The venture capital community’s appetite for cloud management startups shows no sign of abating. Following closely behind a series of investments in cross-provider security vendors, Datadog Inc. has landed $31 million in an oversubscribed round of funding to drive the adoption of its multi-platform monitoring service.
The five-year-old outfit promises to provide a complete view of an organization’s environment across multiple clouds, applications and even on-premise systems. There are multiple other emerging players touting similar value propositions, notably Stackify Inc. and Cloudyn Inc. – which nabbed $4 million in financing last September – but Datadog nonetheless manages to stand out from the pack, mainly by virtue of breadth.
Its namesake service provides built-in integration with over 100 third party services and technologies ranging from major public clouds to popular open-source projects. Datadog also enables developers to stream data from competing monitoring services that are already implemented in their environments and blend it with direct metrics to put together what it touts as a more complete picture of operations in a single view that encompasses alerts, usage analytics, performance metrics, configuration tracking and other information from both cloud and on-premise services.
To round out the package, the service packs an array of analytic features meant to help users act on that insight and correlate different data points such as uptime and traffic spikes to identify important patterns. It also provides the ability to track updates back to the source, a feature meant to ease the burden of dealing with unexpected bugs, which can become a major nuance in modern cloud development environments that produce upwards of hundreds of changes a day.
That one-stop-shop proposition has brought Datadog a long way since it hit generally availability in 2013, attracting thousands of clients including Spotify Inc., Electronic Arts, Inc and Netflix Inc. (which usually develops its own operational tools) along with many smaller companies. The new funding is designed to sustain that momentum into 2015.
Existing backer Index Ventures, known for its investments in such success stories as Facebook and Box Inc., led the round while RTP Ventures, Openview Venture Partners, Amplify Partners and several other unnamed investors also took the opportunity to increase their stakes in the startup. Datadog plans to spend the new capital, which bumps its total raised past the $50 million mark, on hiring more engineers and step up customer acquisition efforts.