By the numbers: 61%: Datadog’s third quarter 2022 financials were impressive – revenue hit $436.5 million, up 61% year-over-year.
Power moves: Datadog has been on an acquisition spree. Over the past couple of years, it scooped up Undefined Labs (a testing and observability company for developer workflows), Timber Technologies and Sqreen (observability data stream processing and application security). On Nov. 3, it acquired Cloudcraft, a visualization service for cloud and system architects.
Outlook: Datadog is aggressively adding new features, such as cloud cost management, continuous testing for web app developers, cloud security management and data stream monitoring. Gartner adds, “In recent years, it has significantly expanded its portfolio of solutions beyond infrastructure, log management and APM to include network monitoring, incident management, digital experience monitoring (DEM), database monitoring and security. Future areas of investment include enhancements to end-to-end visibility, improving the developer experience, telemetry governance, and DevSecOps and cloud security.”
9. New Relic: Leading the charge on consumption-based pricing
Why they’re here: New Relic is a power player in the observability market, offering an integrated, full-stack platform that encompasses the monitoring of logs, networks, applications, infrastructure, Kubernetes environments, mobile devices, browsers and developer code. New Relic is a leader in Gartner’s ranking of APM vendors. GigaOm adds, “New Relic has outstanding capabilities in the key criteria of reporting and dashboard capabilities, user interaction performance, and multicloud resource view. New Relic’s OpenTelemetry capabilities and contributions place it ahead of many of its competitors.”
Power moves: New Relic has become a disruptor with a pricing model based on the number of users and volume of data.
By the numbers: 16%: Revenue for the second quarter of fiscal 2023 hit $226.9 million, up 16% from a year ago.
Outlook: New Relic’s transition from subscription to consumption pricing was a bit rocky, but analysts say the worst is behind the company and the outlook appears promising. “It looks like New Relic is seeing the light at the end of the tunnel after enduring a longer-than-expected transformation,” said analyst Holger Mueller of Constellation Research. Gartner agrees: “New Relic offers a clearly differentiated and disruptive pricing model that has contributed to its recent growth in the number of accounts. Pricing is based on the number of users and the volume of telemetry ingested, which overcomes many of the challenges associated with element-based pricing. This model is increasingly resonating with clients looking to manage ever-increasing monitoring bills.”
10. Kentik: AIOps targeted at the network
Why they’re here: This SaaS-based startup is making waves by drilling down on network observability and delivering an AIOps solution designed to help network execs “answer any question about the network.” The idea is to aggregate telemetry across all networks (cloud, on-prem, edge) and network elements, then enrich that data with other types of information (user, application, customer, threat intelligence, physical location) in order to provide network troubleshooting, optimization, automation, DDOS protection and digital experience management (DEM).
By the numbers: $40 million: Raised $40 million in its latest round of venture capital funding, bringing the company’s total funding to $102 million.
Power moves: Kentik has partnered with innovative vendors such as Cloudflare and New Relic to drive its technology into new markets.
Outlook: Kentik CEO Avi Freedman says the company plans to stick to its current business model, and is not planning to move into other areas, such as APM. But it is continuing to innovate. The company recently announced the Kentik Kube, which relies on a lightweight agent to provide complete visibility and context for traffic performance into Kubernetes clusters.