Observe: Adapting to the Future of Observability

The Evolution of Observe: Adapting to the Age of AI

Founded in 2017, Observe, an observability platform, emerged to address the evolving demands of modern software monitoring. The increasing frequency of software releases and the subsequent surge in data production necessitated a new approach to understanding system behavior.

Responding to the AI Revolution

Observe is now responding to the latest technological paradigm shift: the rapid advancement and integration of Artificial Intelligence. The company’s core function remains providing businesses with detailed insights into their software’s operational status.

This enhanced visibility empowers engineers to proactively identify and resolve disruptions and outages more efficiently.

AI: A Double-Edged Sword

The recent progress in AI presents both opportunities and challenges for Observe. The platform now incorporates AI agents to accelerate issue identification and remediation for its clientele.

However, the same AI advancements are driving even faster software deployment cycles and an exponential increase in data volume.

Increasing Observability Complexity

According to CEO Jeremy Burton, the continuous development of AI agents is inherently increasing the complexity of observability. He explained to TechCrunch that the future holds a landscape of numerous interacting agents.

“Within a few years, networks could host hundreds, even thousands, of agents communicating with employees or each other,” Burton stated. “While beneficial, diagnosing issues when failures occur will become significantly more challenging, requiring meticulous investigation.”

The Model Context Protocol (MCP) Server

Observe is proactively adapting to these industry changes. Earlier this year, the company launched a Model Context Protocol (MCP) server.

This server enables developers to access their observability data directly from AI coding tools and large language models, integrating seamlessly into their existing workflows.

Radical New Workflows

Burton highlighted the innovative ways customers are already utilizing the MCP server. He described scenarios where developers can task the system with analyzing tickets, identifying the root cause of problems using Observe data, and even suggesting code fixes.

“Such capabilities were considered science fiction just a year ago,” Burton noted.

Supporting Apache Iceberg

Observe is also focused on supporting Apache Iceberg, an open-source data table format. This format allows organizations to maintain ownership and standardize their data assets.

The company anticipates full support for Apache Iceberg by the end of the year, responding to strong customer demand.

Significant Growth and Customer Retention

Observe experienced nearly a tripling of revenue in 2024 and achieved a 93% gross customer retention rate. While specific financial figures remain undisclosed, the company boasts a strong client base.

Notable customers include large enterprises such as CapitalOne, Paramount, and Dialpad.

Series C Funding

The company successfully secured $156 million in a Series C funding round. This round was led by Sutter Hill Ventures, with participation from Madrona Ventures, Alumni Ventures, and strategic investors including Snowflake.

Future Investments

The newly acquired capital will be allocated to research and development initiatives and talent acquisition. Observe is preparing to launch a private preview of its Apache Iceberg support shortly.

“We have made significant strides, but I believe we are only at the beginning of our journey,” Burton concluded.