Snowflake Acquires Observe
2026-01-16 03:09:58

Snowflake Acquires Observe to Enhance AI-Driven Observability Solutions

In a significant move aimed at strengthening its capabilities in AI-driven observability, Snowflake has announced the acquisition of Observe, a leading provider in this emerging sector. The integration of Observe's advanced observability platform directly into Snowflake promises to improve the value of its AI Data Cloud by enabling organizations to ingest and retain 100% of their telemetry data while minimizing costs.

One of the key advantages of this acquisition is the ability of enterprises to transition from passive monitoring to proactive problem resolution. By combining the AI-powered Site Reliability Engineers (SREs) from Observe with the high-fidelity data provided by Snowflake, organizations can automate issue resolution before they escalate, leading to problem-solving speed enhancements of up to ten times during production operations. This advance is crucial for managing the vast amounts of telemetry data required by next-generation generative AI agents and applications.

Another vital development from this acquisition is the architecture based on open standards, specifically Apache Iceberg and OpenTelemetry, which will support the management of extensive telemetry data. This open architecture allows organizations to efficiently handle the burgeoning volume of data generated by AI applications, ensuring they have the foundational layers of economic object storage, flexible processing power, and interoperable standards necessary for large-scale operations.

As noted by Snowflake CEO Sridhar Ramaswamy, the growing complexity of AI agents and data applications necessitates a shift in how reliability is measured and managed, moving beyond traditional IT metrics. By seamlessly incorporating Observe's functionalities into the Snowflake AI Data Cloud, customers will gain a comprehensive observability management system spanning terabytes to petabytes of telemetry data.

Moreover, with the increased amount of telemetry data generated by AI-driven applications, organizations have faced challenges in maintaining cost efficiency while ensuring adequate data retention. Historically, many have resorted to sampling and short-term data retention practices, which can impede their ability to access crucial insights. The combined offerings of Observe and Snowflake allow businesses to overcome these limitations, providing high-fidelity telemetry retention at reduced costs while enhancing visibility over all data assets.

Jeremy Burton, CEO of Observe, emphasized that observability is fundamentally a data issue. By joining Snowflake, Observe not only enhances its observability solutions at an enterprise scale but also integrates seamlessly into the AI Data Cloud ecosystem. This partnership is set to streamline the manner in which organizations address the increasing complexity of system operations and issue resolution in a production environment.

Industry analysts, such as Sanjeev Mohan from SanjMo, highlight that the costs associated with observability stem from treating telemetry data as specialized, dedicated infrastructure. As organizations increasingly move towards integrating observability data into modern data platforms, the delineation between data and observability platforms is blurring, leading to enhanced economic viability and operational effectiveness.

Post-acquisition, Snowflake is set to further support users in constructing and managing reliable agents and applications. The developer-friendly approach of Observe will enhance real-time enterprise contextual understanding, rapid root cause analysis, and AI-assisted issue resolution, complementing Snowflake’s existing workload engine. This integration is pivotal for effectively operating dynamic and autonomous systems on a large scale.

Finally, as the demand for IT Operations Management (ITOM) software grows—projected to expand by 9.0% to a market size of $51.7 billion in 2024 according to Gartner—Snowflake is positioned to bolster its presence in this fast-evolving sector. The successful completion of the acquisition remains contingent upon obtaining necessary regulatory approvals and meeting customary transaction conditions.

In summary, Snowflake’s acquisition of Observe marks a transformative step in addressing the evolving needs of enterprises as they adopt AI technologies. With this acquisition, Snowflake is well-equipped to offer groundbreaking solutions in observability that enhance operational reliability and efficiency in the era of AI-driven applications.


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Topics Business Technology)

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