Introduction
In today’s digital landscape, companies are constantly seeking ways to optimize their cloud expenditures. However, one area that continues to be a major budget drain is observability – collecting and understanding data and systems. According to recent reports, observability costs often account for 10% to 20% of cloud expenses, making it an issue that needs immediate attention.
The Problem with Observability
Complex cloud architectures and microservices have become the norm in modern technology. As a result, security issues and service outages are increasingly common. To mitigate these problems, ops teams rely heavily on observability data to keep systems running smoothly. However, this reliance comes at a cost.
The Anecdote of Coinbase
A notable example of the high costs associated with observability is Coinbase’s $65 million Datadog bill. This staggering expense highlights the significant financial burden that companies can face when trying to collect and understand their data.
Enter Dash0: A New Player in Observability
In response to this growing concern, a new startup called Dash0 has emerged with the goal of addressing the cost issue associated with observability. Founded by Mirko Novakovic, who previously led the acquisition of Instana by IBM for $500 million, Dash0 aims to improve transparency in both pricing and observability itself.
The Importance of OpenTelemetry
Dash0’s pitch revolves around leveraging the open-source observability framework OpenTelemetry (OTel). This technology allows companies to collect standardized data from various sources, making it easier to analyze and understand their systems. However, Novakovic acknowledges that OTel still has room for improvement.
The Challenge of Implementing OpenTelemetry
While OpenTelemetry offers numerous benefits, its implementation can be complex and time-consuming. Vendors often struggle to make the framework as user-friendly as proprietary solutions like Datadog. Dash0 aims to change this by developing an intuitive UI, dashboards, and integrations with popular tools such as Slack and email.
Dash0’s Approach
To tackle the observability cost crisis, Dash0 is focusing on improving transparency in two key areas:
- Pricing: By making pricing more transparent, companies can better understand their expenses and make informed decisions.
- Observability itself: By providing a user-friendly interface for collecting and analyzing data, Dash0 hopes to reduce the costs associated with observability.
The Role of OpenTelemetry
As an OTel-native company, Dash0 is committed to unlocking the benefits of vendor-agnostic standardized data. However, Novakovic recognizes that more work needs to be done to make OTel as easy to use as proprietary solutions.
Dash0’s Growth Plans
With a $9.5 million seed funding round led by Accel, Dash0 is poised for growth. The company plans to expand its team and invest in product development while awaiting product-market fit. Its initial target customers are companies with between 50 and 5,000 employees.
The Future of Observability
Dash0’s launch marks a significant step towards addressing the observability cost crisis. By leveraging OpenTelemetry and providing a user-friendly interface for collecting and analyzing data, Dash0 aims to make observability more accessible and affordable for companies of all sizes.
Conclusion
In conclusion, the observability cost crisis is a pressing issue that requires immediate attention. With its innovative approach and commitment to transparency, Dash0 has emerged as a promising solution. As the tech industry continues to evolve, it’s essential to address this challenge head-on. With Dash0 at the forefront of this effort, we can expect significant changes in the world of observability.
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