Snowflake plans to acquire observe to deliver artificial intelligence-powered observability that is built on open standards and designed for the requirements of AI-driven enterprises.
The companies signed a definitive agreement for the acquisition on Thursday, January 8, though the closing of the transaction is subject to customary closing conditions, according to a press release.
Once finalized, Observe’s observability platform will integrate with Snowflake’s AI Data Cloud, potentially resolving production issues up to 10 times faster than current reactive monitoring methods, the release stated.
The combined offering will provide enterprises with agentic AI for quicker troubleshooting, an open-standard architecture designed for scalability, and efficient telemetry data retention, per the release.
Did you know? – Observability differs from traditional monitoring by focusing on understanding why things happen,not just that they happened. It uses telemetry data like logs, metrics, and traces.
“As our customers build increasingly complex AI agents and data applications, reliability is no longer just an IT metric – it’s a business imperative,” said Snowflake CEO sridhar Ramaswamy in the release. “By bringing Observe’s capabilities directly into the Snowflake AI Data Cloud, we are empowering our customers to manage enterprise-wide observability across terabytes to petabytes of telemetry with an open, scalable architecture and AI-powered troubleshooting workflows.”
Observe CEO Jeremy Burton said in the release that combining the two companies represents a natural extension of Snowflake’s AI Data Cloud, accelerating Observe’s observability solution at enterprise scale and addressing the challenges of operating complex systems in production.
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“By combining our AI-powered SRE [Site Reliability Engineer] with Snowflake’s AI Data Cloud, we can deliver faster insights, greater reliability and dramatically better economics,” Burton said. “Together, we’ll help enterprises run the next generation of AI applications and agents with confidence.”
Pro tip – Telemetry data volume grows exponentially with AI applications. Scalable data storage and processing,like Snowflake provides,are crucial for effective observability.
Discussions regarding the acquisition were reported in December.
In June, Snowflake announced its acquisition of Crunchy data to bolster its ability to help enterprises build and deploy AI agents and applications. The company stated that the acquisition would integrate Crunchy Data’s open-source Postgres technology and products into Snowflake’s AI Data Cloud, enabling PostgreSQL users to ship faster and operate more efficiently.
Reader question – How will this acquisition impact existing Observe customers? What steps will be taken to ensure a smooth transition? Share your thoughts!
