Problem

Observe solves the operational pain of troubleshooting modern, distributed applications, where traditional logging, monitoring, and application-performance-management tools are complex, siloed, and increasingly expensive. As telemetry volumes grow to petabyte scale, engineering and SRE teams face longer mean time to resolution, fragmented context across logs, metrics, and traces, and pressure to sample data or shorten retention windows to control costs. The killer use case is a production incident: responders need to correlate signals quickly, identify root cause, and restore service without switching among multiple tools or sacrificing historical telemetry.

Product / Service

Observe provides a fully managed SaaS observability platform that unifies logs, APM, infrastructure monitoring, metrics, and traces on a streaming data lake. Its Context Graph organizes telemetry into semantic relationships, while explorers and AI SRE help engineers investigate anomalies, pivot from infrastructure views into contextual logs, and perform faster root-cause analysis. The commercial promise is more complete and longer telemetry retention at lower total cost, with Observe marketing up to 10x faster troubleshooting and 60% lower cost; its earlier company description framed the benefit as troubleshooting three times faster at one-third the cost.

Market

Observe competes in the observability-platform category, within the broader IT operations management software market. Gartner’s listed alternatives include Dynatrace, New Relic, Datadog, AppDynamics, Amazon CloudWatch, ManageEngine Applications Manager, and Azure Monitor; Observe also positions itself against legacy and do-it-yourself approaches such as Splunk and the ELK Stack. The market is substantial: Snowflake cited Gartner’s estimate of $51.7 billion for ITOM software in 2024.

Observe was commercial and scaling rather than pre-revenue: the company reported more than 60 customers, including Capital One, Topgolf, and Reveal, support for more than 1 PB of data per day for a single customer, ARR growth above 200% year over year, and net revenue retention above 190% in the first half of FY25. Research in the supplied corpus reports that Snowflake acquired Observe in January 2026, following a definitive acquisition agreement announced on January 8; the acquisition was intended to bring Observe’s AI-powered observability into Snowflake’s AI Data Cloud.