Daniel Saks
Chief Executive Officer
The observability market is undergoing explosive growth, with platforms securing hundreds of millions in funding and the market reaching significant valuations. As enterprises move to complex distributed systems, observability has evolved from simple monitoring to AI-powered platforms that prevent failures before they impact customers. For go-to-market teams targeting these observability companies or similar enterprise software buyers, understanding their growth trajectories and funding patterns is crucial. Agentic AI platforms like Landbase now enable teams to find and qualify prospects at these high-growth observability companies using natural-language prompts like "VPs of Sales at observability startups that raised Series B funding" to build targeted outreach lists instantly.
Datadog provides comprehensive full-stack observability covering metrics, logs, traces, and real user monitoring (RUM). Its platform integrates with 1,000+ technologies to deliver unified visibility across cloud infrastructure, applications, and user experiences.
Datadog leads the observability market with comprehensive integration ecosystem and AI/ML-powered anomaly detection for proactive issue identification. The platform provides full-stack observability covering infrastructure, applications, and user experience, and recently launched LLM observability for monitoring generative AI applications.
Publicly traded company (NASDAQ: DDOG). As a public company, raises capital through equity and debt markets rather than venture funding rounds.
New Relic offers full-stack observability across applications, infrastructure, and user experiences with industry's most generous free tier offering 100GB data monthly. The platform includes 780+ integrations and uses applied intelligence for automatic root cause insights.
New Relic provides the industry's most generous free tier at 100GB per month, enabling growing companies to access enterprise-grade features without enterprise pricing. The platform features strong developer community, extensive documentation, and applied intelligence for automatic root cause analysis with balanced feature set at competitive pricing.
Taken private in 2024 through private equity acquisition. Specific funding details not publicly disclosed as private company.
Cribl provides observability data pipeline management that sits as infrastructure layer before traditional observability platforms. The platform helps companies reduce observability costs by optimizing data before storage and enables choice and control over data routing.
Cribl raised $319M Series E in August 2024, bringing total funding to $602M and demonstrating strong investor confidence. The company occupies a unique position as observability data infrastructure layer, helping enterprises significantly reduce telemetry data costs with backing from top-tier investors including Sequoia, Google Ventures, and Tiger Global.
Dynatrace provides enterprise-grade observability powered by proprietary Davis AI engine delivering automatic root cause analysis with minimal configuration. The platform features OneAgent automatic instrumentation that auto-discovers applications and requires minimal manual setup.
Dynatrace's Davis AI engine provides industry-leading automated root cause analysis while OneAgent automatic instrumentation minimizes configuration overhead. Named 15-time Gartner Leader with highest position for Ability to Execute, the platform offers full-stack monitoring with 750+ technology integrations.
Publicly traded company (NYSE: DT). Raises capital through public equity and debt markets.
Splunk provides unified observability and security (SIEM) platform with powerful data analysis and correlation capabilities. The platform features NoSample technology for complete trace capture and excels in compliance-heavy environments.
Cisco's $28B acquisition in March 2024 validated observability market value and positioned Splunk as leader in converging security and observability. Named Gartner Leader for Observability Platforms, Splunk is strong in compliance and security monitoring.
Honeycomb specializes in high-cardinality observability providing exceptional capabilities for analyzing complex distributed systems. The platform features intuitive query interface for complex investigations and strong focus on developer experience for microservices debugging.
Honeycomb leads high-cardinality observability for analyzing complex distributed systems with developer-first approach that pioneered modern observability practices. The platform has strong developer community and thought leadership, and is preferred by engineering teams debugging microservices.
Privately held. Specific funding details not publicly disclosed.
Elastic provides powerful search and log analysis capabilities through ELK Stack (Elasticsearch, Logstash, Kibana). The platform offers unified observability, security (SIEM), and search in single stack.
Elastic excels in log-heavy environments and added AGPL licensing in August 2024, restoring true open-source status and strengthening position with open-source advocates. The unified platform serves search, observability, and security use cases with strength in compliance and security monitoring.
Publicly traded company (NYSE: ESTC). Raises capital through public equity markets.
IBM Instana provides automated enterprise observability with automatic discovery and monitoring across 300+ platforms. The platform features agentic AI that investigates and resolves problems without manual runbooks.
IBM Instana pioneered agentic AI innovation for auto-resolving incidents without manual intervention. With IBM enterprise backing providing robust support and compliance, the platform offers automatic instrumentation across 300+ platforms minimizing setup with competitive pricing from $20/month per MVS.
Subsidiary of IBM (NYSE: IBM). No independent venture funding.
Sumo Logic provides cloud-native log analytics and observability built specifically for cloud and Kubernetes environments. The platform features multi-tenant SaaS architecture for structured and unstructured logs with machine learning and advanced analytics.
Sumo Logic's cloud-native design built specifically for cloud environments excels in security and compliance monitoring. With multi-cloud support working seamlessly across AWS, Azure, and Google Cloud, it's an established player in log analytics and observability space.
Acquired by private equity (Francisco Partners) in May 2023. Current status as private company.
AppDynamics provides business-focused application performance monitoring (APM) with unique capabilities linking IT performance to business outcomes. The platform features code-level root cause analysis and real-time visibility into user behavior and application performance.
