The acquisition will expand Snowflake’s capabilities in a $50+ billion IT operations management software market1, positioning it to deliver next generation AI-powered observability based on open standards
Snowflake, the AI Data Cloud company, announced it has signed a definitive agreement to acquire Observe, a leader in AI-powered observability. With this acquisition, Snowflake will deliver the next generation of AI-powered observability, built on open standards and designed for the scale, complexity, and economics required by modern AI-driven enterprises.
“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 Sridhar Ramaswamy, CEO, Snowflake. “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.”
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From its inception, Observe was built on Snowflake and together, Snowflake and Observe will provide enterprises with:
- Agentic AI for faster troubleshooting: The combination of Observe’s AI-powered Site Reliability Engineer (SRE) with trusted data in Snowflake enables a shift from reactive monitoring to proactive, automated troubleshooting. Observe’s AI SRE leverages a unified context graph that correlates logs, metrics, and traces, allowing teams to detect anomalies earlier, identify root causes faster, and resolve production issues up to ten times faster, improving operational resilience as systems grow more distributed, dynamic, and autonomous.
- An open-standard architecture built for scale: The acquisition also establishes a unified, open-standard observability architecture based on Apache Iceberg and OpenTelemetry, standards which Snowflake has continuously contributed to. This approach allows enterprises to manage massive telemetry volumes using economical object storage, elastic compute, and interoperable standards, an essential foundation for operating next generation AI agents and applications at scale. By treating telemetry as first-class data within the Snowflake AI Data Cloud, enterprises can apply analytics and AI consistently across observability and business data, with greater flexibility, governance, and efficiency.
- Full telemetry data retention with efficient economics: As AI-driven applications generate unprecedented volumes of logs, metrics, and traces, enterprises have increasingly been forced to rely on sampling and short retention windows to manage cost. By unifying Observe’s AI-powered observability platform with Snowflake’s scalable and trusted data foundation, organizations can eliminate these tradeoffs and retain high-fidelity telemetry data, reducing observability cost substantially while improving visibility across their entire data estate.
“Observability is fundamentally a data problem, and Observe joining Snowflake is a natural extension of their AI Data Cloud, allowing us to accelerate our observability solution at true enterprise scale,” said Jeremy Burton, CEO, Observe. “As AI reshapes how applications are built, the bottleneck has shifted from writing code to operating and troubleshooting complex systems in production. Observe was built for this moment. By combining our AI-powered SRE with Snowflake’s AI Data Cloud, we can deliver faster insights, greater reliability, and dramatically better economics. Together, we’ll help enterprises run the next generation of AI applications and agents with confidence.”
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“Observability’s cost problem stems from treating telemetry as special-purpose data requiring specialized infrastructure. The industry is correcting this by bringing observability data into modern data platforms where it can leverage existing lakehouse economics and AI capabilities. Snowflake’s acquisition highlights a critical industry insight: the lines between data platforms and observability platforms are blurring,” said Sanjeev Mohan, Principal Analyst, SanjMo.
Upon the closing of this acquisition, Snowflake will deepen its commitment to helping customers build and operate reliable agents and applications. Observe’s developer-friendly approach complements Snowflake’s existing workload engines by providing teams with real-time enterprise context, faster root-cause analysis, and AI-assisted troubleshooting – critical components for operating dynamic, autonomous systems at scale. Snowflake will also expand its presence in a rapidly growing IT operations management software market. According to Gartner®, “The ITOM software market grew 9.0% in 2024 to reach $51.7B.”1
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Source – Businesswire
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