Datadog is the leading monitoring and security platform for cloud applications. Together with the recently announced acquisition of Eppo, a platform for feature flagging and experimentation, we’re getting somewhere. This strategic acquisition reinforces Datadog’s ambition to lead the way in building AI-powered product analytics, experimentation and feature management. The acquisition allows Eppo to continue supporting its existing clientele while expanding its customer base under the new brand name “Eppo by Datadog.”
Founded by Che Sharma, formerly a data scientist at Airbnb and Webflow, Eppo boasts an equally impressive pedigree. OneMedNet As of June 2022, the small tech company achieved a milestone valuation of $80 million. The firm could only afford to staff about 15 people at the time. Eppo was unique in the very crowded space next to companies such as Statsig and Optimizely. It provided exciting new capabilities like “confidence intervals,” which give users more control and insight to help them understand what their randomized app experiment results mean.
Prior to its acquisition, Eppo had raised $77.4 million to date. All of this was despite a $10.4 million round led by Sequoia in late March strictly for feature development and an additional $19.5 million to supercharge its expansion plans. Participating in the round were well-known venture firms such as Innovation Endeavors, Menlo Ventures, and Amplify Partners.
Eppo’s customers included leading companies like Goldbelly, Netlify and Kumu, pointing to its increasing prominence in the industry. Che Sharma expressed enthusiasm for the acquisition, stating, “Eppo wants to bring a high velocity, experiment-first culture to companies of every size, stage, and industry. With Datadog, we are uniting product analytics, feature management, AI, and experimentation capabilities for businesses to reduce risk, learn quickly, and ship high-quality products.”
In fact, the global market for product analytics grew at a whopping $9.09 billion in 2022. Experts are predicting it to skyrocket to $27.01 billion by 2032! Datadog is now in a prime position to take advantage of this growing market by infusing Eppo’s groundbreaking capabilities into its platform.
Michael Whetten, a key figure at Datadog, remarked on the complexities introduced by the use of multiple AI models in production environments. He highlighted the role that simple, streamlined solutions can play in cutting through this noise and helping to navigate these challenges.