It's impossible to think about innovation without quoting Henry Ford (even if it's a bit overused):
If I had asked people what they wanted, they would have said faster horses.
The new AI-agent workforce exposes a critical friction point: the very cloud infrastructure underpinning the digital world was not built with them in mind. Today's cloud platforms – their services, interfaces, and core assumptions – were fundamentally designed for human operators, developers, and end-users. This human-centric legacy, optimized for human interaction and patterns, creates inherent inefficiencies and limitations when confronted with the unique requirements of autonomous AI agents. Once you start building some of these agents you realize this is an inherent bottleneck and most certainly a hindrance to these powerful new digital actors.
We need more than incremental updates or added features. Bolt-on AI services on top of the old "horse" isn't the way. We need a paradigm shift towards an "agent-native cloud" – an infrastructure reimagined and rebuilt from the ground up with AI agents as the primary persona, the key user.
Today's Cloud Fails AI Agents: Back to First Principles
To understand why current cloud infrastructure falls short, let's revisit the foundational purposes of its core components and see how they serve – or fail to serve – AI agents (arguably, they fail humans too but that's an article for another day).
Human-Centric Legacy: Designed for Eyeballs and Fingers
Cloud platforms and their services, from monitoring and logging to compute and storage interfaces, were architected under the assumption that humans are the primary interactors. Observability, traditionally, focuses on enabling humans to infer a system's internal state by examining its external outputs like logs, metrics, and traces. Consequently, interfaces are dominated by UIs with all sorts of paradigms, complex query languages designed for human understanding, and visually rich dashboards intended for manual investigation and at-a-glance understanding (how many times have you read "At a glance" on a product page?).
Visual interfaces are important for human-computer interaction, but can become an impediment for AI agents. Agents operate programmatically while still able to act undeterministically; they don't "see" or interact with GUIs in the way humans do (or at least they don't have to). When forced to interact with systems designed primarily for visual consumption, this isn't merely an inconvenience that can cause errors; it's a fundamental architectural mismatch that adds unnecessary complexity and hinders agent performance (some sales guy is loving all the tokens you burn doing this though!).
Some examples are in order:
Rethink Logging
Logging exists to record system events, providing a historical record for debugging issues, performing audits, and understanding system behavior after the fact. For human operators, this translates into needs like searchable text logs, query languages (often weird proprietary DSLs too), visualizations like graphs to spot trends, and interfaces like infinitely scrolling tables for deep dives during manual investigations. Many logging platforms focus on aggregating vast amounts of log data specifically for human analysis and troubleshooting.
AI agents, however, have different requirements. Contrary to conventional wisdom, the LLMs powering agents excel at processing unstructured text - often better than humans. Their advantage lies not in just requiring structured formats, but in their ability to rapidly consume vast amounts of unstructured logs, correlate disparate error messages across system components, and derive insights without the manual filtering humans require when using dashboards and UIs. Where humans would need to explicitly query relationships between different parts of a system, agents can effortlessly connect related events across distributed services. Agent-centric logging should leverage this strength while still capturing not just system-level events but also the agent's own internal state and process: its decision-making path, the context it utilized, interactions with external tools or APIs, and potentially even its confidence scores or intermediate reasoning steps. Furthermore, the sheer volume, velocity, and variety of data generated by complex agent interactions can easily overwhelm traditional logging systems designed for less dynamic workloads. Critically, agents may need access to these logs not just for external debugging by humans, but for their own learning, adaptation, and performance improvement cycles.
To sum it up: Current logging platforms focus on improving the human experience – providing better UIs, faster search capabilities, or even using AI to assist humans in sifting through log data. They don't fundamentally restructure the log data or its purpose for direct, efficient consumption and action by autonomous agents.
It's about understanding Agents
Observability, at its core, aims to provide an understanding of a system's internal state and behavior by analyzing its outputs – typically logs, metrics, and traces. For human-centric systems, this often involves dashboards displaying Key Performance Indicators (KPIs), alerting systems triggered by predefined threshold, and distributed tracing tools that allow engineers to follow a user request as it propagates through known application services and infrastructure components. The focus is heavily weighted towards Application Performance Monitoring (APM) and infrastructure health and how a human can debug the system piece by piece.
