I recently came across this article about Observe Inc.
They haven’t released their product yet. They say it should be released by year end. They are building their product on top of Snowflake and they are trying to unify all of the disparate monitoring tools under one platform - logs, APM, infrastructure monitoring, etc.
First, I start to wonder, “wasn’t this DataDog’s selling point?” The hype around DDOG was it’s “single plane of glass” that unifies all of the observability metrics. Yet Observe says that DDOG is a specialist in metrics monitoring, and that their platform is going to be the real unifier that disrupts all of the others.
The CEO of observe is on Snowflake’s board of directors. So this isn’t a fly by night Silicon Valley start-up.
DataDog’s stock price is factoring years of hypergrowth into its valuation. But could it be that DataDog stalls out like New Relic sooner than anyone imagined?
Another thought - I’m getting more and more excited about Snowflake. I haven’t bought in yet, but I’m seeing this being built on their platform, and I’m thinking about not only how big their TAM is, but also how much that TAM is going to expand in the future.
Analysts at least one analyst is saying that Snowflake can sustain 100% growth through fiscal 2023. If that is true, Snowflake will be growing at faster than 100% at a 4 billion dollar run rate. At that rate, they should overtake Shopify’s revenue within a few years. Meanwhile, Snowflake currently has a market cap that is 1/2 that of Shopify. I know most people here don’t own Shopify precisely because it is overvalued. But it seems that, at least in relation to Shopify, Snowflake is not so absurdly valued as it would appear at first glance.
Saul has said that he doesn’t look at valuation. So aside from valuation, what is there not to like about Snowflake?
To me, this article is selling DDOG short. They are not just a metrics monitoring company, they do APM and log ingestion among many other things.
IMO, the true value of a tool like Observe would be lining up data coming out of DDOG with data coming from your CRM tools (Salesforce, Intercom, etc.) or other data collectors (point of sale?) to match customer reported or real time issues with data from your backend systems monitored by Datadog.
That’s just my first impression from reading that article. I think this tool would compliment DDOG rather than replace it. The more data and detail collected out of DDOG, the better for an analytics tool like Observe.
Thanks for posting this. I read the article but I am not convinced yet. The advantage of snowflake is that it is able to store both structured and non-structured data. However someone still needs to sift through it to find actionable information and it has to be timely. The way he has explained is the data is coming into s3 (amazon storage) from all these various machines and then he will move this into Snowflake and then run analysis. The goal needs to be try and provide metrics almost real time. Most of the APM tools do that. Data dog is trying to provide this in near real time. So I am not sure what benefit observe will be able to drive.
I am just not impressed at the moment. Snowflake has become a buzzword like Hadoop was once. Admittedly, its far superior to Hadoop. In fact it may have used Hadoop architecture to simplify the end user experience. I am not familiar with snowflake architecture per se but thats not the point I am trying to make. All I am saying is the way its explained in the article collecting data from s3 and putting in Snowflake which can lead to eventual analysis is too long. Whereas, the value is in real time analysis. Of course this is just my impression from reading it. I may be missing something since I cant believe someone is building a tool that is not able to do real time analysis. Eventual analysis, there are dime a dozen.
This is just my 2 cents from what I could understand.