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From terabytes to insights: Real-world AI obervability architecture

by Investor News Today
August 10, 2025
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From terabytes to insights: Real-world AI obervability architecture
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Take into account sustaining and growing an e-commerce platform that processes thousands and thousands of transactions each minute, producing giant quantities of telemetry information, together with metrics, logs and traces throughout a number of microservices. When vital incidents happen, on-call engineers face the daunting activity of sifting by way of an ocean of information to unravel related indicators and insights. That is equal to looking for a needle in a haystack. 

This makes observability a supply of frustration relatively than perception. To alleviate this main ache level, I began exploring an answer to make the most of the Mannequin Context Protocol (MCP) so as to add context and draw inferences from the logs and distributed traces. On this article, I’ll define my expertise constructing an AI-powered observability platform, clarify the system structure and share actionable insights realized alongside the best way.

Why is observability difficult?

In fashionable software program methods, observability shouldn’t be a luxurious; it’s a primary necessity. The power to measure and perceive system conduct is foundational to reliability, efficiency and person belief. Because the saying goes, “What you can not measure, you can not enhance.”

But, attaining observability in at this time’s cloud-native, microservice-based architectures is harder than ever. A single person request might traverse dozens of microservices, every emitting logs, metrics and traces. The result’s an abundance of telemetry information:


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  • Tens of terabytes of logs per day
  • Tens of thousands and thousands of metric information factors and pre-aggregates
  • Hundreds of thousands of distributed traces
  • Hundreds of correlation IDs generated each minute

The problem shouldn’t be solely the information quantity, however the information fragmentation. In line with New Relic’s 2023 Observability Forecast Report, 50% of organizations report siloed telemetry information, with solely 33% attaining a unified view throughout metrics, logs and traces.

Logs inform one a part of the story, metrics one other, traces one more. With no constant thread of context, engineers are pressured into guide correlation, counting on instinct, tribal data and tedious detective work throughout incidents.

Due to this complexity, I began to marvel: How can AI assist us get previous fragmented information and supply complete, helpful insights? Particularly, can we make telemetry information intrinsically extra significant and accessible for each people and machines utilizing a structured protocol reminiscent of MCP? This venture’s basis was formed by that central query.

Understanding MCP: A knowledge pipeline perspective

Anthropic defines MCP as an open normal that enables builders to create a safe two-way connection between information sources and AI instruments. This structured information pipeline contains:

  • Contextual ETL for AI: Standardizing context extraction from a number of information sources.
  • Structured question interface: Permits AI queries to entry information layers which might be clear and simply comprehensible.
  • Semantic information enrichment: Embeds significant context immediately into telemetry indicators.

This has the potential to shift platform observability away from reactive downside fixing and towards proactive insights.

System structure and information stream

Earlier than diving into the implementation particulars, let’s stroll by way of the system structure.

Structure diagram for the MCP-based AI observability system

Within the first layer, we develop the contextual telemetry information by embedding standardized metadata within the telemetry indicators, reminiscent of distributed traces, logs and metrics. Then, within the second layer, enriched information is fed into the MCP server to index, add construction and supply consumer entry to context-enriched information utilizing APIs. Lastly, the AI-driven evaluation engine makes use of the structured and enriched telemetry information for anomaly detection, correlation and root-cause evaluation to troubleshoot software points. 

This layered design ensures that AI and engineering groups obtain context-driven, actionable insights from telemetry information.

Implementative deep dive: A 3-layer system

Let’s discover the precise implementation of our MCP-powered observability platform, specializing in the information flows and transformations at every step.

Layer 1: Context-enriched information era

First, we have to guarantee our telemetry information incorporates sufficient context for significant evaluation. The core perception is that information correlation must occur at creation time, not evaluation time.

def process_checkout(user_id, cart_items, payment_method):
    “””Simulate a checkout course of with context-enriched telemetry.”””
        
    # Generate correlation id
    order_id = f”order-{uuid.uuid4().hex[:8]}”
    request_id = f”req-{uuid.uuid4().hex[:8]}”
   
    # Initialize context dictionary that will likely be utilized
    context = {
        “user_id”: user_id,
        “order_id”: order_id,
        “request_id”: request_id,
        “cart_item_count”: len(cart_items),
        “payment_method”: payment_method,
        “service_name”: “checkout”,
        “service_version”: “v1.0.0”
    }
   
    # Begin OTel hint with the identical context
    with tracer.start_as_current_span(
        “process_checkout”,
        attributes={ok: str(v) for ok, v in context.gadgets()}
    ) as checkout_span:
       
        # Logging utilizing similar context
        logger.information(f”Beginning checkout course of”, further={“context”: json.dumps(context)})
       
        # Context Propagation
        with tracer.start_as_current_span(“process_payment”):
            # Course of fee logic…
            logger.information(“Cost processed”, further={“context”:

json.dumps(context)})

Code 1. Context enrichment for logs and traces

This strategy ensures that each telemetry sign (logs, metrics, traces) incorporates the identical core contextual information, fixing the correlation downside on the supply.

