Dive Brief:
- Snowflake is acquiring AI-powered observability platform Observe, expanding its footprint in the IT operations management software market and supporting the growing demand for reliability. Terms of the deal were not disclosed, but in July, Observe reported closing a $156 million Series C funding round and doubling its enterprise customer base in the last year.
- The deal will integrate Observe’s observability capabilities directly into Snowflake’s AI Data Cloud, bolstering telemetry access and transparency for AI-driven enterprises.
- Snowflake said the acquisition will enable customers to shift from reactive monitoring to AI-driven troubleshooting, resolving production issues up to 10 times faster while lowering observability costs.
Dive Insight:
Snowflake’s acquisition highlights the rising importance of observability as a core platform requirement rather than a standalone IT tool, a shift that could reshape how enterprises manage a system’s ability to reliably perform in AI-driven environments.
As enterprises deploy complex AI applications, telemetry data volumes from software have surged. To control costs, organizations often rely on sampling and short retention windows, while data platforms are under pressure to support a wide mix of analytical, operational and AI workloads.
Snowflake’s acquisition aims to address both challenges.
Under the deal, Observe’s platform will integrate directly into Snowflake’s AI Data Cloud to enable enterprises to ingest and retain all of their telemetry data at a lower cost, according to a press release.
Observe’s AI Site Reliability Engineer will be combined with Snowflake’s high-fidelity data, enabling users to move from reactive to proactive monitoring and resolve production issues faster, the companies stated.
The deal also establishes an open-standard observability architecture based on Apache Iceberg and OpenTelemetry, allowing companies to manage burgeoning telemetry volumes while improving flexibility, governance and efficiency.
The deal reinforces several converging trends, in particular the rise of AI-assisted site reliability engineering and the growing adoption of open standards to avoid vendor lock-in.
“Reliability is no longer just an IT metric — it’s a business imperative,” Ridhar Ramaswamy, Snowflake’s CEO, said in the release. “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.”
For Snowflake, the acquisition deepens its move beyond analytics into operational intelligence. According to the company, the acquisition will expand its footprint in the $50-plus billion IT operations management software market, and strengthen its observability offerings.
