Datadog Inc., a rising star in the burgeoning cloud monitoring space, has bought out a fellow New York analytics startup to provide a broader view of infrastructure and applications. No financial terms were disclosed, but it’s safe to assume a substantial part of the capital for the purchase came from the $31 million funding round Datadog revealed at the end of last month.
A group of existing investors led by Index Ventures provided the financing with the goal of helping Datadog grow the momentum of its namesake service, which has gained thousands of customers since launching in 2013. The startup is one of several offering enterprises a more comprehensive view of their infrastructure, but it stands out with support for a uniquely broad spectrum of components that the purchase of Mortar Data Inc. is poised to widen even further.
The outfit started out with a cloud-based implementation of Hadoop originally meant to lower the entry barrier for traditional organizations that evolved over the years into a development environment for data scientists to create sophisticated analytic capabilities. Mortar also expanded its focus beyond the open-source project along the way, adding the ability to create pipelines for moving information back and forth among different systems in October, which is likely what motivated the deal.
The ability to easily aggregate metrics from different sources that each have their own specific complexities and requirements is key to Datadog’s value proposition, which hinges on broad support for third party technologies to set itself apart from the equally well-funded competition. The technology that it’s gaining through the deal should make it easier to keep up with the rapid change in the development world and add support for new solutions as they emerge.
However, that’s only one aspect of the deal. Another factor is the fact that Datadog has been leveraging the system internally to build new capabilities for its service, although that’s a less direct influence.
As a monitoring provider, Datadog focuses on supplying customers with ready insights and not helping them dig up that knowledge by themselves, which leaves limited uses for the platform beyond internal development. But with the software comes Mortar’s data talent, which should provide a valuable strategic boost as it works to add more analytics features to its service in order to support the evolving expectations of its widening user base.