Snowflake has announced a definitive agreement to acquire Observe, placing enterprise-grade observability at the center of its strategy. The acquisition strengthens Snowflake’s AI Data Cloud and represents a clear move toward next-generation, AI-driven observability at enterprise scale—designed to meet the complexity, reliability, and economic requirements of modern AI-powered organizations.
Enterprise-scale observability with Snowflake and Observe
With this transaction Snowflake reinforces its position in the IT operations and observability market, where reliable operations are no longer just a technical concern but a business-critical requirement. Combining Snowflake’s data platform with Observe’s observability solution enables organizations to ingest, store, and analyze massive volumes of telemetry without sacrificing performance or cost efficiency.
Observe was built natively on Snowflake, and the integration allows organizations to retain and analyze 100% of their logs, metrics, and traces. Treating telemetry as first-class data in the Snowflake AI Data Cloud enables consistent analytics and AI across both business and operational data, improving accuracy, governance, and cost-effectiveness.
How Snowflake Observe improves modern AI systems
A core element of Snowflake Observe is the fusion of Observe’s AI-driven Site Reliability Engineering capabilities with Snowflake’s high-fidelity data platform. This empowers IT and DevOps teams to transition from reactive monitoring to proactive, automated troubleshooting. A unified context graph that correlates logs, metrics, and traces helps teams detect anomalies earlier, accelerate root-cause identification, and resolve production issues up to ten times faster—boosting operational resilience in increasingly distributed and autonomous systems.
The acquisition also establishes a unified, open architecture based on Apache Iceberg and OpenTelemetry. This open design handles very large telemetry volumes using object storage, elastic compute, and interoperable standards. It provides a scalable foundation for next-generation AI agents and enterprise applications where observability is an integrated platform capability rather than a separate tool.
Sridhar Ramaswamy, CEO of Snowflake, emphasizes that reliability has become a business metric, not just an IT measure. As customers build more sophisticated AI agents and data applications, stable operation becomes essential to business success. By embedding Observe’s capabilities directly into the Snowflake AI Data Cloud, customers can manage Snowflake Observe observability across their organizations—from terabytes to petabytes—using AI-assisted workflows.
Jeremy Burton, CEO of Observe, describes observability as a fundamental data problem. Joining Snowflake is a natural evolution that accelerates Observe’s enterprise-grade observability solution. As AI reshapes how applications are built, the bottleneck has shifted from code development to operational troubleshooting and production reliability. The combination of Observe’s AI-driven SRE and the Snowflake AI Data Cloud delivers faster insights, higher reliability, and substantially better economics.
Analyst Sanjeev Mohan of SanjMo notes that Snowflake’s acquisition reflects a broader industry trend where the lines between data platforms and observability platforms are blurring. Telemetry is increasingly treated as core data within modern platforms, allowing organizations to leverage existing cost controls and AI capabilities to change how they build and operate IT environments.
Once the acquisition closes, Snowflake intends to deepen its commitment to helping customers build and operate reliable AI applications and autonomous systems. Observe’s developer-friendly workflows complement Snowflake’s workload engines by providing real-time context, faster root-cause analysis, and AI-assisted troubleshooting. The move also expands Snowflake’s footprint in the IT operations market, which analysts report is growing rapidly and surpassed a significant market valuation in recent years.
With Snowflake Observe, Snowflake takes a decisive step toward unifying data, AI, and operations on a single platform—laying the groundwork for the next generation of enterprises where observability is an integral part of business strategy.