Grafana Cloud Application Observability is a cloud-based solution for monitoring applications and reducing mean time to resolution (MTTR). The platform natively supports both OpenTelemetry and Prometheus instrumentation formats, allowing organizations to collect and analyze application telemetry data alongside frontend and infrastructure metrics. The solution provides prebuilt dashboards and workflows including service inventory views for real-time performance tracking, dynamic service maps for visualizing service relationships, and service overview dashboards that display RED metrics (Rate, Errors, Duration) alongside dependencies and execution environment metadata. The platform includes automatic baselining capabilities for detecting performance anomalies and supports grouping and filtering data by attributes. Application Observability correlates multiple telemetry signals including metrics, logs, traces, and profiles using the OpenTelemetry data model and schema. Users can navigate between correlated data types to identify root causes while maintaining context. The platform stores data in Grafana Cloud's managed databases. The solution supports OpenTelemetry auto-instrumentation agents and SDKs for application instrumentation. Grafana Alloy provides native pipelines for both Prometheus and OpenTelemetry data collection. The platform includes metrics generation capabilities that derive metrics from trace data. Grafana Cloud Application Observability offers a free tier with 50GB traces, 10k metrics, 50GB logs, 14-day retention, and 3 active users. Commercial tiers include Pro (pay-as-you-go) and Enterprise (annual commit) options with varying support levels and deployment flexibility.