Snowflake plans to utilize Observe's capabilities to provide its customers with improved monitoring of their data cloud environments. Observe's CEO, Jeremy Burton, highlighted the company's unique approach of handling telemetry data in a centralized way, which he believes gives it a competitive edge over legacy monitoring and APM players like Splunk. The company's annual recurring revenue increased by 171% in FY2024, and its total contract value increased by 194%.
Key takeaways:
- San Mateo-based startup Observe has raised $115 million in a series B funding round led by Sutter Hill Ventures and including participation from Snowflake Ventures.
- Observe uses the data cloud of Snowflake as the foundation for its platform, which provides observability capabilities into the data cloud, enabling users to better monitor and manage their environment.
- With the new funding, Observe plans to expand its teams and scale up its presence in North America, and Snowflake plans to tap into Observe's capabilities to provide better monitoring for its customers.
- Observe's unique approach involves developing a centralized data lake that ingests all telemetry data in one place, providing users with relevant context to quickly identify and resolve incidents.