New Relic named Magic Quadrant Leader for observability

Gartner has named New Relic a Leader in its 2025 Magic Quadrant for Observability Platforms for the 13th consecutive year.

The Gartner Magic Quadrant evaluates technology vendors using criteria such as current product capabilities, market understanding, responsiveness, innovation, and strategy. The 2025 report included 20 vendors in the observability space, compared to just 14 in 2014, reflecting the growing importance and expansion of observability solutions in enterprise technology.

This year's recognition acknowledges New Relic for what Gartner describes as vision and execution in the field of observability. Ashan Willy, Chief Executive Officer of New Relic, commented on the achievement:

"New Relic's consistent recognition as a Leader across all 13 iterations of the Gartner Magic Quadrant for Observability Platforms since 2012 speaks volumes for us. In our view, this report validates our vision for AI and agentic orchestration, echoing what we hear from customers - when their most critical projects demand performance and reliability, they trust New Relic. Our continued investment in innovating our intelligent observability platform has been thoughtfully designed to anticipate and meet the needs of modern enterprises."

The observability market has seen increased competition and investment. Gartner's latest Magic Quadrant now assesses 20 vendors, a marked increase over the previous decade, as cloud providers, software vendors and investors continue to allocate significant resources towards what they view as foundational technology for Artificial Intelligence infrastructure.

New Relic's approach to observability is centred on integrating AI-powered features directly into workflows and tools commonly used by its customers. Over the past year, the company has introduced more than 25 new capabilities to its platform, including AI integrations with ServiceNow, GitHub Copilot, and Amazon Q Business. Among the latest additions is an integration with GitHub Copilot's coding agent, which aims to enhance software development processes by improving the detection and resolution of code issues through proactive monitoring.

Luke Hoban, Vice President Engineering, Developer AI at Microsoft, shared his perspective on New Relic's role in enabling advanced software workflows:

"I see partners like New Relic as being a core part of how we're going to enable these coding agents, and other agents on the platform, to really realize the full potential they have."

Within its unified platform, New Relic has embedded AI Monitoring, which provides detailed visibility across the technology stack for generative AI applications built with enterprise-level large language models such as DeepSeek. Adoption of New Relic AI Monitoring has increased by 30% quarter over quarter, according to internal data reported in the company's AI Unwrapped: 2025 AI Impact Report. In addition, the platform now supports the Model Context Protocol (MCP), which offers developers actionable insights to identify and address issues in AI-based applications.

New Relic continues to adapt its observability solutions for specific industries including retail, healthcare, and media, introducing what it describes as the first intelligent streaming video observability solution. The company's platform is delivered via a usage-based pricing model, aligning costs with value delivered, and maintains support for open standards, including native integration with OpenTelemetry (OTel). This allows customers to integrate data from multiple sources while taking advantage of the platform's analytics and AI-led recommendations.

Among its recent product releases, New Relic has introduced a Predictions engine designed to anticipate issues before they arise, supporting improved system performance and uptime. The company has also enhanced cost-optimisation features, such as Cloud Cost Intelligence, offering users greater transparency and control over multi-cloud costs and operational impact.

New Relic's customer base includes over 85,000 organisations reportedly relying on its observability capabilities. The platform received an overall rating of 4.5 out of 5.0 stars based on 1,392 verified reviews as of July 2025. According to Gartner Peer InsightsTM, 90% of surveyed customers indicated a willingness to recommend New Relic, and 64% provided a 5-star rating for observability.

User feedback collected on the Peer Insights platform includes comments such as:

"That's the best monitoring out there! Currently there are no other tools as complete as New Relic!" – DevOps Engineer, Banking

"Great monitoring tool - would never look anywhere else...Great overall experience, love logging in everyday to see what our application is doing or has been doing, checking API logs, checking systems and containers and making sure we find out about problems before our users...it is super easy to integrate with, super easy to navigate and manage. The UI is fantastic, the performance is great." – Group Product Manager, IT Services

"My experience with support was good. The tool has a friendly interface and is easy to use." – IT Infrastructure Analyst, Manufacturing