERROR)
  • Avoid logging sensitive data (PII, secrets, tokens)

Pillar 2: Metrics

Metrics are numerical measurements collected over time. Unlike logs (which capture individual events), metrics aggregate data into time series that reveal trends, patterns, and anomalies.

Metric TypeWhat It MeasuresExamples
CounterCumulative total (only increases)Total requests, errors, bytes sent
GaugeCurrent value (can go up or down)CPU usage, memory, queue depth
HistogramDistribution of valuesRequest latency percentiles
SummaryPre-calculated quantilesP50, P95, P99 response times

The RED and USE methods provide frameworks for what to measure:

  • RED (for services): Rate (requests/sec), Errors (failed requests), Duration (latency)
  • USE (for resources): Utilization (% busy), Saturation (queue depth), Errors

Pillar 3: Traces

Distributed traces follow a single request as it flows through multiple services. Each "span" represents one operation, and together they form a trace that shows exactly where time was spent and where failures occurred.

Traces are essential for microservices architectures where a single user action might touch dozens of services. Without tracing, debugging becomes a game of correlating timestamps across service logs.

TRACE: User checkout request (trace_id: abc123)
═══════════════════════════════════════════════════════════

[API Gateway]──────────────────────────────────────────────┐
│ 2ms                                                      │
└──[Auth Service]──────────┐                               │
   │ 15ms                  │                               │
   └──[User DB]            │                               │
      │ 12ms               │                               │
      └────────────────────┘                               │
   └──[Cart Service]───────────────────────────┐           │
      │ 45ms                                   │           │
      └──[Inventory Service]──────────┐        │           │
         │ 28ms                       │        │           │
         └──[Inventory DB]            │        │           │
            │ 18ms (SLOW)             │        │           │
            └─────────────────────────┘        │           │
      └──[Pricing Service]────────────┐        │           │
         │ 8ms                        │        │           │
         └────────────────────────────┘        │           │
      └────────────────────────────────────────┘           │
   └──[Payment Service]────────────────────────────────┐   │
      │ 120ms                                          │   │
      └──[Payment Gateway (external)]                  │   │
         │ 95ms                                        │   │
         └─────────────────────────────────────────────┘   │
└──────────────────────────────────────────────────────────┘

Total: 215ms | Bottleneck: Payment Gateway (44%)

Key tracing concepts:

  • Trace ID: Unique identifier for the entire request journey
  • Span: One operation within the trace (has start/end time)
  • Parent span: Links spans to show call hierarchy
  • Context propagation: How trace IDs flow between services
Detect code hotspots and knowledge silos with CodePulse

Key Observability Metrics to Track

While the specific metrics depend on your architecture, these categories apply to most systems:

Service Health Metrics

MetricWhat to WatchAlert Threshold
Request rateSudden drops or spikes>30% change in 5 min
Error rate5xx errors as % of total>1% for 5 min
P99 latencyTail latency trends>2x baseline for 5 min
SaturationThread pools, connection pools>80% utilized
Apdex scoreUser satisfaction proxy<0.85 for 10 min

Infrastructure Metrics

MetricWhat to WatchAlert Threshold
CPU utilizationSustained high usage>85% for 15 min
Memory usageTrends toward limits>90% or growing
Disk I/OSaturation, latency>80% utilization
Network errorsPacket loss, retriesAny sustained increase
Container restartsOOM kills, crashes>3 restarts/hour

Business Metrics

Technical metrics matter, but business metrics tell you if users are actually affected:

  • Conversion rate: Orders per visitor session
  • Checkout completion: Started vs completed checkouts
  • API success rate: Successful API calls by endpoint
  • Feature usage: Which features are being used
  • Revenue impact: Transactions per minute/hour

"The best SRE teams measure business impact, not just system health. A 99.99% uptime means nothing if checkout is broken."

The Observability Tools Landscape

The observability market includes both open-source tools and commercial platforms. Here is how they compare:

Commercial Observability Platforms

ToolStrengthsBest For
DatadogAll-in-one platform, excellent UX, 750+ integrationsTeams wanting unified observability
New RelicStrong APM, consumption pricing, free tierApplication-centric observability
SplunkPowerful log analysis, security featuresEnterprises with security focus
DynatraceAI-powered root cause, auto-discoveryComplex enterprise environments
HoneycombHigh-cardinality queries, BubbleUp analysisDebugging complex distributed systems
LightstepTrace-first approach, change intelligenceMicroservices debugging

Open-Source Observability Stack

ToolPurposeNotes
PrometheusMetrics collection and storageDe facto standard for Kubernetes metrics
GrafanaVisualization and dashboardsWorks with multiple data sources
LokiLog aggregationPrometheus-like labels for logs
TempoDistributed tracingCost-effective trace storage
JaegerDistributed tracingCNCF project, good Kubernetes integration
OpenTelemetryInstrumentation standardVendor-neutral telemetry collection
Elasticsearch + KibanaLog storage and searchPowerful but resource-intensive

How to Choose

If You...Consider
Want minimal operational overheadCommercial SaaS (Datadog, New Relic)
Have strict data residency requirementsSelf-hosted (Prometheus/Grafana stack)
Need advanced trace analysisHoneycomb or Lightstep
Are cost-conscious with high volumeOpen-source stack or hybrid
Run Kubernetes at scalePrometheus + Grafana + Loki + Tempo
Need enterprise features (SSO, audit)Commercial platforms

/// Our Take

Start with OpenTelemetry for instrumentation regardless of which backend you choose. It is vendor-neutral, widely supported, and future-proofs your instrumentation investment.

