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Log monitors are a type of software that monitor log files. Servers, application, network and security devices generate log files. Errors, problems, and more information is constantly logged and saved for analysis. In order to detect problems automatically, system administrators and operations set up monitors on the generated logs. The log monitors scan the log files and search for known text patterns and rules that indicate on important events. Once an event is detected, the monitoring system will send alert, either to a person or to another software/hardware system.
Source of the article : Wikipedia
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