Summary:
Datadog acquires Metaplane, an AI-powered data observability startup.
The acquisition will enhance Datadog's capabilities in the data observability sector.
Metaplane will continue to serve customers under the new brand “Metaplane by Datadog.”
The market for data observability tools is projected to grow at a 12.2% CAGR through 2030.
This acquisition follows Datadog's previous purchase of Quickwit.
Datadog Acquires Metaplane
Cloud monitoring and security platform Datadog has made headlines with its acquisition of Metaplane, an AI-powered data observability startup. While financial details remain undisclosed, this move is poised to accelerate Datadog's expansion into the data observability sector, building on previously launched products.
In a press release, Datadog emphasized that the acquisition will allow Metaplane to continue servicing its existing and new customers under the new name “Metaplane by Datadog.” According to Michael Whetten, Datadog's VP, observability has evolved beyond developers and IT teams to become essential for data teams managing complex workflows, especially as businesses increasingly deploy AI applications.
The Founders and Evolution of Metaplane
Founded in 2020 by MIT graduate Kevin Hu, along with former HubSpot engineer Peter Casinelli and ex-Appcues developer Guru Mahendran, Metaplane initially started as a customer success product aimed at reducing churn through data analysis. However, after participating in Y Combinator and in response to the pandemic, the company pivoted to focus on data analytics tools.
How Metaplane Works
Metaplane employs anomaly detection AI models that are primarily trained on historical metadata to monitor data and establish lineages in data warehouses. The system notifies stakeholders of issues through their preferred channels (e.g., Slack, PagerDuty), allowing users to mark alerts as expected changes, which helps the system learn over time.
Having raised $22.2 million from notable investors like Khosla Ventures and Y Combinator, Metaplane has positioned itself as a key player in the data observability market. As of January 2023, the startup had around 10 employees.
The Market Opportunity
According to Grand View Research, the market for data observability tools was valued at $2.14 billion in 2023 and is projected to grow at a 12.2% compound annual growth rate from 2024 to 2030. Datadog's acquisition of Metaplane is a strategic step into this burgeoning market, especially considering the competition from established players like Monte Carlo and Cribl.
As Datadog looks to differentiate its products, this acquisition follows another recent purchase of Quickwit, an open-source cloud-native search engine for logs. The landscape for data observability is competitive, and Datadog's challenge will be to effectively leverage its acquisitions and in-house projects to stand out in the market.
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