Open Source Data Observability: Pros, Cons, Alternatives

Explore the choices between open source and vendor-managed data observability in this comprehensive guide.

By

Jatin Solanki

Updated on

October 28, 2024

Every business understands the importance of collecting data, but having a vast data set is not enough. You need to cut the noise to filter meaningful data that can help you fuel market campaigns, enhance your productivity, and increase your overall efficiency. This is where data observability comes into play.

You need a powerful way to effectively monitor, analyze, and optimize data pipelines to gain competitive advantage and drive innovation. Data observability is a set of practices that helps you understand your data health. There are two approaches to data observability – open-source data observability and vendor-managed data observability.

In this post, we'll discuss both in detail so you know which one to use and when.

What is Data Observability?

Data observability includes continuously monitoring and understanding the health of your data throughout its lifecycle. It involves everything from data sources and pipelines to the transformation processes and the final destination where the data is used.

With data observability, you get an idea about which data is wrong, what data is not working, and how you can fix it.

The observability market is forecasted to reach $2B by 2026, growing from $278M in 2022.

Why Is Data Observability Crucial for Businesses?

Data observability has a lot to offer to businesses. Let's take a look at the several reasons that make it crucial for businesses:

  1. Data observability has a great role to play in improving the quality of data. Did you know that bad data costs organizations in the US around $3 trillion annually? Now, that is huge, and you won't want that for your organization.
  2. Practicing data observability lets you address any concern related to data in the early stage itself. This way, you can save your organization from taking any misinformed decision based on wrong data.
  3. Data observability can easily help you fix issues in complex data scenarios. You can understand situations and their impact on your business. Root cause analyses help you reduce the chances of data downtime.
  4. Data observability is also great for cost-effectiveness. You can eliminate redundant data and misconfiguration for better resource utilization.

What Is Open-Source Data Observability?

Open-source data observability tools come with all the features that you need to monitor, analyze, and maintain the quality and performance of the data you have. These tools can also be integrated with other tools and can create tailored data quality rules.

And the extensive community of developers make it great for beginners.

Here's a list of the common open-source tools used for data observability:

  • Great Expectations: Great Expectations is an open-source data validation tool that focuses on data testing, validation and documentation. The tool is packed with pre-defined tests and supports custom tests to check data systems on a regular frequency. Due to its community-driven approach, it's continuously evolving. Supports Python and SQL language.
  • Soda: Supports data quality, schema drift and also custom tests. The support for YAML makes it easier to define the tests. Data can be validated at multiple points in your CI/CD and data pipelines to prevent downstream data quality issues, ensuring that your colleagues have data products they can trust.
  • Elementary Data: Elementary Data is an open-source data observability tool designed to provide comprehensive visibility into data pipelines and infrastructure. With features like real-time monitoring, anomaly detection, and customizable dashboards, users can ensure data quality, reliability, and compliance effortlessly.
  • OpenTelemetry: This tool helps in implementing the data collection, processing, and publishing processes vendor-independently. This means you don't need to support and maintain various observability data formats, such as Jaeger and Prometheus.
  • ELK Stack (Elasticsearch, Logstash, Kibana): This is a combination of open-source tools for centralized logging and log analysis. Elasticsearch is used for indexing and searching log data, Logstash for log ingestion and processing, and Kibana for visualization and analysis.

Pros and Cons of Open-Source Data Observability

Let's make it easy for you to understand open-source data observability better by delving into its pros and cons.

Pros

Cost-effectiveness: Open source solutions are typically free to use, which can significantly reduce the overall cost of implementing and maintaining data observability capabilities compared to proprietary solutions. And you can instead allocate your budgets toward other critical areas.

Flexibility and customization: Open-source software allows you to customize and extend the data observability stack according to specific requirements and use cases. You get full access to the source code to tailor the solution to your unique needs.

Community support and collaboration: Open source projects often have active communities of developers, users, and contributors who share knowledge, provide support, and collaborate on improving the software. This community-driven approach fosters innovation, rapid development, and continuous improvement of open-source data observability tools.

Transparency and security: The transparency of open-source software allows you to inspect the source code for security vulnerabilities, ensuring greater trust and confidence in the security of the data observability solution. You can also identify and address bugs and security flaws more quickly through community scrutiny.

