I really didn’t want to write this but I felt I should.
Thanks to everyone who took the time to read my brief write-up on DDOG for some context.
When it comes to comparing ESTC and DDOG, the questions that the members of this board bring up on both sides are really worthwhile and made me introspect on my 10% investment in DDOG.
Here’s my perspective:
What is ESTC: Elastic NV is a company that was founded to provide commercial services and products around Elasticsearch. Elasticsearch is a search engine based on the Lucene ( an open-source library).
What is DDOG: Datadog is a monitoring service for cloud-scale applications, providing monitoring of servers, databases, tools, and services, through a SaaS-based data analytics platform.
[Keep in mind the word “Monitoring”]
Brief History of how ESTC saw DDOG then:
DataDog started as a company in 2010 focusing on cloud infrastructure monitoring. They initially used Postgres and as their needs grew they adopted Elasticsearch.
Here’s the link where ESTC proudly acknowledges DDOG: https://www.elastic.co/elasticon/conf/2017/sf/elastic-at-dat….
Here’s ESTC again cheering for DDOG in 2013 when it was a startup.
“Datadog is a SaaS monitoring service startup for IT, operations and development teams that enables these teams to better analyze metrics and events, ensuring their operations continue smoothly. By using Elasticsearch, Datadog was able to scale to take on larger customers who produce 500x more events than Datadog could originally handle.”
What has happened since then?
Datadog kept focusing on what they started with - Cloud infrastructure “monitoring”. That single focus helped them go 10x ahead and monetize the APM market with their SAAS offering.
DDOG monitoring ESTC:
You may not be aware of this and is a little funny but true :). The monitoring capability of Datadog was good enough by then that they had a solution to monitor Elasticsearch ( which had problems including problems with determining the optimum heap size and others…( remember Elasticsearch is based on Java and has to deal with the Garbage Collection issues… i’m not going to delve into those technical details as they aren’t necessary for this discussion.).
If you need details please read this: https://www.datadoghq.com/blog/monitor-elasticsearch-datadog…
ESTC Cloud Offering:
ESTC has surely realized how lucrative the monitoring space is and has a cloud offering now.
I’ll leave it to customers to compare and evaluate the costs and benefits versus the Datadog offerings.
My Takeaway: Being a developer myself, I have very high respect for Shay Banon and Elasticsearch. However, Datadog focused on a single area all these years…“Application Performance Monitoring”. Tinker, muji and others have written about this singular focus of DDOG in previous posts. In today’s context, AFAIK, both compaines have about the same number of FTEs. Do you think it is feasible that ESTC would ask all their FTEs to drop whatever they’re working on and focus on beating DDOG in what Datadog has accomplished in the last 10 years with a single focus?
Here’s an example of a user who started off building a self-managed Elasticsearch cluster with engineers building visualizations and dashboards with Kibana. They then build automation to manage their Elasticsearch data. With the rise of bitcoin this company saw huge traffic and adopted Datadog. That company is none other than coinbase.
P.S. Please note my Caveat about DDOG in my last post. I maintain my 10% position in DDOG which will change if the truth changes.