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Datadog Introduces LLM Observability and Other New Capabilities

Datadog announced a new strategic collaboration agreement (SCA) with Amazon Web Services (AWS) and showcased multiple product launches across AI, observability and security to help organizations running on AWS monitor, optimize and secure their cloud environments.

“These launches further extend Datadog’s ability to deliver AI-powered observability and security at scale. They cover all aspects of a customer’s tech stack, including LLM and agentic applications, cloud object storage, and containerized and serverless infrastructure, so that joint customers can migrate to and manage their AWS, hybrid and multi-cloud environments with confidence,” said Yanbing Li, Chief Product Officer at Datadog.

The new Datadog product capabilities for joint AWS customers showcased at re:Invent include:

  • LLM Observability: Monitor, operate and debug agent workflows for both Amazon Bedrock Agents and Strands Agents Framework.
  • Storage Management: Get granular visibility into Amazon S3 buckets and prefixes, enabling teams to eliminate waste and prevent unexpected cloud object storage spend.
  • Datadog MCP Server Integration with AWS DevOps Agent (in Preview): Automate incident resolution by enabling AWS DevOps Agent to query Datadog logs, metrics, and traces during investigations.
  • Support for Datadog MCP Server in Kiro (in Preview): Fix bugs more effectively within your IDE by giving Kiro full Datadog context including errors, recent deployments, linked tickets, and more.
  • New Kiro power from Datadog (in Preview): Specialize your Kiro agents for observability use cases by one-click download of MCP server and steering files for use in Kiro to enable debugging of production issues and develop better code.
  • Support for AWS Lambda Managed Instances (in Preview): Gain full visibility into AWS Lambda functions running on EC2.
  • Support for Amazon Elastic Container Service (ECS) Managed Instances (in Preview): Monitor and troubleshoot workloads running on Amazon ECS Managed Instances.
  • Support for Amazon ECS Express Mode: Gain visibility into containers running on ECS Express Mode.
  • Bits AI Serverless Remediation (in Preview): Troubleshoot issues running serverless applications on AWS with AI-augmented remediation.
  • Bits AI Kubernetes Active Remediation: Accelerate issue resolution for Amazon EKS workloads with AI-guided, evidence-based recommendations.
  • AWS Lambda Cost Recommendations: Automatically identify savings opportunities for AWS Lambda, such as optimizing provisioned concurrency or deleting redundant Amazon CloudWatch logs in AWS Lambda.
  • Amazon Relational Database Service (Amazon RDS) Instance Recommendations: Automatically source optimizations for Amazon RDS instances, such as when an instance has low disk space, high disk queue depth, or read-only traffic.
  • Observability Pipelines Packs for AWS (in Preview): Speed up data processing with predefined, ready-to-use Packs for Amazon Virtual Private Cloud (Amazon VPC), AWS CloudTrail and Amazon CloudFront.
  • Observability Pipelines S3 Log Rehydration (in Preview): Quickly access and reprocess historical logs from Amazon S3 to any destination.

As part of an ongoing commitment to deliver value to joint customers, Datadog has also signed a new Strategic Collaboration Agreement (SCA) with AWS. Through deeper collaboration with AWS on solution development, AWS Marketplace availability and go-to-market programs, Datadog will help customers de-risk cloud migrations, accelerate modernization, secure AWS and multi-cloud environments, and confidently deploy GenAI capabilities on AWS. Datadog’s collaboration spans all regions and industries, including public sector, enterprise and ISVs, and strengthens Datadog’s position as a strategic partner of AWS.

“As cloud-native applications and AI workloads accelerate, observability and security across AWS environments are top of mind for enterprise customers,” said Jarrod Buckley, Vice President of Channels and Alliances at Datadog. “Expanding our global collaboration with AWS enables continued innovation to help customers become more resilient, reduce risk, and achieve time-to-value faster.”

