Observability platform — monitors infrastructure, apps, logs & security across cloud (DevOps monitoring)
AI exposure 15% — derived from reported segment revenue, not asserted.
Software Stack → Data & Infrastructure Software · figures rebased to Q2 2026, reported 2026-08-06
Infrastructure monitoring + APM (application performance) — the core observability leads 2 businesses in this sub-tier that together are 100% of revenue, so Data & Infrastructure Software is effectively the whole company rather than one leg of it.
Datadog ($1.12B Q2 2026, +36% YoY) — observability platform. Infrastructure monitoring + APM ~65% (the core) + logs/security/LLM-observability ~35% (multi-product; ~83% customers use 2+). Primary B5 Data & Infrastructure Software. NICHE: observability/monitoring (real-time health & performance of apps + infrastructure). Competes New Relic/Dynatrace/Splunk; monitors hyperscaler clouds; serves DevOps/engineering.
Moat. Observability-platform lock-in (multi-product + data-gravity, ~83% use 2+ products) + the system-of-record for app/infra health; sticky DevOps franchise.
Bottleneck / pricing power. Real switching costs from data gravity and multi-product attach, but pricing power is weaker than the old note claimed because consumption is the meter: the largest AI-native account guided its own H2 activity down materially, and $100K+ ARR customers grew 23% against 36% revenue growth — the arithmetic tell that a small number of very large accounts carried the quarter. Datadog sets the rate card; the customer sets the volume.
Role in the AI stack. The observability (app/infra + LLM monitoring) layer.
All 174 companies · What moved this quarter · How the map is built