Centralized observability teams are crucial in modern organizations to manage the complexity and scale of telemetry data effectively, as highlighted by Suman Karumuri from Slack. These teams, which can go by various names like Shared Services or Platform Engineering, are responsible for maintaining infrastructure, ensuring standardization in data formats, and disseminating knowledge across engineering teams. Without centralized guidance, different teams might adopt divergent logging formats, complicating cross-team event correlation and potentially leading to duplicated efforts and multiple monitoring stacks. Observability is viewed as a data analytics problem, where understanding system behavior involves gathering and ingesting varied data types to answer critical questions. Furthermore, observability encompasses legal compliance issues, such as GDPR, by ensuring sensitive data is not exposed in logs. The right technical stack, whether ELK Stack, OpenSearch, or others, should be chosen based on an organization's specific needs, making observability not just a backend concern but a comprehensive approach covering business processes and user interactions.