Reduced vendor lock-in: Open-source solutions mitigate the risk of vendor lock-in since you have access to the source code and can switch vendors or platforms more easily. This freedom helps you maintain control over your data observability infrastructure and avoid dependence on a single vendor.

Cons

There are certain limitations of open-source data observability. Let's have a look:

Complexity and expertise: Implementing and managing open-source data observability solutions may need significant technical expertise and resources. You need skilled personnel who are proficient in deploying, configuring, and maintaining the various components of the observability stack.

Support and documentation: While open-source data observability frameworks often have extensive documentation and community support, organizations may encounter challenges in finding timely and reliable assistance for troubleshooting issues or addressing complex deployment scenarios. Paid support options are available but may incur additional costs.

Integration and compatibility: Integrating multiple open-source tools and components to build a comprehensive data observability solution can be complex and time-consuming. Ensuring compatibility and interoperability between different software versions and dependencies may require careful planning and testing.

Responsibility for maintenance and updates: Organizations are responsible for managing the maintenance, updates, and patches of their open-source data observability infrastructure. You need proactive monitoring and management to keep the software up-to-date with the latest security patches and feature enhancements.

Decube-Managed Data Observability

Decube is an innovative data observability platform meant to seamlessly integrate with an organization's ecosystems. Decube’s data observability is a practice to monitor and analyse the performance of the data and its health within an organization's infrastructure. Unlike open-source data observability, Decube is completely managed and secured with industry certification. It’s the only platform that brings data observability along with data contracts and data catalog features.

Key characteristics of Decube-managed data observability include

Discoverability (Data Catalog): Decube facilitates understanding of data location and format, with real-time change logging. This expands accessibility and knowledge of data systems, enabling effective and informed operations.

Domain Ownership (Data Mesh): Decube can allocate crucial data ownership to key stakeholders driving business objectives that, in return, promote accountable data management aligned with strategic business goals.

Data Reliability (Data Observability): With Decube, you can implement continuous monitoring through the Five Pillars of Data Observability: freshness, distribution, volume, schema, and lineage. Decube also ensures superior data quality, safeguarding operations from risks associated with low-quality data.

Governance: Decube offers controlled data access based on roles, ensuring regulatory compliance and sensitive information protection. It also secures critical data, upholding ethical and legal usage organization-wide, including masking of PII and other critical data elements.

Data Catalog (Enhanced with Column Lineage and Approval Flow): Decube documents all data assets with enhanced column lineage and an embedded approval flow for accurate verification and cataloging. It further improves traceability of data transformations and approvals, ensuring all stakeholders access reliable and approved data insights.

Comprehensive platform: Decube offers integrated platforms or services that encompass various data observability capabilities, including monitoring, logging, tracing, alerting, and analytics. These platforms provide a centralized interface for monitoring various data-related metrics, events, and logs.

Managed services: Decube manages the underlying infrastructure, software deployment, configuration, maintenance, and updates, relieving you of the burden of managing these tasks internally. Managed services ensure that the data observability platform remains up-to-date and secure without requiring significant internal resources.

Security and Compliance: Decube is ISO27001 and SOC2 certified, and it’s focused on protecting the organization's data assets and ensuring regulatory compliance.

Limitation of Decube-Managed Data Observability

Getting a managed solution like Decube comes with its own cost, and it’s definitely not cheaper. If your company deals with fewer (‘00) tables, then we recommend going for manual or open-source tools.

Some large companies, like Netflix and Airbnb, with extraordinarily large data sizes and custom tooling, may opt for a home-grown solution that meets their requirements.

Companies with a decent amount of data should go with managed solutions since the cost of the tool will justify the investment.

The savings are definitely witnessed by the amount of time the data engineering team saves and the productivity of reduced errors during the data pipeline.

Final Thoughts

Choosing between open-source data observability and vendor-managed data observability depends entirely upon your business needs and requirements. While open-source tools are mostly free to use, vendor-managed data observability gives you the liberty to fully utilize the expertise of third parties to make the most out of your data.

When choosing open-source data observability tools and practices for your business, you can enhance your data management processes, improve decision-making, and boost a culture of accountability and trust.

However, also understand the complexities involved, including privacy concerns, data security issues, and the need for robust governance frameworks.

And if you'd like an expert's help, get in touch with Decube.

