{"id":643378,"date":"2024-11-05T03:00:46","date_gmt":"2024-11-05T00:00:46","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/datadog-challenger-dash0-aims-to-dash-observability-bill-shock\/"},"modified":"2024-11-05T03:00:46","modified_gmt":"2024-11-05T00:00:46","slug":"datadog-challenger-dash0-aims-to-dash-observability-bill-shock","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/datadog-challenger-dash0-aims-to-dash-observability-bill-shock\/","title":{"rendered":"#Datadog challenger Dash0 aims to dash observability bill shock"},"content":{"rendered":"<div>\n<p id=\"speakable-summary\" class=\"wp-block-paragraph\">The end of zero-interest rates has driven companies to look for savings wherever they can, but one area continues to be a major budget drain. Observability \u2014 collecting and understanding data and systems \u2014 typically remains an organization\u2019s second-highest cloud expenditure, right after cloud provisioning itself. People have even gone so far as to talk of an <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/mattklein123.dev\/2024\/04\/03\/observability-cost-crisis\/\">observability cost crisis<\/a>, underscored by anecdotes like Coinbase spending <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blog.pragmaticengineer.com\/datadog-65m-year-customer-mystery\/\">$65 million on its Datadog bill<\/a>.\u00a0<\/p>\n<p class=\"wp-block-paragraph\">And why is observability so pricey and important? Complex cloud architectures and microservices are here to stay, and with security issues and service outages all too common, ops teams need observability data to keep systems running. <\/p>\n<p class=\"wp-block-paragraph\">Now a startup called <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.dash0.com\/\">Dash0<\/a> is launching to address the cost issue \u2014 if not by being cheaper, then by at least making buying and paying for their services easier. <\/p>\n<p class=\"wp-block-paragraph\">Dash0 \u2014 pronounced \u201cDash-zero\u201d \u2014 is a Datadog competitor whose pitch doesn\u2019t revolve around drastically lowering observability costs. Founder Mirko Novakovic (left in the picture above), still expects companies to spend 10% to 20% of cloud costs on this budget item. But he and his team want to improve transparency, both in terms of pricing and of observability itself.<\/p>\n<p class=\"wp-block-paragraph\">Dash0 says it can do this by way of how it\u2019s built, by fully leveraging the open-source observability framework OpenTelemetry (aka OTel), Novakovic told TechCrunch, which includes a feature called <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/opentelemetry.io\/docs\/concepts\/semantic-conventions\/\">Semantic conventions<\/a> that allows someone, \u201cat any given time, [to] see exactly which service or which developer or which <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lication creates how much cost on the observability side,\u201d he said. <\/p>\n<p class=\"wp-block-paragraph\">There are other companies, such as Signoz, that describe themselves as OTel-native, but Dash0\u2019s positioning has resonated with investors. It raised a $9.5 million seed funding round led by Accel, with participation from Dig Ventures, the investment firm of MulesSoft founder Ross Mason. <\/p>\n<p class=\"wp-block-paragraph\">Novakovic\u2019s track record may have also helped. His previous company, Instana, also backed by Accel, was acquired by IBM at the end of 2020 for $500 million, a price that has never been publicly disclosed before now. Several other Instana alums are also now part of the Dash0 team. <\/p>\n<p class=\"wp-block-paragraph\">If Dash0 is built on OTel, it\u2019s also trying to improve it. The framework has actually been around since 2019, but \u201cit is not that easy to use at the moment,\u201d Novakovic said. \u201cVendors have to do a lot of work in making sure that it gets at least as easy as installing a Datadog agent. That\u2019s where we are still lagging behind the proprietary folks.\u201d<\/p>\n<p class=\"wp-block-paragraph\">As a company, Dash0 hopes to unlock OTel\u2019s benefits \u2014 vendor-agnostic standardized data \u2014 but with an intuitive UI, dashboards, and integrations with Slack, email and other tools. Its initial target customers are companies that have between 50 and 5,000 employees.<\/p>\n<p class=\"wp-block-paragraph\">The company is now launching publicly, but it won\u2019t heavily invest in sales and marketing until it is sure it has hit product-market fit. In the meantime, Novakovic said, its resources will go towards growing the tech and product side of its team, which now consists of 21 people, of whom 19 are engineers, all working remotely.\u00a0<\/p>\n<p class=\"wp-block-paragraph\">Its next 10 hires will also include a developer relations specialist who will also contribute to driving the adoption of OpenTelemetry as a solid alternative to proprietary options. On that front, the company intends to work with other OTel-related startups while making sure that \u201cmissing parts\u201d like dashboards and query languages fall into place with projects like Perses and PromQL. \u201cThat\u2019s a community effort together with the customers,\u201d Novakovic said.<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMN63nwsw68G3Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/technology\/\" target=\"_blank\" rel=\"noopener\">Technology<\/a><\/span> category.<\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/techcrunch.com\/2024\/11\/04\/datadog-challenger-dash0-aims-to-dash-observability-bill-shock\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The end of zero-interest rates has driven companies to look for savings wherever they can, but one area continues to be a major budget drain. Observability \u2014 collecting and understanding data and systems \u2014 typically remains an organization\u2019s second-highest cloud expenditure, right after cloud provisioning itself. People have even gone so far as to talk&#8230;<\/p>\n","protected":false},"author":1,"featured_media":643379,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/techcrunch.com\/wp-content\/uploads\/2024\/11\/Dash0-Founders.jpg?resize=1200,800","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[75885,152586,74839,152587,152588,70917],"class_list":["post-643378","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-enterprise","tag-cloud-cost-management","tag-fundraising","tag-observability","tag-opentelemetry","tag-startups"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/643378","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=643378"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/643378\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/643379"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=643378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=643378"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=643378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}