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Cloud-native observability refers to the ability to monitor, analyze, and troubleshoot distributed cloud-native applications and services in real-time, leveraging telemetry data, logs, metrics, and traces to gain insights into application performance, reliability, and user experience. It is important in cloud computing to ensure visibility, control, and optimization of cloud resources and workloads, enabling proactive monitoring, root cause analysis, and performance tuning for maintaining service availability, responsiveness, and scalability in cloud environments.