Snowflake and Datadog Usage Model

I think there’s some confusion around how usage can be impacted by Holidays for Snowflake vs Datadog and I wanted to clear that up.

"…Mark Murphy – JPMorgan Chase and Company – Analyst
Yes. Thank you very much. And I’ll add my congrats on just a very strong bookings quarter that you’re reporting here, especially on the RPO line. I wanted to ask about the comment on the slower-than-normal return to consumption growth in January.
Plenty of other software companies saw slower consumption over the holidays. I’m curious, did you get any sense of what occurred in January that might have driven that behavior perhaps relating to omicron or other factors? And have you seen that change in any direction so far in February?

Mike Scarpelli – Chief Financial Officer
Yes. So as I said, we did see kind of a little bit more of a holiday effect going into January. Whether people were taking longer vacations, I don’t know. But we did see it return to more normal in January.
And you do see about 70% of our work is really driven by machines. The other 30% is humans. And that machine – and we can see that machine layer stays consistent on a daily basis, and it’s the human interaction that changes. And we did see a decrease in human interaction early in January, which leads us to believe people were taking vacations.
As an example, last week – we look at it on a daily basis, was Presidents Week and ski week for a number of people. We see it decrease there as well, too, but then we see a return in a week like this…"

That’s a very valid point. Snowflake queries are run manually by engineers over large datasets for many different reasons like trying/experimenting to build a better report with some more additional data etc. During holidays these manual jobs naturally see a dip. If you’re thinking why Datadog doesn’t see a similar effect, it’s basically due to the way Datadog is used. Datadog essentially monitors services that are running in production or non-prod environment. These are all automated and a lot of those monitor important KPIs like Availability etc and fire alerts on set thresholds. So, Holidays or No Holidays don’t make much of a difference.

So in a way, yes Datadog’s consumption model is a little more predictable :slightly_smiling_face:


ronjonb (


Great point. I would also add that I see holidays as a plus for Datadog since retailers on the cloud need to scale up their infrastructure to handle holiday traffic. AWS was created to fulfill Amazon’s own needs: how can we handle Black Friday traffic? Same thing happens to other retailers that are now on the cloud. They have to scale up their backend to 10x, even 100x, to handle the amount of shopper traffic hitting their sites. Every second that the site is down you lose money to your competitors. IT teams set up war rooms and use all the tools they can to monitor what’s going on. Then they scale it down after December.

Datadog revenue is proportional to the number of containers and number of events in the container. Both of which scale up during holiday shopping spree. Not the case with Snowflake.