What is a Data Trust Platform in financial services?
A Data Trust Platform is a unified framework that combines data observability, governance, lineage, and cataloging to ensure financial institutions have accurate, secure, and compliant data. In banking, it enables faster regulatory reporting, safer AI adoption, and new revenue opportunities from data products and APIs.
Why do AI initiatives fail in Latin American banks and fintechs?
Most AI initiatives in LATAM fail due to poor data quality, fragmented architectures, and lack of governance. When AI models are fed stale or incomplete data, predictions become inaccurate and untrustworthy. Establishing a Data Trust Strategy ensures models receive fresh, auditable, and high-quality data, significantly reducing failure rates.
What are the biggest data challenges for financial institutions in LATAM?
Key challenges include: Data silos and fragmentation across legacy and cloud systems. Stale and inconsistent data, leading to poor decision-making. Complex compliance requirements from regulators like CNBV, BCB, and SFC. Security and privacy risks in rapidly digitizing markets. AI adoption bottlenecks due to ungoverned data pipelines.
How can banks and fintechs monetize trusted data?
Once data is governed and AI-ready, institutions can: Reduce OPEX with predictive intelligence. Offer hyper-personalized products like ESG loans or SME financing. Launch data-as-a-product (DaaP) initiatives with anonymized, compliant data. Build API-driven ecosystems with partners and B2B customers.
What is data dictionary example?
A data dictionary is a centralized repository that provides detailed information about the data within an organization. It defines each data element—such as tables, columns, fields, metrics, and relationships—along with its meaning, format, source, and usage rules. Think of it as the “glossary” of your data landscape. By documenting metadata in a structured way, a data dictionary helps ensure consistency, reduces misinterpretation, and improves collaboration between business and technical teams. For example, when multiple teams use the term “customer ID”, the dictionary clarifies exactly how it is defined, where it is stored, and how it should be used. Modern platforms like Decube extend the concept of a data dictionary by connecting it directly with lineage, quality checks, and governance—so it’s not just documentation, but an active part of ensuring data trust across the enterprise.
What is an MCP Server?
An MCP Server stands for Model Context Protocol Server—a lightweight service that securely exposes tools, data, or functionality to AI systems (MCP clients) via a standardized protocol. It enables LLMs and agents to access external resources (like files, tools, or APIs) without custom integration for each one. Think of it as the “USB-C port for AI integrations.”
How does MCP architecture work?
The MCP architecture operates under a client-server model: MCP Host: The AI application (e.g., Claude Desktop or VS Code). MCP Client: Connects the host to the MCP Server. MCP Server: Exposes context or tools (e.g., file browsing, database access). These components communicate over JSON‑RPC (via stdio or HTTP), facilitating discovery, execution, and contextual handoffs.
Why does the MCP Server matter in AI workflows?
MCP simplifies access to data and tools, enabling modular, interoperable, and scalable AI systems. It eliminates repetitive, brittle integrations and accelerates tool interoperability.
How is MCP different from Retrieval-Augmented Generation (RAG)?
Unlike RAG—which retrieves documents for LLM consumption—MCP enables live, interactive tool execution and context exchange between agents and external systems. It’s more dynamic, bidirectional, and context-aware.
What is a data dictionary?
A data dictionary is a centralized repository that provides detailed information about the data within an organization. It defines each data element—such as tables, columns, fields, metrics, and relationships—along with its meaning, format, source, and usage rules. Think of it as the “glossary” of your data landscape. By documenting metadata in a structured way, a data dictionary helps ensure consistency, reduces misinterpretation, and improves collaboration between business and technical teams. For example, when multiple teams use the term “customer ID”, the dictionary clarifies exactly how it is defined, where it is stored, and how it should be used. Modern platforms like Decube extend the concept of a data dictionary by connecting it directly with lineage, quality checks, and governance—so it’s not just documentation, but an active part of ensuring data trust across the enterprise.
What is the purpose of a data dictionary?
The primary purpose of a data dictionary is to help data teams understand and use data assets effectively. It provides a centralized repository of information about the data, including its meaning, origins, usage, and format, which helps in planning, controlling, and evaluating the collection, storage, and use of data.
What are some best practices for data dictionary management?
Best practices for data dictionary management include assigning ownership of the document, involving key stakeholders in defining and documenting terms and definitions, encouraging collaboration and communication among team members, and regularly reviewing and updating the data dictionary to reflect any changes in data elements or relationships.
How does a business glossary differ from a data dictionary?