Layer 2: Knowledge entry by way of the MCP server

Subsequent, I constructed an MCP server that transforms uncooked telemetry right into a queryable API. The core information operations right here contain the next:

  1. Indexing: Creating environment friendly lookups throughout contextual fields
  2. Filtering: Deciding on related subsets of telemetry information
  3. Aggregation: Computing statistical measures throughout time home windows
@app.put up(“/mcp/logs”, response_model=Record[Log])
def query_logs(question: LogQuery):
    “””Question logs with particular filters”””
    outcomes = LOG_DB.copy()
   
    # Apply contextual filters
    if question.request_id:
        outcomes = [log for log in results if log[“context”].get(“request_id”) == question.request_id]
   
    if question.user_id:
        outcomes = [log for log in results if log[“context”].get(“user_id”) == question.user_id]
   
    # Apply time-based filters
    if question.time_range:
        start_time = datetime.fromisoformat(question.time_range[“start”])
        end_time = datetime.fromisoformat(question.time_range[“end”])
        outcomes = [log for log in results
                  if start_time <= datetime.fromisoformat(log[“timestamp”]) <= end_time]
   
    # Type by timestamp
    outcomes = sorted(outcomes, key=lambda x: x[“timestamp”], reverse=True)
   
    return outcomes[:query.limit] if question.restrict else outcomes

Code 2. Knowledge transformation utilizing the MCP server

This layer transforms our telemetry from an unstructured information lake right into a structured, query-optimized interface that an AI system can effectively navigate.

Layer 3: AI-driven evaluation engine

The ultimate layer is an AI element that consumes information by way of the MCP interface, performing:

  1. Multi-dimensional evaluation: Correlating indicators throughout logs, metrics and traces.
  2. Anomaly detection: Figuring out statistical deviations from regular patterns.
  3. Root trigger dedication: Utilizing contextual clues to isolate probably sources of points.
def analyze_incident(self, request_id=None, user_id=None, timeframe_minutes=30):
    “””Analyze telemetry information to find out root trigger and suggestions.”””
   
    # Outline evaluation time window
    end_time = datetime.now()
    start_time = end_time – timedelta(minutes=timeframe_minutes)
    time_range = {“begin”: start_time.isoformat(), “finish”: end_time.isoformat()}
   
    # Fetch related telemetry primarily based on context
    logs = self.fetch_logs(request_id=request_id, user_id=user_id, time_range=time_range)
   
    # Extract providers talked about in logs for focused metric evaluation
    providers = set(log.get(“service”, “unknown”) for log in logs)
   
    # Get metrics for these providers
    metrics_by_service = {}
    for service in providers:
        for metric_name in [“latency”, “error_rate”, “throughput”]:
            metric_data = self.fetch_metrics(service, metric_name, time_range)
           
            # Calculate statistical properties
            values = [point[“value”] for level in metric_data[“data_points”]]
            metrics_by_service[f”{service}.{metric_name}”] = {
                “imply”: statistics.imply(values) if values else 0,
                “median”: statistics.median(values) if values else 0,
                “stdev”: statistics.stdev(values) if len(values) > 1 else 0,
                “min”: min(values) if values else 0,
                “max”: max(values) if values else 0
            }
   
   # Establish anomalies utilizing z-score
    anomalies = []
    for metric_name, stats in metrics_by_service.gadgets():
        if stats[“stdev”] > 0:  # Keep away from division by zero
            z_score = (stats[“max”] – stats[“mean”]) / stats[“stdev”]
            if z_score > 2:  # Greater than 2 normal deviations
                anomalies.append({
                    “metric”: metric_name,
                    “z_score”: z_score,
                    “severity”: “excessive” if z_score > 3 else “medium”
                })
   
    return {
        “abstract”: ai_summary,
        “anomalies”: anomalies,
        “impacted_services”: record(providers),
        “suggestion”: ai_recommendation
    }

Code 3. Incident evaluation, anomaly detection and inferencing technique

Affect of MCP-enhanced observability

Integrating MCP with observability platforms may enhance the administration and comprehension of advanced telemetry information. The potential advantages embrace:

  • Sooner anomaly detection, leading to decreased minimal time to detect (MTTD) and minimal time to resolve (MTTR).
  • Simpler identification of root causes for points.
  • Much less noise and fewer unactionable alerts, thus decreasing alert fatigue and enhancing developer productiveness.
  • Fewer interruptions and context switches throughout incident decision, leading to improved operational effectivity for an engineering workforce.

Actionable insights

Listed here are some key insights from this venture that can assist groups with their observability technique.

  • Contextual metadata ought to be embedded early within the telemetry era course of to facilitate downstream correlation.
  • Structured information interfaces create API-driven, structured question layers to make telemetry extra accessible.
  • Context-aware AI focuses evaluation on context-rich information to enhance accuracy and relevance.
  • Context enrichment and AI strategies ought to be refined regularly utilizing sensible operational suggestions.

Conclusion

The amalgamation of structured information pipelines and AI holds huge promise for observability. We are able to remodel huge telemetry information into actionable insights by leveraging structured protocols reminiscent of MCP and AI-driven analyses, leading to proactive relatively than reactive methods. Lumigo identifies three pillars of observability — logs, metrics, and traces — that are important. With out integration, engineers are pressured to manually correlate disparate information sources, slowing incident response.

How we generate telemetry requires structural adjustments in addition to analytical strategies to extract that means.

Pronnoy Goswami is a cloud, AI infrastructure and distributed methods specialist.

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