AI data cloud company Snowflake today said it has signed a definitive agreement to acquire Observe, a leader in AI-powered observability. The acquisition will integrate Observe’s platform directly into Snowflake, expanding that company’s capabilities in the IT operations management market, valued at more than $50 billion, according to Gartner research.
The combination of Observe’s AI Site Reliability Engineer with Snowflake’s data will provide customers with the ability to be more proactive and automated with their troubleshooting of incidents, and resolving those issues more quickly. The integration also will establish an open-standard architecture built upon the Apache Iceberg data tables and Open Telemetry data for managing huge volumes of information. The ability to manage and store that data will help customers eliminate the need for data sampling and short retention windows to manage costs while improving visibility.
“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, in the announcement of the agreement. “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.”
“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.”
In its announcement, Snowflake noted that “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. ”
Closing of the acquisition is subject to receipt of required regulatory approvals and other customary closing conditions.