“AWS is committed to working with partners like Datadog to help customers innovate and succeed in the AI era,” said Chris Grusz, Managing Director, Technology Partnerships at AWS. “As organizations increasingly rely on AI-powered applications, observability has become essential for ensuring performance, reliability and cost optimization at scale. Through this strategic collaboration and new integrations with AWS services, we’re making it easier for customers to gain deep insights into their AWS infrastructure and applications, enabling them to build with confidence and accelerate their AI initiatives."

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Datadog Introduces LLM Observability and Other New Capabilities

Datadog announced a new strategic collaboration agreement (SCA) with Amazon Web Services (AWS) and showcased multiple product launches across AI, observability and security to help organizations running on AWS monitor, optimize and secure their cloud environments.

“These launches further extend Datadog’s ability to deliver AI-powered observability and security at scale. They cover all aspects of a customer’s tech stack, including LLM and agentic applications, cloud object storage, and containerized and serverless infrastructure, so that joint customers can migrate to and manage their AWS, hybrid and multi-cloud environments with confidence,” said Yanbing Li, Chief Product Officer at Datadog.

The new Datadog product capabilities for joint AWS customers showcased at re:Invent include:

  • LLM Observability: Monitor, operate and debug agent workflows for both Amazon Bedrock Agents and Strands Agents Framework.
  • Storage Management: Get granular visibility into Amazon S3 buckets and prefixes, enabling teams to eliminate waste and prevent unexpected cloud object storage spend.
  • Datadog MCP Server Integration with AWS DevOps Agent (in Preview): Automate incident resolution by enabling AWS DevOps Agent to query Datadog logs, metrics, and traces during investigations.
  • Support for Datadog MCP Server in Kiro (in Preview): Fix bugs more effectively within your IDE by giving Kiro full Datadog context including errors, recent deployments, linked tickets, and more.
  • New Kiro power from Datadog (in Preview): Specialize your Kiro agents for observability use cases by one-click download of MCP server and steering files for use in Kiro to enable debugging of production issues and develop better code.
  • Support for AWS Lambda Managed Instances (in Preview): Gain full visibility into AWS Lambda functions running on EC2.
  • Support for Amazon Elastic Container Service (ECS) Managed Instances (in Preview): Monitor and troubleshoot workloads running on Amazon ECS Managed Instances.
  • Support for Amazon ECS Express Mode: Gain visibility into containers running on ECS Express Mode.
  • Bits AI Serverless Remediation (in Preview): Troubleshoot issues running serverless applications on AWS with AI-augmented remediation.
  • Bits AI Kubernetes Active Remediation: Accelerate issue resolution for Amazon EKS workloads with AI-guided, evidence-based recommendations.
  • AWS Lambda Cost Recommendations: Automatically identify savings opportunities for AWS Lambda, such as optimizing provisioned concurrency or deleting redundant Amazon CloudWatch logs in AWS Lambda.
  • Amazon Relational Database Service (Amazon RDS) Instance Recommendations: Automatically source optimizations for Amazon RDS instances, such as when an instance has low disk space, high disk queue depth, or read-only traffic.
  • Observability Pipelines Packs for AWS (in Preview): Speed up data processing with predefined, ready-to-use Packs for Amazon Virtual Private Cloud (Amazon VPC), AWS CloudTrail and Amazon CloudFront.
  • Observability Pipelines S3 Log Rehydration (in Preview): Quickly access and reprocess historical logs from Amazon S3 to any destination.

As part of an ongoing commitment to deliver value to joint customers, Datadog has also signed a new Strategic Collaboration Agreement (SCA) with AWS. Through deeper collaboration with AWS on solution development, AWS Marketplace availability and go-to-market programs, Datadog will help customers de-risk cloud migrations, accelerate modernization, secure AWS and multi-cloud environments, and confidently deploy GenAI capabilities on AWS. Datadog’s collaboration spans all regions and industries, including public sector, enterprise and ISVs, and strengthens Datadog’s position as a strategic partner of AWS.

“As cloud-native applications and AI workloads accelerate, observability and security across AWS environments are top of mind for enterprise customers,” said Jarrod Buckley, Vice President of Channels and Alliances at Datadog. “Expanding our global collaboration with AWS enables continued innovation to help customers become more resilient, reduce risk, and achieve time-to-value faster.”

