Dynatrace Perform 2025: AI Observability Redefines IT Strategy

The conversation around AI and observability took centre stage at Dynatrace Perform 2025 in Las Vegas. Over three days, the event highlighted how AI-enabled observability drives innovation, automation, and security across enterprises.

Through a series of in-depth discussions, I sat down with three leading voices in the industry—Steve Tack (Chief Product Officer, Dynatrace), Howard Boville (Executive Vice President, DXC), and Alois Reitbauer (Chief Technology Strategist, Dynatrace). They shared their perspectives with me on the evolution of IT operations, the future of AI observability, and how organizations can stay ahead of the pace of technological change.

AI and Observability: Moving from Reactive to Proactive IT

Steve Tack, Chief Product Officer at Dynatrace, started the conversation by explaining how businesses shift from traditional monitoring to proactive, AI-driven observability. Integrating AI into IT operations allows enterprises to move beyond reactive troubleshooting and towards a model where problems are predicted and prevented before they impact performance.

One of the most significant advancements discussed was the expansion of Dynatrace’s AIOps capabilities, mainly preventive AI. Using predictive models, Dynatrace enables IT teams to anticipate issues like system overloads or security vulnerabilities, making self-healing systems a reality. Steve also highlighted how Dynatrace redefines observability for AI workloads, ensuring that businesses deploying large language models and AI-native services can operate them at scale, securely, and efficiently.

Digital Twins, Quantum Security, and the Enterprise IT Evolution

Bringing a broader enterprise IT perspective, Howard Boville of DXC shared how AI is helping organizations modernize legacy systems, optimize cloud environments, and prepare for emerging technologies like quantum computing.

We also discussed the rise of digital twins and how these virtual representations of IT environments allow companies to simulate the impact of AI deployments, cloud migrations, and security changes before they happen. Initially used in manufacturing, digital twins are now a game-changer for IT teams aiming to reduce risk and improve efficiency.

Howard also raised a critical issue that many organizations aren’t thoroughly preparing for: quantum computing’s impact on security. The rapid advancement of quantum technology means that once deemed secure, encryption methods will soon be obsolete. DXC and Dynatrace are working to help enterprises identify and remediate vulnerabilities before quantum threats become a reality.

Beyond the technology trends, Howard emphasized the need for businesses to rethink their IT workforce strategies in an AI-first world. With automation handling more routine tasks, companies must ensure they are reskilling employees and integrating AI as a productivity enhancer rather than a workforce replacement.

AI Observability: The Future of IT Operations

Alois Reitbauer, Chief Technology Strategist at Dynatrace, explained how Dynatrace has been integrating AI into its platform for over a decade, refining its approach with the development of causal AI, predictive analytics, and automated remediation tools.

He noted that one of the key differentiators for Dynatrace is that it isn’t simply layering AI on top of existing products—it has built its AI into the core of its observability platform. The result? IT teams don’t just receive alerts; they get actionable recommendations and automated solutions that significantly reduce manual intervention.

Alois also introduced the concept of the Minimum Viable Enterprise (MVE). He explained how this strategic approach helps businesses identify their most critical digital processes and ensure they are resilient, secure, and continuously optimized. As enterprises move towards fully autonomous IT, I was left pondering a future where frameworks like MVE will play a vital role in balancing automation with human oversight.

What’s Next for AI-Enabled Observability?

A consistent theme across all three conversations was the convergence of observability, security, and automation. Looking ahead, Steve, Howard, and Alois identified several trends that will shape enterprise IT over the next five years:

• End-to-end business observability: Companies will increasingly demand visibility across workflows, not just isolated applications.
• AI-driven security: As cyber threats grow more sophisticated, AI-powered observability will become a key defense mechanism.
• Seamless IT automation: Self-healing, self-securing, and self-optimizing IT environments will reduce human intervention, allowing teams to focus on innovation rather than troubleshooting.
• Greater collaboration across teams: IT, security, and business units will need to break down silos and work more closely to align their digital transformation goals.

At Dynatrace Perform 2025, it was clear that AI observability is already becoming the foundation of modern IT operations. Will enterprises embrace this shift, leveraging AI-powered solutions to monitor their systems and optimize, secure, and future-proof them?

What are your thoughts on AI observability and its role in the future of IT?

Let’s continue the conversation, by commenting below.