Node.js was initially challenging to use in production due to memory leaks and lack of debugging tools. Over three years, Joyent developed tools like DTrace probes, MDB for debugging core dumps, Bunyan for logging, and node-restify for building HTTP services to make node.js more reliable and observable in production. These tools helped Joyent successfully deploy many internal services using node.js and identify issues through postmortem analysis. Joyent continues working to improve node.js for production use.