Snowflake, the AI Data Cloud company, announced its definitive agreement to acquire Observe, a leading provider of AI-powered observability solutions. This strategic acquisition will allow Snowflake to deliver next-generation observability, built on open standards and engineered to handle the scale, complexity, and economics of modern AI-driven enterprises.
“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 of Snowflake. “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.”
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Observe was originally built on Snowflake, and together, the two companies will provide enterprises with significant advancements:
Agentic AI for faster troubleshooting: The integration of Observe’s AI-powered Site Reliability Engineer (SRE) with Snowflake’s trusted data enables a shift from reactive monitoring to proactive, automated troubleshooting. Observe’s AI SRE leverages a unified context graph to correlate logs, metrics, and traces, allowing teams to detect anomalies earlier, pinpoint root causes faster, and resolve production issues up to ten times more quickly. This capability strengthens operational resilience as systems grow more distributed, dynamic, and autonomous.
Open-standard architecture for scalable operations: The acquisition establishes a unified observability architecture based on Apache Iceberg and OpenTelemetry, which Snowflake has actively contributed to. This approach allows organizations to handle massive telemetry volumes using cost-efficient object storage, elastic compute, and interoperable standards. By treating telemetry as first-class data within the Snowflake AI Data Cloud, enterprises can seamlessly apply analytics and AI across observability and business datasets with enhanced governance, flexibility, and efficiency.
Comprehensive telemetry retention with cost efficiency: AI-driven applications generate unprecedented volumes of logs, metrics, and traces, forcing many enterprises to rely on sampling or short retention periods. By combining Observe’s AI observability platform with Snowflake’s scalable data foundation, organizations can retain high-fidelity telemetry data, reduce costs, and gain full visibility across their entire data estate.
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“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 of 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.”
Sanjeev Mohan, Principal Analyst at SanjMo, added: “Observability’s cost problem stems from treating telemetry as special-purpose data requiring specialized infrastructure. The industry is correcting this by bringing observability data into modern data platforms where it can leverage existing lakehouse economics and AI capabilities. Snowflake’s acquisition highlights a critical industry insight: the lines between data platforms and observability platforms are blurring.”
Once the acquisition closes, Snowflake will further its commitment to helping customers build and operate reliable AI agents and applications. Observe’s developer-friendly approach complements Snowflake’s existing workload engines by providing real-time enterprise context, faster root-cause analysis, and AI-assisted troubleshooting essential for operating dynamic, autonomous systems at scale. This move also expands Snowflake’s presence in the rapidly growing IT operations management (ITOM) software market, which grew 9% in 2024 to $51.7 billion, according to Gartner.
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