“AWS is committed to working with partners like Datadog to help customers innovate and succeed in the AI era,” said Chris Grusz, Managing Director, Technology Partnerships at AWS. “As organizations increasingly rely on AI-powered applications, observability has become essential for ensuring performance, reliability and cost optimization at scale. Through this strategic collaboration and new integrations with AWS services, we’re making it easier for customers to gain deep insights into their AWS infrastructure and applications, enabling them to build with confidence and accelerate their AI initiatives."

The Latest

Enterprises are under pressure to scale AI quickly. Yet despite considerable investment, adoption continues to stall. One of the most overlooked reasons is vendor sprawl ... In reality, no organization deliberately sets out to create sprawling vendor ecosystems. More often, complexity accumulates over time through well-intentioned initiatives, such as enterprise-wide digital transformation efforts, point solutions, or decentralized sourcing strategies ...

Nearly every conversation about AI eventually circles back to compute. GPUs dominate the headlines while cloud platforms compete for workloads and model benchmarks drive investment decisions. But underneath that noise, a quieter infrastructure challenge is taking shape. The real bottleneck in enterprise AI is not processing power, it is the ability to store, manage and retrieve the relentless volumes of data that AI systems generate, consume and multiply ...

The 2026 Observability Survey from Grafana Labs paints a vivid picture of an industry maturing fast, where AI is welcomed with careful conditions, SaaS economics are reshaping spending decisions, complexity remains a defining challenge, and open standards continue to underpin it all ...

The observability industry has an evolving relationship with AI. We're not skeptics, but it's clear that trust in AI must be earned ... In Grafana Labs' annual Observability Survey, 92% said they see real value in AI surfacing anomalies before they cause downtime. Another 91% endorsed AI for forecasting and root cause analysis. So while the demand is there, customers need it to be trustworthy, as the survey also found that the practitioners most enthusiastic about AI are also the most insistent on explainability ...

In the modern enterprise, the conversation around AI has moved past skepticism toward a stage of active adoption. According to our 2026 State of IT Trends Report: The Human Side of Autonomous AI, nearly 90% of IT professionals view AI as a net positive, and this optimism is well-founded. We are seeing agentic AI move beyond simple automation to actively streamlining complex data insights and eliminating the manual toil that has long hindered innovation. However, as we integrate these autonomous agents into our ecosystems, the fundamental DNA of the IT role is evolving ...

AI workloads require an enormous amount of computing power ... What's also becoming abundantly clear is just how quickly AI's computing needs are leading to enterprise systems failure. According to Cockroach Labs' State of AI Infrastructure 2026 report, enterprise systems are much closer to failure than their organizations realize. The report ... suggests AI scale could cause widespread failures in as little as one year — making it a clear risk for business performance and reliability.

The quietest week your engineering team has ever had might also be its best. No alarms going off. No escalations. No frantic Teams or Slack threads at 2 a.m. Everything humming along exactly as it should. And somewhere in a leadership meeting, someone looks at the metrics dashboard, sees a flat line of incidents and says: "Seems like things are pretty calm over there. Do we really need all those people?" ... I've spent many years in engineering, and this pattern keeps repeating ...

The gap is widening between what teams spend on observability tools and the value they receive amid surging data volumes and budget pressures, according to The Breaking Point for Observability Leaders, a report from Imply ...

Seamless shopping is a basic demand of today's boundaryless consumer — one with little patience for friction, limited tolerance for disconnected experiences and minimal hesitation in switching brands. Customers expect intuitive, highly personalized experiences and the ability to move effortlessly across physical and digital channels within the same journey. Failure to deliver can cost dearly ...

If your best engineers spend their days sorting tickets and resetting access, you are wasting talent. New global data shows that employees in the IT sector rank among the least motivated across industries. They're under a lot of pressure from many angles. Pressure to upskill and uncertainty around what agentic AI means for job security is creating anxiety. Meanwhile, these roles often function like an on-call job and require many repetitive tasks ...