CloudWatch supports the monitoring of many AWS services, such as EC2 instances, DynamoDB, and Relational Database Service (RDS). You can also generate custom metrics and log files using your own applications and associate them with CloudWatch. Amazon services, such as Auto Scaling, use CloudWatch alarms to automatically scale an environment up or down based on the traffic in an environment.
CloudWatch provides a number of graphs and statistics. It gives your system broad insights into how resources are utilized and how to monitor application performance, and tracks the overall operational health of respective applications in an environment. All this infrastructure and application telemetry data can be used to ensure the smooth functioning of your environment.