Snowflake has signed a definitive agreement to acquire Observe, aiming to integrate AI-powered observability into the Snowflake AI Data Cloud for enterprises running AI-driven systems. The transaction is meant to aid organizations manage reliability at scale as telemetry volumes grow from terabytes to petabytes.
By embedding Observe’s capabilities directly into Snowflake, customers will be able to treat logs, metrics, and traces as first-class data, managed using open standards such as Apache Iceberg and OpenTelemetry. The combined platform is expected to support proactive operations by correlating telemetry with business data, while reducing costs through economical storage and elastic compute. The move also positions Snowflake more deeply in the IT operations management software market, which Gartner estimates reached $51.7 billion in 2024.
Snowflake CEO Sridhar Ramaswamy said, “As our customers build increasingly complex AI agents and data applications, reliability is no longer just an IT metric – it’s a business imperative.” Observe CEO Jeremy Burton added, “Observability is fundamentally a data problem, and Observe joining Snowflake is a natural extension of their AI Data Cloud.” He said the combination will deliver “faster insights, greater reliability, and dramatically better economics.” Industry analyst Sanjeev Mohan highlighted that the deal reflects how “the lines between data platforms and observability platforms are blurring.”