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Snowflake has announced its intent to acquire Observe, a leader in AI-powered observability, in a strategic move to embed next-generation observability capabilities directly into the Snowflake AI Data Cloud. This acquisition aims to address the growing complexity of AI-driven applications by enabling enterprises to ingest, analyze, and retain 100% of their telemetry data with greater efficiency and AI-powered automation.
Snowflake announces definitive agreement to acquire AI observability platform Observe.
The move targets the $50+ billion IT operations management (ITOM) software market.
Integration will combine Observe's AI SRE with Snowflake's data cloud for up to 10x faster troubleshooting.
The unified platform will be built on open standards: Apache Iceberg and OpenTelemetry.
It promises lower-cost retention of 100% of telemetry data, eliminating sampling trade-offs.
The goal is to provide a scalable foundation for operating next-generation AI agents and applications.
The acquisition positions observability as a core data workload within Snowflake's platform. Sridhar Ramaswamy, CEO of Snowflake, highlighted the business imperative, stating, “As our customers build increasingly complex AI agents and data applications, reliability is no longer just an IT metric – it’s a business imperative.” By integrating Observe's platform, which was built on Snowflake, the company aims to allow enterprises to apply consistent analytics and AI across both observability and business data, improving governance and operational resilience.
A key outcome of the combination is the enhancement of Observe's AI-powered Site Reliability Engineer (SRE) with Snowflake's high-fidelity data. This is designed to move teams from reactive monitoring to proactive, automated troubleshooting. Jeremy Burton, CEO of Observe, explained the synergy: “By combining our AI-powered SRE with Snowflake’s AI Data Cloud, we can deliver faster insights, greater reliability, and dramatically better economics.” The unified context graph correlates logs, metrics, and traces to help resolve production issues significantly faster.
The acquisition directly tackles the industry challenge of skyrocketing telemetry volumes and costs. The integrated solution, based on Apache Iceberg and OpenTelemetry standards, leverages Snowflake's scalable storage and compute to allow full-fidelity data retention without prohibitive expense. Analyst Sanjeev Mohan noted the strategic insight: “The lines between data platforms and observability platforms are blurring.” This approach treats telemetry as first-class data, enabling enterprises to manage massive scales required for autonomous AI systems.
This planned acquisition signals Snowflake's aggressive expansion into the ITOM space, aiming to provide a unified, open, and economically viable data foundation for the reliable operation of the next wave of AI applications.
About Snowflake
Snowflake is the platform for the AI era, making it easy for enterprises to innovate faster and get more value from data. More than 12,600 customers around the globe, including hundreds of the world’s largest companies, use Snowflake’s AI Data Cloud to build, use and share data, applications and AI. With Snowflake, data and AI are transformative for everyone.
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