AWS CloudWatch provides observability and monitoring capabilities for AWS resources and applications. It collects metrics, logs, and events and enables users to create dashboards, alarms, and automate actions. Some key AWS services that integrate with CloudWatch include EC2, ELB, Lambda, Auto Scaling, and CloudTrail. CloudWatch collects metrics for things like CPU utilization, network traffic, request counts, and error rates to provide visibility into the performance and health of systems.