AppDynamics uniquely focuses on business observability linking IT performance to business metrics with code-level diagnosis detecting problems at code level, not just infrastructure. As part of major Cisco/Splunk consolidation, it's strong for business-critical applications where revenue impact matters.
Subsidiary of Cisco, part of Splunk Observability portfolio following $28B acquisition.
Uptrace provides cost-effective observability built on OpenTelemetry-native architecture with excellent performance. The platform offers unified metrics, logs, and traces in single platform at significantly lower cost than enterprise alternatives.
Uptrace delivers 90% cost reduction versus enterprise platforms while maintaining features. With OpenTelemetry-native architecture ensuring no vendor lock-in and 3,000+ deployments, it addresses critical market need around observability costs.
Privately held, bootstrapped.
Monte Carlo provides data observability focused on data quality and trusted data foundations for AI and analytics. The platform features AI-powered anomaly detection for data pipelines and automated root-cause analysis for data issues.
Monte Carlo pioneered data observability and coined "data downtime" concept. The platform extended to AI observability for monitoring AI/LLM outputs and ranks #1 on G2 while Forbes called it "New Relic for data." Strong enterprise traction includes Nasdaq, Honeywell, and Roche.
Privately held. Significant funding from Accel, ICONIQ Capital, Redpoint Ventures.
Dash0 is an OpenTelemetry-native observability platform featuring AI capabilities for modern cloud workloads. The platform is built from ground up with native OpenTelemetry support ensuring no vendor lock-in and future-proof architecture.
Dash0's OpenTelemetry-first approach eliminates vendor lock-in while AI-native design addresses modern AI era workloads. CEO published independent $12B market analysis showing deep market understanding and thought leadership in observability space.
Observe is AI-native observability platform built 100% on Snowflake's data platform offering significant cost advantages through data lake architecture. The platform features AI agents to accelerate developer productivity and incident resolution.
Observe's Snowflake-native architecture provides cost efficiency and scalability while AI agents enable autonomous troubleshooting and incident resolution. The company ranked #38 on Deloitte Technology Fast 500™ 2025, demonstrating rapid growth trajectory.
The observability market is experiencing strong growth with substantial funding activity in 2024. According to analysis by Dash0 CEO, the actual market size may reach $12B - significantly higher than commonly cited estimates. This growth is driven by several key trends:
For companies selling to or competing with observability platforms, understanding these growth patterns is essential for effective go-to-market strategy.
This list highlights established leaders and fast-growing startups that:
The observability market's rapid growth creates lucrative opportunities for B2B companies selling complementary products and services. However, manually identifying and qualifying prospects at these high-growth observability companies is time-consuming and inefficient.
This is where AI-powered go-to-market platforms like Landbase become essential. Using natural-language targeting, sales and marketing teams can instantly build qualified prospect lists with prompts like:
Landbase's database includes 300M+ contacts and 24M+ companies with 1,500+ unique signals across firmographic, technographic, intent, hiring, and funding data. By combining this rich data with agentic AI, teams can:
For B2B organizations targeting the fast-growing observability market, AI-powered GTM is no longer optional—it's a competitive necessity.
Traditional monitoring focuses on known metrics and predefined alerts based on expected system behavior, addressing "known unknowns." Observability enables exploration of unknown issues or "unknown unknowns" through rich telemetry data including metrics, logs, and traces. Observability platforms provide context and correlation needed to understand why systems behave unexpectedly rather than just alerting when they do. This shift from reactive monitoring to proactive exploration is essential for modern distributed systems.
AI and ML process massive volumes of telemetry data from complex distributed systems and identify meaningful patterns humans would miss. AI-powered platforms automatically detect anomalies, correlate related events across data sources, and provide root cause analysis without manual intervention. This automation is essential as system complexity grows and operators face alert fatigue and data overload. Modern observability platforms like Datadog and Dynatrace use AI to reduce mean time to resolution and prevent incidents.
Agentic AI models are autonomous AI systems that understand goals, plan actions, and execute tasks independently. In observability, platforms like IBM Instana use agentic AI to automatically investigate and resolve incidents without human intervention. In GTM, Landbase's GTM-2 Omni uses agentic AI to interpret natural-language prompts and build qualified prospect lists automatically. Both applications represent a shift from passive tools to active AI agents that accomplish complex tasks autonomously.
Top-tier venture capital firms actively funding observability startups include Sutter Hill Ventures, General Catalyst, Cherry Ventures, Sequoia Capital, Google Ventures, and Tiger Global Management. Sequoia, Google Ventures, and Tiger Global invested in Cribl's $200M Series E in August 2024. Strategic corporate investors like Cisco through its $28B Splunk acquisition in March 2024 are also major players demonstrating market consolidation trends.
Use Landbase's VibeGTM interface to target prospects using natural-language prompts combining company signals with role targeting. For example: "VPs of Sales at observability startups with 50-200 employees that raised funding" or "Marketing Directors at companies using Datadog or New Relic." Landbase interprets your prompt, applies its 1,500+ unique signals, and returns AI-qualified lists of up to 10,000 contacts ready for activation in your existing tools.
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