Thought leadership
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July 16, 2024

Standalone vs. Embedded Tools for Data Observability: Choosing the Right Approach

Both approaches offer unique benefits and challenges, impacting everything from implementation speed to long-term scalability. 

Adrianna Vidal
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When implementing data observability tools, organizations face a critical decision: should they opt for standalone tools or embedded solutions? Both approaches offer unique benefits and challenges, impacting everything from implementation speed to long-term scalability. 

This blog post explores both of these options, helping you understand their strengths and weaknesses so you can make an informed choice for your organization. 

Understanding Data Observability

What is data observability?

Data observability refers to the ability of an organization to see and understand the state of their data at all times. By “state” we mean things like: where is it coming from and going within our pipelines, is it moving on time and with the volume we expect, is the quality high enough for our use cases, and is it behaving normally or did it change recently?

  • Here are some questions you could answer with data observability:
  • Is the customer’s table getting fresh data on time or is it delayed?
  • Do we have any duplicated shopping cart transactions and how many?
  • Was the huge decrease in average purchase size just a data problem or a real thing?
  • Will I be impacting anyone if I delete this table from our data warehouse?

Observability platforms aim to give a continuous and comprehensive view into the state of data moving through data pipelines, so questions like these can be easily answered.

Common data observability activities include: monitoring the operational health of the data to ensure it’s fresh and complete, detecting and surfacing anomalies that could indicate data accuracy issues, mapping data lineage to upstream tables to quickly identify the root causes of problems, and mapping lineage downstream to analytics and machine learning applications to understand the impacts of problems.

Once data teams unlock these activities, they can systematically understand when, where, and why data quality problems occur in their pipelines. They can then prevent those problems from impacting the business, and work to prevent them occurring in the future!

Data observability unlocks these basic activities, so it’s the first stepping stone toward every organization’s ultimate data wishlist: healthier pipelines, data teams with more free time, more accurate information, and happier customers.  

Why is data observability important?

Organizations push relentlessly to better use their data for strategic decision making, user experience, and efficient operations. All of those use cases assume that the data they run on is reliable.

The reality is that all data pipelines will experience failures. It’s not a question of if, but when, and how often. What the data team can control is how often issues tend to occur, how big the impact, and how stressed out they are when resolving these failures.

A data team that lacks this control will lose the trust of their organization, therefore limiting organizational willingness to invest in things like analytics, machine learning, and automation. On the other hand, a data team who consistently delivers reliable data can win the trust of their organization, and fully leverage data to drive the business forward.

Data observability is important because it is the first step toward having the level of control needed to ensure reliable data pipelines that win the trust of the organization and ultimately unlock more value from the data.

What are the benefits of data observability?

What do you get once you have total observability over your data pipelines? The bottom line is that the data team can ensure that data reaching the business is fresh, high quality, and reliable—which unlocks trust in the data.

Let’s break down the tangible benefits of data observability a little further:

Decreased impacts from data issues—when problems do occur, they’ll be understood and resolved faster; ideally before they reach a single stakeholder. Data outages will always be a risk, but with observability, their impacts are greatly reduced.

Less firefighting for the data team—you’ll spend less time firefighting data outages, and being reactive. That means more time building things, creating automation, and the other fun parts of data engineering and data science.

Increased trust in the data by stakeholders—once they stop seeing questionable data in their analytics, and stop hearing about ML model issues, they’ll start trusting the data and assuming it’s good for making decisions with or integrating into their products and services.

Increased investment in data from the business—once stakeholders can trust the data, they can feel comfortable using data in more places across the business, which means allowing a bigger budget on data and the data team.

With a clear understanding of what data observability is and why it's crucial, let's explore how to choose between standalone and embedded tools for implementing a data observability strategy.

Making the Right Choice

The decision between standalone and embedded tools for data observability hinges on various factors, including your organization's size, existing infrastructure, budget, and specific observability needs.

Standalone Tools for Data Observability

Standalone tools are dedicated solutions specifically designed for data observability. These tools offer robust features tailored to monitor, analyze, and manage data systems independently of other platforms.

 Pros

Cons

Specialized Features: Standalone tools often offer a comprehensive suite of features focused solely on data observability, providing deep insights and advanced capabilities.