AI agents introduce a new layer of complexity that challenges these traditional observability paradigms. Agent behavior is often non-deterministic; small changes in input or context can lead to significantly different outcomes. They exhibit emergent behaviors, engage in dynamic 'chain-of-thought' reasoning, and interact with a diverse set of tools and APIs, sometimes leading to unexpected loops or actions. Effective agent observability must grapple with these characteristics. It requires tracing capabilities that can reliably propagate context across distributed systems, including external APIs, databases, and most importantly AI agents – a capability often lacking or incomplete in current tools.
Furthermore, the critical metrics change. Beyond standard system health KPIs (CPU, latency, error rates, etc), agent observability must track AI-specific concerns: model performance (accuracy, precision, prompt evolution), concept and data drift, data quality issues, potential biases, and explainability of decisions. It needs to monitor the agent's interactions with its tools, the context window utilized during generation, the associated computational costs, and potential security or compliance risks like Personally Identifiable Information (PII) leaks or agent misuse. Evaluating agents might also require tracking fairness metrics and goal alignment alongside traditional performance indicators. The sheer volume and complexity of this telemetry data also pose significant challenges for existing platforms.
This highlights a necessary progression in the very purpose of observability for agentic systems. Traditional approaches focus on answering "What happened?" – identifying system failures, performance bottlenecks, or errors. Even in our own, human-centric part of the product right now this is true - it's focused on helping a human find the answer to that question. For AI agents, observability needs to shift a more fundamental question: "Why did my fellow agent do that?" Because agents are goal-driven, autonomous decision-makers whose behavior can be non-deterministic and emergent, simply monitoring system outputs or tracing execution paths is insufficient. Understanding success or failure requires visibility into the agent's reasoning process, the data and context it used, its interactions with tools, and its alignment with its intended goals.
Dashboards are Dead (for Agents)
Dashboards exist for one primary reason: to provide humans with a quick, summary of key metrics and system status. They rely on charts, graphs, gauges, and status indicators optimized for human visual processing and rapid comprehension.
AI agents don't need traditional dashboards, but not because they can't process the information. In fact, LLMs powering agents excel at understanding and contextualizing dashboard-like information. Their advantage is that they can simultaneously process and correlate much more information than a human could view on a single dashboard. Also, the issue isn't that agents can't interpret visual representations converted to text - it's that dashboards are deliberately simplified for human cognitive limitations that agents don't necessarily share. Agents can directly consume and process much of the underlying data, identify patterns across disparate systems, and derive insights without the visual intermediary designed for human limitations.
Bolt-Ons Won't Cut It
The gap between the needs of AI agents and the capabilities of current cloud infrastructure isn't likely to be bridged effectively by existing market leaders. Major cloud providers face significant hurdles, rooted in their existing success and the classic "innovator's dilemma."
The Innovator's Dilemma in the Age of AI
Harvard professor Clayton Christensen's seminal work described how successful, well-managed companies can fail precisely because they listen attentively to their existing customers and invest diligently in innovations that improve their current products for their largest markets (sustaining innovations). This rational focus on existing revenue streams and customer demands makes them vulnerable to disruptive technologies – innovations that initially appear inferior, serve smaller or niche markets, and offer lower profit margins, but eventually improve rapidly to capture the mainstream market. Agentic AI, with its potential to fundamentally change how software is built, managed, and interacted with, represents exactly this kind of disruptive force.
The Cloud Giants' Challenge (AWS, Azure, GCP)
Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) possess immense resources and offer a wide array of AI, LLM, and machine learning services. However, their primary business imperative is to serve their existing customer base, which overwhelmingly consists of human operators and applications designed for human interaction. Their incentive structure strongly favors evolving their existing services incrementally (sustaining innovation) rather than undertaking the costly and risky endeavor of rebuilding core infrastructure components from the ground up to cater specifically to the nascent, albeit rapidly growing, AI agent market (disruptive innovation).
