As organizations increasingly adopt cloud-native applications, they encounter various complexities and observability challenges that are explored in the ESG Cloud-native Applications report. This report highlights the growing dominance of cloud-native technologies in IT as DevOps teams strive to enhance functionality, speed, and security in software delivery. Despite facing challenges such as application security, compliance, and inadequate monitoring, organizations recognize the significant advantages cloud-native applications offer, such as deployment efficiency, early issue resolution, and improved collaboration. The survey of 387 North American IT professionals reveals that many businesses host most of their production applications in cloud environments and plan to expand their use of cloud-native technologies. Application portability and hybrid cloud integration are crucial, as organizations aim for seamless operation across various platforms. The report underscores the importance of cross-team collaboration and external professional services to enhance cloud-native strategies, while solutions like the Dynatrace platform offer automated monitoring and security insights to address these challenges, supporting agile methodologies and frequent software releases.