Datadog Acquires Eppo for $220M — Merging Observability with Experimentation

Datadog is no longer just watching your systems—it’s helping you improve them.

In its third acquisition of 2025, Datadog has bought A/B testing startup Eppo for $220 million, signaling a strategic shift into experimentation and deployment intelligence. This move underscores a broader DevOps trend: observability alone isn’t enough—data must drive action.

Founded in 2020, Eppo enables large-scale product and infrastructure experiments for high-growth companies. With this acquisition, Datadog aims to build a full-stack platform that empowers teams to both monitor and optimize in real-time.

Why Eppo? Why Now?

As software teams demand faster iteration and smarter deployment, experimentation tools are moving from the product team’s corner into the core of the DevOps pipeline.

Eppo’s platform helps companies test everything—from frontend UI changes to backend infra shifts—with precision and statistical rigor. The appeal? Make confident decisions without waiting weeks to interpret usage logs or customer feedback.

For Datadog, this is a natural next step: plug experimentation into its observability suite and offer a closed feedback loop between monitoring and action.

What This Means for DevOps

This deal goes beyond adding a feature—it redefines the category.

• From observability to optimization: Monitoring alone doesn’t improve user experience. With Eppo’s tools, Datadog users can now test changes and measure impact instantly.
• Infrastructure-level A/B testing: Eppo wasn’t just built for product teams. It’s designed to let infra engineers test changes to systems performance, deployment strategies, and more.
• Platform consolidation continues: This acquisition aligns with a broader industry trend—companies want fewer tools that do more. Datadog now competes more directly with the likes of LaunchDarkly and New Relic, aiming to be a one-stop platform for modern DevOps workflows.

Strategic Voices

Olivier Pomel, CEO of Datadog, has hinted before at expanding the company’s “actionability” layer. This acquisition delivers just that.

Meanwhile, Chetan Sharma, Eppo’s CEO, emphasized the growing need to experiment responsibly in high-stakes environments. With Datadog’s infrastructure footprint, Eppo’s capabilities can now operate at massive scale, reaching customers across observability, infra, and engineering stacks.

Bigger Picture: DevOps is Getting Smarter

2025 has seen a surge in platform convergence in DevOps. From GitHub expanding CI/CD to monitoring platforms adding AI-driven diagnostics, the boundaries between observability, deployment, and experimentation are fading.

Datadog’s acquisition of Eppo puts it at the forefront of this shift.

The message? It’s not enough to monitor systems—you need to experiment, learn, and adapt—all within the same platform.

From insight to impact, Datadog wants to own the whole loop.

Sources: Datadog