Observe continues to adapt to the changing world of software observability

Founded in 2017, Observe has evolved in tandem with the rapidly changing landscape of software observability. As companies increasingly release updates and generate vast amounts of data, the San Mateo-based platform is now pivoting to embrace the transformative power of artificial intelligence. Observe provides organizations with critical insights into their software operations, enabling engineers to quickly identify and address disruptions. However, the rise of AI presents both opportunities and challenges. The integration of AI-driven tools into Observe's product suite aims to expedite issue identification and resolution. Yet, as software deployment accelerates and data volumes surge, the complexity of observability also intensifies. CEO Jeremy Burton highlighted the potential complications of an AI-driven future, predicting a scenario where numerous agents operate within networks, leading to intricate interactions. "In a few years, you’re going to have hundreds or thousands of agents on your network that are all interacting with employees or interacting with each other," he explained. "That’s all great until something goes wrong, and you’ve got to try and, you know, do a Sherlock Holmes and figure out who done it, you know?" To adapt to these evolving demands, Observe recently introduced the Model Context Protocol (MCP) server, designed to provide developers with seamless access to observability data from AI coding tools and large language models. This initiative aligns with the company's commitment to streamline workflows for developers. Burton noted that clients are already experimenting with radical new processes using the MCP server, allowing them to integrate observability directly into their development environments. Additionally, Observe is working on supporting Apache Iceberg, an open-source data table format that empowers businesses to manage and standardize their data. Burton expressed optimism about this approach, anticipating that support for Iceberg will be available by year-end. The company has seen impressive growth, with revenue nearly tripling in 2024 and a 93% customer retention rate. Notable clients include CapitalOne, Paramount, and Dialpad. Recently, Observe secured $156 million in a Series C funding round led by Sutter Hill Ventures, with contributions from Madrona Ventures and strategic investors like Snowflake. The funds will be directed towards research, development, and hiring initiatives, as the company prepares to launch its private preview for Apache Iceberg support. "We’ve got a couple of really good things out there, but I feel like we’ve just gotten started," Burton stated, emphasizing the company’s ambitious trajectory.