Observe Evolves with the Future of Software Observability
▼ Summary
– Observe, founded in 2017, helps companies monitor their software status to quickly address disruptions and outages.
– The rise of AI presents both opportunities and challenges for Observe, as it speeds up software deployment and increases data volume.
– Observe introduced a Model Context Protocol (MCP) server to integrate observability data with AI tools, streamlining developer workflows.
– The company plans to support Apache Iceberg, an open-source data format, by year-end, aligning with customer preferences for data ownership.
– Observe raised $156 million in Series C funding to invest in R&D and hiring, following significant revenue growth in 2024.
Software observability is undergoing rapid transformation as AI reshapes how companies develop and monitor applications. Observe, a platform founded in 2017, helps businesses track their software performance, enabling engineers to quickly identify and resolve disruptions. With the rise of AI, the company faces both opportunities and challenges, leveraging AI to enhance troubleshooting while managing the explosion of data from faster software deployments.
Based in San Mateo, Observe integrates AI agents into its platform to streamline issue detection and resolution. However, CEO Jeremy Burton notes that AI’s rapid evolution complicates observability further. “In a few years, networks will host hundreds or thousands of AI agents interacting with employees or each other,” he explains. “When something breaks, pinpointing the root cause becomes a detective’s job.”
To stay ahead, Observe introduced its Model Context Protocol (MCP) server, allowing developers to access observability data directly from AI coding tools. This innovation bridges the gap between development environments and troubleshooting, enabling engineers to diagnose issues and suggest fixes seamlessly. Burton describes workflows that were “science fiction a year ago,” where AI analyzes tickets, identifies problematic code, and proposes solutions, all within the developer’s workspace.
The company is also embracing Apache Iceberg, an open-source data format that lets businesses standardize their data ownership. Support for this format is expected by year-end, aligning with customer demand for greater control over their data.
Observe’s growth reflects its adaptability, revenue nearly tripled in 2024, with 93% gross customer retention. Major clients like CapitalOne and Paramount rely on its platform. A recent $156 million Series C funding round, led by Sutter Hill Ventures, will fuel further R&D and hiring. The company plans to launch a private preview for Apache Iceberg support soon, signaling its commitment to innovation.
“We’ve made strong progress, but this is just the beginning,” Burton says, underscoring Observe’s focus on evolving alongside the fast-changing tech landscape.
(Source: TechCrunch)
