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Data Center News > Blog > AI & Compute > From terabytes to insights: Real-world AI obervability architecture
AI & Compute

From terabytes to insights: Real-world AI obervability architecture

Last updated: August 9, 2025 8:38 pm
Published August 9, 2025
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Think about sustaining and creating an e-commerce platform that processes hundreds of thousands of transactions each minute, producing giant quantities of telemetry knowledge, together with metrics, logs and traces throughout a number of microservices. When vital incidents happen, on-call engineers face the daunting process of sifting by an ocean of knowledge to unravel related indicators and insights. That is equal to looking for a needle in a haystack. 

This makes observability a supply of frustration fairly 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 way in which.

Why is observability difficult?

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

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


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

The problem will not be solely the info quantity, however the knowledge fragmentation. Based on New Relic’s 2023 Observability Forecast Report, 50% of organizations report siloed telemetry knowledge, with solely 33% attaining a unified view throughout metrics, logs and traces.

Logs inform one a part of the story, metrics one other, traces yet one more. And not using a constant thread of context, engineers are compelled into guide correlation, counting on instinct, tribal information and tedious detective work throughout incidents.

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

Understanding MCP: An information pipeline perspective

Anthropic defines MCP as an open commonplace that permits builders to create a safe two-way connection between knowledge sources and AI instruments. This structured knowledge pipeline consists of:

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

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

System structure and knowledge move

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

Structure diagram for the MCP-based AI observability system

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

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

Implementative deep dive: A 3-layer system

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

Layer 1: Context-enriched knowledge era

First, we have to guarantee our telemetry knowledge comprises sufficient context for significant evaluation. The core perception is that knowledge 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.objects()}
    ) as checkout_span:
       
        # Logging utilizing similar context
        logger.information(f”Beginning checkout course of”, additional={“context”: json.dumps(context)})
       
        # Context Propagation
        with tracer.start_as_current_span(“process_payment”):
            # Course of cost logic…
            logger.information(“Fee processed”, additional={“context”:

json.dumps(context)})

Code 1. Context enrichment for logs and traces

This strategy ensures that each telemetry sign (logs, metrics, traces) comprises the identical core contextual knowledge, fixing the correlation drawback on the supply.

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Layer 2: Information entry by the MCP server

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

  1. Indexing: Creating environment friendly lookups throughout contextual fields
  2. Filtering: Deciding on related subsets of telemetry knowledge
  3. Aggregation: Computing statistical measures throughout time home windows
@app.publish(“/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. Information transformation utilizing the MCP server

This layer transforms our telemetry from an unstructured knowledge 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 knowledge by 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 willpower: Utilizing contextual clues to isolate seemingly sources of points.
def analyze_incident(self, request_id=None, user_id=None, timeframe_minutes=30):
    “””Analyze telemetry knowledge to find out root trigger and proposals.”””
   
    # 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 companies talked about in logs for focused metric evaluation
    companies = set(log.get(“service”, “unknown”) for log in logs)
   
    # Get metrics for these companies
    metrics_by_service = {}
    for service in companies:
        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.objects():
        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 commonplace 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”: checklist(companies),
        “suggestion”: ai_recommendation
    }

Code 3. Incident evaluation, anomaly detection and inferencing technique

Affect of MCP-enhanced observability

Integrating MCP with observability platforms might enhance the administration and comprehension of complicated telemetry knowledge. The potential advantages embody:

  • Quicker anomaly detection, leading to diminished 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 lowering alert fatigue and enhancing developer productiveness.
  • Fewer interruptions and context switches throughout incident decision, leading to improved operational effectivity for an engineering crew.

Actionable insights

Listed below are some key insights from this mission that may assist groups with their observability technique.

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

Conclusion

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

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

Pronnoy Goswami is an AI and knowledge scientist with greater than a decade within the discipline.


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TAGGED: architecture, Insights, obervability, RealWorld, terabytes
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