Snowflake announced it has signed a definitive agreement to acquire Observe, positioning the deal as a move to bring AI-powered observability directly into the Snowflake AI Data Cloud as enterprises manage growing volumes of telemetry from increasingly complex AI agents and data applications.
Snowflake said the combination is intended to help customers move from reactive monitoring to more automated troubleshooting through Observe’s AI-powered site reliability engineering capabilities, which correlate logs, metrics and traces to speed anomaly detection, root-cause analysis and incident resolution. The company said the integrated approach can help teams resolve production issues up to ten times faster.
The companies also said they plan to deliver an open-standard observability architecture based on Apache Iceberg and OpenTelemetry, enabling organizations to store and analyze large telemetry volumes using object storage and elastic compute. Snowflake said this approach can improve economics and allow enterprises to retain high-fidelity telemetry data rather than relying on sampling and short retention windows to control cost.
Snowflake said the acquisition would deepen its focus on helping customers operate reliable AI-driven systems and expand its presence in the IT operations management software market. The company cited Gartner research indicating the ITOM software market grew 9% in 2024 to $51.7 billion.
KEY QUOTES:
“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 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.”
Sridhar Ramaswamy, CEO, Snowflake
“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.” “By combining our AI-powered SRE with Snowflake’s AI Data Cloud, we can deliver faster insights, greater reliability, and dramatically better economics.”
Jeremy Burton, CEO, Observe
“Observability’s cost problem stems from treating telemetry as special-purpose data requiring specialized infrastructure.” “Snowflake’s acquisition highlights a critical industry insight: the lines between data platforms and observability platforms are blurring.”
Sanjeev Mohan, Principal Analyst, SanjMo
