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Datadog Signs Cloud-Computing Partnership With Microsoft

By Anders Bylund – Updated Sep 30, 2020 at 2:21PM

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The cloud-computing monitoring expert will get deep integration with the Azure platform, including a direct billing system under Microsoft's wing.

Cloud-computing security and systems-monitoring expert Datadog (DDOG -0.62%) just signed a strategic partnership with technology giant Microsoft (MSFT -0.04%). The deal makes Datadog's tools available to Microsoft Azure customers as a so-called first-class service. Datadog's Azure partnership will launch to the public in October and will be accepting a small number of preview customers in the meantime.

What's new?

Datadog's integration includes an automated setup process that makes it easy to deploy a monitoring service for cloud-computing workloads. Since the tools are presented as native products on the Azure platform, enterprise-class customers will find it easy to apply earmarked budgets and prepaid Azure assets to Datadog monitoring.

Azure users can now deploy Datadog to their cloud-based hosts and web applications in minutes. Log files and performance metrics can be sent to the Datadog platform in a couple of clicks. The system provides an easy-to-use control panel for granular control over what Azure assets Datadog should monitor. Many parts of the monitoring setup can be fully automated.

Through the Azure-based platform, the Datadog services can also monitor the health, security, and performance of assets running on different cloud-computing platforms, and the monitoring tools can work together with competing solutions, such as the open-source automation packages Puppet and Chef.

Close-up of an imminent handshake between two businessmen.

Image source: Getty Images.

The two companies will also align their sales and marketing efforts, cross-promoting Datadog services to other Azure clients and vice versa.

"Observability is a key capability for any successful cloud migration," Datadog's Chief Product Officer Amit Agarwal said in a prepared statement. "Through our new partnership with Microsoft Azure, customers will now have access to the Datadog platform directly in the Azure console."

Datadog's investors were quick to embrace this important partnership. The company's stock jumped more than 15% higher on Wednesday as a reaction to this announcement.

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Anders Bylund has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Datadog and Microsoft and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. The Motley Fool has a disclosure policy.

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