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Datadog inks a strategic partnership with AWS as APM market booms

Datadog is one of four APM leaders, as seen by Gartner

A new strategic partnership with AWS is a major win for Datadog – the cloud monitoring and security platform – with the two promising to “work together to develop and deliver tighter product alignment in the future.”

The deal, announced on January 5, 2022, comes after Datadog in June 2020 rolled out an AWS 1-click integration designed to let users check performance and map behaviour of AWS services powering customer applications via one dashboard that captures services ranging from RDS to EC2, Elasticache, and beyond.

It followed that with a new Microsoft partnership in 2021 that embeds Datadog into the Azure portal.

Datadog is part of a growing application performance monitoring (APM) market, with Gartner considering its leaders to be Dynatrace, Cisco’s AppDynamics, NewRelic and Datadog itself. (Other players competing in the application performance monitoring space include Aternity, Splunk, Elastic, IBM’s Instana, and ManageEngine.)

(Gartner said the company "collects, prepares and presents the telemetry data by assembling log, metrics and traces into a single context with drill-down capabilities that assist in reducing incident response time" and praises its transparent prices and product development, but notes in its APM Magic Quadrant that Datadog does not offer an on-premises deployment and that "many larger Datadog deals are based on a draw-down contract, with a large committed spend upfront. This poses difficulties for clients uncertain about growth and utilization rates, and can lead to over- or underprovisioning.")

See also: 7 free, enterprise-ready cybersecurity tools

Datadog provides infrastructure monitoring, log analysis solution, network monitoring, “digital experience monitoring” (DEM) and, most recently, a security analysis tool.

It competes in an increasingly competitive space and the partnership with the world’s largest public cloud provider – AWS currently boasts well over a million active users and generated $16.11 billion in Q3 alone of 2021 – positions it nicely for even deeper integrations and what both described as “joint marketing and co-selling programs between Datadog and AWS.

The deal comes after Datadog in November 2021 reporter Q3 earnings of $270 million, up 75% on-year.

The company describes itself as “used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations, security and business teams, accelerate time to market for applications, reduce time to problem resolution, secure applications and infrastructure, understand user behavior and track key business metrics.”

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