We have several application servers, and a central monitoring server.
We are currently running ssh with \"tail -f\" from the monitoring server to stream several text
The paramiko module supports connecting with via ssh with python.
http://www.lag.net/paramiko/
The pysftp has some examples of using it and the execute command method might be what your looking for. It will create a file like object of the command you execute. I can't say if it gives you live data though.
http://code.google.com/p/pysftp/