This Wednesday, cloud monitoring and security platform Datadog announced it has acquired Metaplane, an AI-powered data observability startup. Financial details weren't disclosed, with Datadog's blog post focusing on how the acquisition will support the company's expansion into data observability. The company noted that its purchase of Metaplane follows the introduction of two data observability features in the Datadog platform: Data Jobs Monitoring and Data Streams Monitoring.

Metaplane will continue supporting existing and new customers through a rebranded "Metaplane by Datadog" offering, ensuring continuity for current users while expanding Datadog's product portfolio. On a blog post of its own, Metaplane explained that its motivation to join forces with Datadog was an increasingly common concern from its customers: the success of data observability largely "requires connecting the dots across software and data."

Bridging the Gap Between Data and Development Teams

"Observability is no longer just for developers and IT teams; it's now an essential part of data teams' day-to-day responsibilities as they manage increasingly complex and business-critical workflows," said Datadog VP Michael Whetten, highlighting the growing importance of unified observability across applications and data, especially as more organizations deploy AI applications.

Founded in 2020 by MIT graduate Kevin Hu, former HubSpot engineer Peter Casinelli, and ex-Appcues developer Guru Mahendran, Metaplane has developed sophisticated monitoring tools that use anomaly detection AI models trained on historical metadata. The system establishes lineages in data warehouses and alerts stakeholders to issues through integration with tools like Slack and PagerDuty, while continuously learning from user feedback.

Market Expansion Strategy

This acquisition marks Datadog's second this year, following its January purchase of Quickwit, an open-source cloud-native search engine for logs. It also aligns with Datadog's need to diversify revenue streams, particularly after its recent financial reports showed better-than-expected net profit but a full-year 2025 revenue forecast below analyst expectations.

Grand View Research reports that the data observability market, valued at $2.14 billion in 2023, is projected to grow at a 12.2% compound annual rate between 2024 and 2030. Regardless, it is not exactly an unoccupied niche. Datadog faces competition from established players, including Monte Carlo, Cribl, Manta, and Observe.