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Observability & Monitoring: Scenario-Based Questions

12. How would you design an observability system for a microservices-based application?

Observability enables teams to understand the internal state of a system based on its outputs. In a microservices environment, observability must account for distributed services, asynchronous communication, and dynamic scaling.

๐Ÿ“Š Core Observability Pillars

  • Logs: Structured, queryable logs (JSON format) that capture application events and error traces.
  • Metrics: Time-series data for CPU, memory, request rates, error counts, and latency.
  • Traces: Distributed tracing for understanding cross-service requests and bottlenecks.

๐Ÿ—๏ธ High-Level Architecture

  • Log Aggregation: Fluent Bit or Logstash โ†’ Elasticsearch or Loki.
  • Metrics Collection: Prometheus (pull model), with Grafana for dashboards.
  • Tracing: OpenTelemetry agents โ†’ Jaeger or Tempo for trace analysis.
  • Alerting: Alertmanager or Grafana alerts with on-call rotation integration.

๐Ÿงช Key Monitoring Strategies

  • Instrument code with OpenTelemetry SDKs (HTTP, DB, cache layers).
  • Track golden signals: latency, traffic, errors, saturation.
  • Use service-level dashboards (per microservice) and global heatmaps.
  • Set SLOs/SLIs and measure error budgets over rolling windows.

โœ… Best Practices

  • Correlate logs, metrics, and traces with shared request IDs or trace IDs.
  • Limit cardinality in metrics to prevent overload (e.g., labels with user IDs).
  • Use anomaly detection for proactive alerting.
  • Perform observability reviews as part of service onboarding.

๐Ÿšซ Common Mistakes

  • Relying only on logs without metrics or tracing.
  • Alerting on low-priority issues or missing thresholds entirely.
  • Using inconsistent instrumentation across services.

๐Ÿ“Œ Real-World Insight

Modern observability systems are not just about detecting failure โ€” they enable debugging, capacity planning, and user impact analysis. At scale, success comes from standardization, self-service dashboards, and consistent telemetry pipelines.