Inside Datadog: Unifying Cloud Observability and Building Agents to Fix Code

Datadog provides a unified cloud observability and security platform, monetizing through a usage-based, land-and-expand model. Customers ranging from Fortune 500s to AI-native startups purchase the platform to manage the immense complexity of cloud migrations and digital transformation. Leadership is actively prioritizing a shift toward "autonomous operations," moving beyond simply observing systems to proactively fixing them using AI agents.

The company’s core moat is its single-pane-of-glass architecture, which breaks down silos between development, operations, and security teams to eliminate fragmented tool sprawl. This unified platform advantage enables customers to consolidate dozens of tools, giving them immense buying power and reducing resolution times. Leading products include Infrastructure Monitoring, APM, and Log Management, alongside emerging high-growth initiatives like Cloud SIEM, FlexLogs, and the Model Context Protocol (MCP) server for AI agentic workflows.

CEO Olivier Pomel and CTO Alexis Le-Quoc emphasize that Datadog's massive proprietary data repository gives them a unique advantage in training highly accurate, low-cost AI models like their Bits AI SRE Agent. Management is focused on increasing platform stickiness, highlighted by the fact that 18% of their customer base now uses eight or more products.

All sourced directly from Datadog's own leadership at their 2026 Investor Day.