Disrupting the Observability Market: Doubling Down on Observe

Disrupting Data Observability: Madrona Doubles Down on Observe

Having first met CEO Jeremy Burton in 2017 in Snowflake board meetings, I greatly appreciated his no-nonsense approach to building products that solve customer problems while having a superpower to take that to the market and customers effectively. This admiration for Jeremy’s leadership and strategy was a key reason for Madrona’s initial investment in Observe in 2021. We were captivated by the innovative solutions and the potential disruption they promised in a rapidly expanding market. Today, we are excited to announce Madrona’s participation in Observe’s $115 million Series B financing, underscoring our confidence in Jeremy’s vision and Observe’s approach to navigating and conquering the observability market’s opportunities.

Observe brings together the power of machine-generated data with a new approach and architecture to address the challenges of storing, managing, and analyzing that data. Observe is built on Snowflake. The underlying architecture and the separation of storage and compute allow Observe’s customers to scale quickly and cost-effectively. With other competitors, the costs of observability at scale have become overwhelming.

Observability is a must-have for every organization that wants its applications and systems to run smoothly. Today’s organizations grapple with intricate technology stacks encompassing myriad platforms, tools, multi-cloud environments, hybrid infrastructures, and now the explosion of LLM APIs. When an issue arises, observability goes beyond application monitoring to expose why an incident happened and makes the needed correlations to enable teams to prevent recurrence. Observability has emerged as a critical component in the modern software landscape, keeping applications such as air traffic control, financial systems, and other critical business applications running. Observe’s technology empowers its customers to achieve this at scale without excessive costs or sacrificing performance and functionality.

Observe’s flagship product, the “Data Observability Cloud,” stands out in a crowded field by offering modern cloud observability solutions. It seamlessly ingests a company’s data into a single data lake. Observe then creates a data graph that correlates data across any state at any time, including metrics, logs, traces, tickets, and sessions. Observe builds a graph of related datasets to bring more context into the investigation and manages dashboards, alerts, and datasets to provide real-time notifications and context about errors and bugs. This innovative approach offers unparalleled visibility and context, empowering companies to identify and resolve issues precisely and efficiently.

Observe’s unique modern architecture, characterized by the separation of storage and compute, also sets it apart from its competitors. This architectural advantage not only enhances performance but also drives down costs significantly as companies scale. Traditional tools can incur exorbitant expenses at scale, but Observe remains focused on helping companies analyze data rather than managing it, making it a cost-effective and efficient choice for businesses of all sizes.

With a comprehensive platform spanning log analytics, infrastructure monitoring, application performance management, and CI/CD tracking, we believe Observe is well-positioned to disrupt the burgeoning data observability market. We are already seeing great customer traction, which signals Observe’s potential. We at Madrona are impressed not only by Observe’s growth but also by Jeremy’s proven track record, the high-caliber team he has assembled, and the company’s commitment to disruptive innovation.

We are excited to partner with Jeremy and the Observe team on their mission to become the market leader in observability.

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