Integration Complexity: Integrating standalone tools with existing data infrastructure can be complex and time-consuming, requiring significant setup and maintenance.

Scalability: These tools are typically built to handle large-scale data environments, making them suitable for growing organizations.

Cost: Standalone solutions can be expensive, with costs associated with licenses, maintenance, and potential integration services.

Independence: Standalone tools operate independently, ensuring that data observability functions are not impacted by changes in other systems.

Learning Curve: Teams may need to invest time and resources in learning how to use the new tool effectively.

Vendor Support: Dedicated vendors provide specialized support and continuous updates, ensuring the tool evolves with industry needs.

Duplication of Efforts: Using a separate tool might lead to duplication of efforts if similar functionalities exist within other systems.

 

Embedded Tools for Data Observability

Embedded tools are integrated within existing data platforms or analytics tools. These solutions offer observability features as part of a broader data management or analytics suite.

 Pros

Cons

Ease of Integration: Embedded tools are designed to work seamlessly within existing platforms, reducing setup time and complexity.

Limited Features: Embedded solutions may not offer the same depth of observability features as standalone tools, potentially limiting insights.

Cost-Effective: Since observability is an added feature of an existing platform, additional costs are often lower compared to standalone solutions.

Dependency on Platform: Observability capabilities are tied to the platform's overall performance and updates, which can pose risks if the platform experiences issues.

Unified Interface: Users benefit from a consistent interface and experience, streamlining workflows and reducing the learning curve.

Scalability Constraints: Embedded tools might struggle to scale independently of the host platform, potentially leading to performance bottlenecks.

Future Trends

We anticipate that in the future, most data tools will incorporate embedded observability features. Standalone tools will evolve to read and aggregate information from these embedded solutions. Currently, standalone tools must independently gather observability data, which requires significant engineering effort. However, as platforms like Snowflake and Databricks develop their own observability features, standalone tools will benefit by consuming this readily available information. Over time, standalone tools will become aggregators, providing a holistic view of your data at a glance.

This shift in the market is likely to take several more years. In the meantime, your choice should balance immediate needs with long-term strategic goals, ensuring that your data observability strategy supports your organization's growth and operational efficiency. The evolution of embedded observability features within data platforms will gradually reduce the burden on standalone tools, making them more efficient and integrated over time.

Ultimately, the right choice for your organization will depend on your current and future requirements, the complexity of your data environment, and the specific benefits each type of tool can offer.

Conclusion

Both standalone and embedded tools for data observability have their place in the modern data landscape. By carefully evaluating the pros and cons of each approach, you can select the solution that best aligns with your organizational needs and resources. Whether you prioritize specialized features and scalability or ease of integration and cost-effectiveness, the right tool will enhance your data observability efforts, ensuring reliable, high-quality data for your business operations.

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Resource
Monthly cost ($)
Number of resources
Time (months)
Total cost ($)
Software/Data engineer
$15,000
3
12
$540,000
Data analyst
$12,000
2
6
$144,000
Business analyst
$10,000
1
3
$30,000
Data/product manager
$20,000
2
6
$240,000
Total cost
$954,000
Role
Goals
Common needs
Data engineers
Overall data flow. Data is fresh and operating at full volume. Jobs are always running, so data outages don't impact downstream systems.
Freshness + volume
Monitoring
Schema change detection
Lineage monitoring
Data scientists
Specific datasets in great detail. Looking for outliers, duplication, and other—sometimes subtle—issues that could affect their analysis or machine learning models.
Freshness monitoringCompleteness monitoringDuplicate detectionOutlier detectionDistribution shift detectionDimensional slicing and dicing
Analytics engineers
Rapidly testing the changes they’re making within the data model. Move fast and not break things—without spending hours writing tons of pipeline tests.
Lineage monitoringETL blue/green testing
Business intelligence analysts
The business impact of data. Understand where they should spend their time digging in, and when they have a red herring caused by a data pipeline problem.
Integration with analytics toolsAnomaly detectionCustom business metricsDimensional slicing and dicing
Other stakeholders
Data reliability. Customers and stakeholders don’t want data issues to bog them down, delay deadlines, or provide inaccurate information.
Integration with analytics toolsReporting and insights

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