A business glossary covers business terminology and concepts for an entire organization, ensuring consistency in business terms and definitions. It is a prerequisite for data governance and should be established before building a data dictionary. While a data dictionary focuses on technical metadata and data objects, a business glossary provides a common vocabulary for discussing data.
What is the difference between a data catalog and a data dictionary?
While a data catalog focuses on indexing, inventorying, and classifying data assets across multiple sources, a data dictionary provides specific details about data elements within those assets. Data catalogs often integrate data dictionaries to provide rich context and offer features like data lineage, data observability, and collaboration.
What challenges do organizations face in implementing data governance?
Common challenges include resistance from business teams, lack of clear ownership, siloed systems, and tool fragmentation. Many organizations also struggle to balance strict governance with data democratization. The right approach involves embedding governance into workflows and using platforms that unify governance, observability, and catalog capabilities.
How does data governance impact AI and machine learning projects?
AI and ML rely on high-quality, unbiased, and compliant data. Poorly governed data leads to unreliable predictions and regulatory risks. A governance framework ensures that data feeding AI models is trustworthy, well-documented, and traceable. This increases confidence in AI outputs and makes enterprises audit-ready when regulations apply.
What is data governance and why is it important?
Data governance is the framework of policies, ownership, and controls that ensure data is accurate, secure, and compliant. It assigns accountability to data owners, enforces standards, and ensures consistency across the organization. Strong governance not only reduces compliance risks but also builds trust in data for AI and analytics initiatives.
What is the difference between a data catalog and metadata management?
A data catalog is a user-facing tool that provides a searchable inventory of data assets, enriched with business context such as ownership, lineage, and quality. It’s designed to help users easily discover, understand, and trust data across the organization. Metadata management, on the other hand, is the broader discipline of collecting, storing, and maintaining metadata (technical, business, and operational). It involves defining standards, policies, and processes for metadata to ensure consistency and governance. In short, metadata management is the foundation—it structures and governs metadata—while a data catalog is the application layer that makes this metadata accessible and actionable for business and technical users.
What features should you look for in a modern data catalog?
A strong catalog includes metadata harvesting, search and discovery, lineage visualization, business glossary integration, access controls, and collaboration features like data ratings or comments. More advanced catalogs integrate with observability platforms, enabling teams to not only find data but also understand its quality and reliability.
Why do businesses need a data catalog?
Without a catalog, employees often struggle to find the right datasets or waste time duplicating efforts. A data catalog solves this by centralizing metadata, providing business context, and improving collaboration. It enhances productivity, accelerates analytics projects, reduces compliance risks, and enables data democratization across teams.
What is a data catalog and how does it work?
A data catalog is a centralized inventory that organizes metadata about data assets, making them searchable and easy to understand. It typically extracts metadata automatically from various sources like databases, warehouses, and BI tools. Users can then discover datasets, understand their lineage, and see how they’re used across the organization.
What are the key features of a data observability platform?
Modern platforms include anomaly detection, schema and freshness monitoring, end-to-end lineage visualization, and alerting systems. Some also integrate with business glossaries, support SLA monitoring, and automate root cause analysis. Together, these features provide a holistic view of both technical data pipelines and business data quality.
How is data observability different from data monitoring?
Monitoring typically tracks system metrics (like CPU usage or uptime), whereas observability provides deep visibility into how data behaves across systems. Observability answers not only “is something wrong?” but also “why did it go wrong?” and “how does it impact downstream consumers?” This makes it a foundational practice for building AI-ready, trustworthy data systems.
What are the key pillars of Data Observability?
The five common pillars include: Freshness, Volume, Schema, Lineage, and Quality. Together, they provide a 360° view of how data flows and where issues might occur.
What is Data Observability and why is it important?
Data observability is the practice of continuously monitoring, tracking, and understanding the health of your data systems. It goes beyond simple monitoring by giving visibility into data freshness, schema changes, anomalies, and lineage. This helps organizations quickly detect and resolve issues before they impact analytics or AI models. For enterprises, data observability builds trust in data pipelines, ensuring decisions are made with reliable and accurate information.

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