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You are correct in your understanding. CloudWatch Cross-Account Observability is designed to share metrics, logs, and traces between source accounts and monitoring accounts, but it does not centrally collect or display alarm resources themselves from the linked accounts.
However, you can create alarms in your monitoring account that watch metrics from your source accounts. This means you would need to recreate or define alarms in the central monitoring account based on the metrics being shared from your 88 tenant accounts, rather than viewing the existing alarms configured in those source accounts.
For your specific use case of collecting an inventory of existing CloudWatch alarms across all tenant accounts for governance and audit purposes, Cross-Account Observability alone will not provide this capability. You would need to implement an alternative approach to gather this alarm inventory.
While the sources provided don't detail specific methods for centralized alarm inventory collection, the Cross-Account Observability feature focuses on enabling you to monitor and create alarms in the monitoring account based on shared telemetry data, rather than aggregating existing alarm configurations from source accounts.
For building a centralized alarm inventory across your 88 accounts, you would need to look beyond Cross-Account Observability to other AWS services or custom solutions that can programmatically collect alarm configurations from multiple accounts, though specific recommendations for those approaches are not covered in the available documentation about Cross-Account Observability.
Sources
Monitor across accounts and Regions - Amazon CloudWatch
Using Amazon CloudWatch dashboards - Amazon CloudWatch
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