Ironically, their massive scale can become a disadvantage in this context. They typically need to develop solutions that can operate reliably for millions of diverse customers from day one, which significantly slows down the iterative development process required to understand and address the nuanced needs of AI agents - it certainly is apparent to me that their new LLM and agent offerings are suffering from this! Startups, conversely, can focus on narrower verticals and iterate much faster. Furthermore, the traditional integration advantage held by incumbents – where everyone already connects to their platform – may even flip. Startups building agent-native solutions have strong incentives to integrate broadly with existing ecosystems, while incumbents may be slower to adapt their integration strategies. Just look at how many agent frameworks are popping up everywhere and how few of them actually provide any kind of cross-platform support, outside the company's own walled garden. Or consider the rise of Cursor, Anthropic's MCP protocol and adoption vs. the lack of leadership from the incumbents in this space. Does anyone care when Github releases a new AI feature in Copilot anymore? Cursor sucks the air out of the room every time.
The Failure of "Bolt-On" Strategies
Faced with the rise of AI agents, the natural tendency for incumbents is to pursue "bolt-on" strategies: adding new features or modules for agents onto their existing, human-centric platforms without fundamentally altering the underlying architecture or assumptions.
These approaches are ultimately insufficient because they fail to address the core architectural mismatch. Adding an "agent trace view" doesn't fix underlying problems with broken context propagation across disparate systems , nor does it introduce the necessary mechanisms for collecting agent-specific metrics like model drift or reasoning quality or the need for prompt evolution. The same goes with data and agent context and memory - i.e. "Agents need memory, let's tack on our proprietary no-sql db and call it MEMORY". Such bolt-on solutions often lead to a fragmented and complex toolchain, requiring users to manually stitch together insights from multiple systems - it certainly doesn't make it easier on both humans and agents.
"AI washing" is a thing: Incumbents prominently feature "AI-powered" capabilities, such as automated anomaly detection or AI-assisted log analysis , to signal that they are adapting to the new landscape. However, these features frequently automate tasks that humans previously performed within the existing human-centric paradigm. While potentially useful for human operators, this masks the lack of fundamental architectural change required to truly empower autonomous agents as first-class citizens of the cloud. It sustains the old model rather than enabling (or creating) the new one. It certainly isn't marching towards a truly agent-native future.
What AI Agents Really Need from Their Cloud
To unlock the true potential of AI agents, the cloud must evolve to an environment where agents can effectively perceive, reason, decide, and act. This requires a distinct set of technical, product, and experiential considerations.
Agent-First Design
Every component, from the lowest-level infrastructure to the highest-level services, is conceived and engineered with the AI agent as the primary consumer and operator.
Built-in Agent Observability
Comprehensive, integrated capabilities for tracking agent behavior, reasoning agent behavior, reasoning processes, model performance, data interactions, security posture, and costs are core features, not optional add-ons - but again, for other agents to reason about the observed agent and take action.
Agents as the Control Plane for the Control Plane
Robust, well-defined agent communication layers serve as the primary, and potentially exclusive, mechanism for interaction, configuration, and management of the cloud environment by agents.
Automated Management & Governance
The platform is designed to facilitate agent self-management where appropriate and enable automated systems to enforce governance policies regarding resource usage, security permissions, and operational constraints.
Environment for Action & Learning
The cloud provides the necessary signals, feedback loops, prompt evolution, self-healing, structured data, and tools to serve as an effective environment within which agents can perceive their surroundings, make informed decisions, execute actions reliably, and potentially learn or adapt over time.
Agentuity: The agent-native cloud
We view Agentuity as pioneering the development of the world's first agent-native cloud. Agentuity is not merely adapting existing technologies but is defining a new category of cloud infrastructure, built from the ground up based on the agent-native principles outlined above.
The philosophy is simple: build the cloud for the agents that will increasingly inhabit and operate it. By providing an environment designed specifically for their needs – with machine-first interfaces, integrated agent-aware observability, and automated governance – Agentuity aims to eliminate the friction inherent in today's systems. Purpose-built infrastructure for agents is an idea, we believe, is poised to unlock new levels of agent efficiency, enable the development of more sophisticated and reliable agentic applications, and ultimately accelerate the transition to an agent-driven digital world.
The transition to an agent-driven digital world requires a corresponding evolution in its foundational infrastructure. The era of the agent-native cloud is beginning. To explore this concept further and understand how Agentuity is shaping this future, follow us - get in touch - join the community.