The real cost of observability is not the tooling—it is the engineering time to instrument, maintain dashboards, and build expertise. Factor this into your build vs buy decision.

Implementing Observability: A Practical Guide

Phase 1: Foundation (Weeks 1-2)

  1. Audit current state: What telemetry do you already have? Where are the gaps?
  2. Define SLIs/SLOs: What does "working" mean for each service? Set measurable targets.
  3. Choose your stack: Commercial platform or open-source? Consider team expertise and budget.
  4. Set up collection: Deploy agents/collectors, configure log shipping, enable metrics endpoints.

Phase 2: Instrumentation (Weeks 3-4)

  1. Add OpenTelemetry SDKs: Instrument your critical services with tracing and metrics.
  2. Standardize logging: Move to structured JSON logs with consistent fields and correlation IDs.
  3. Enable auto-instrumentation: Use language agents for automatic HTTP/database/cache tracing.
  4. Add custom spans: Instrument business-critical code paths that auto-instrumentation misses.

Phase 3: Dashboards and Alerts (Weeks 5-6)

  1. Build service dashboards: One dashboard per service showing RED metrics and dependencies.
  2. Create system overview: High-level dashboard showing overall health and key business metrics.
  3. Configure SLO-based alerts: Alert on error budget burn rate, not arbitrary thresholds.
  4. Set up on-call runbooks: Link alerts to actionable documentation.

Phase 4: Culture and Process (Ongoing)

  1. Run game days: Practice debugging with observability tools during controlled incidents.
  2. Blameless postmortems: Use observability data to understand incidents, not assign blame.
  3. Review and refine: Regularly audit dashboards and alerts. Remove unused ones.
  4. Share knowledge: Document debugging patterns and query templates for the team.

📊 How to Track in CodePulse

While CodePulse focuses on engineering workflow observability (PR cycle times, deployment frequency, team collaboration), it complements production observability by helping you understand:

Common Observability Pitfalls

Pitfall 1: Alert Fatigue

Too many alerts lead to ignored alerts. Every alert should be actionable. If you are ignoring alerts, either fix the underlying issue or delete the alert.

Pitfall 2: Dashboard Sprawl

Teams create dashboards for every situation but maintain none. Start with a small set of core dashboards and resist adding more until you are actually using what you have.

Pitfall 3: Missing Correlation IDs

Without correlation IDs, debugging distributed systems is nearly impossible. Every request should carry a trace ID from entry to exit.

Pitfall 4: High-Cardinality Explosions

Adding user IDs or request IDs as metric labels creates cardinality explosions that crash your metrics system. Use logs or traces for high-cardinality data.

Pitfall 5: Neglecting Cost

Observability costs can grow exponentially with scale. Monitor your observability costs and set retention policies appropriate to your needs.

"The goal is not to collect all the data—it is to collect the right data. More telemetry is not better telemetry."

Observability Maturity Model

Assess where your team stands and what to work on next:

LevelCharacteristicsFocus Areas
Level 1: ReactiveUsers report issues before you know; limited logging; no tracingBasic metrics, centralized logging
Level 2: ProactiveAlerts catch most issues; dashboards exist; some tracingSLOs, distributed tracing, structured logs
Level 3: PredictiveAnomaly detection; correlation across pillars; debug any issueError budget policies, game days, automation
Level 4: OptimizingContinuous improvement; observability-driven development; chaos engineeringBusiness metrics, cost optimization, team enablement

Conclusion

DevOps observability is the foundation for operating reliable, scalable systems. By implementing the three pillars—logs, metrics, and traces—you gain the ability to understand system behavior, debug issues quickly, and prevent problems before they affect users.

  • Start with the three pillars—logs, metrics, and traces work together
  • Use OpenTelemetry—vendor-neutral instrumentation protects your investment
  • Define SLOs first—know what "working" means before setting up alerts
  • Avoid alert fatigue—every alert should be actionable
  • Instrument progressively—start with critical paths, expand based on need

The shift from monitoring to observability is not just about tools—it is about building a culture of understanding your systems deeply. Teams with strong observability practices spend less time firefighting and more time building features that matter.

Complement your production observability with CodePulse's engineering workflow observability to get visibility into both how your code performs in production and how efficiently your team delivers it.

"Observability is not a project with an end date. It is a practice that evolves with your systems and your team's understanding of them."

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