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No Priors Ep. 21 | With Datadog Co-founder/CEO Olivier Pomel

Olivier Pomel, co-founder and CEO of Datadog, the leading observability company, discusses the company’s founding story, early product sequencing, platform strategy, and acquisitions. Olivier also shares his thoughts on their more recent expansion into security, and why he’s bullish on the potential for AI in DevOps. ** No Priors is taking a summer break! The podcast will be back with new episodes in three weeks. Join us on July 20th for a conversation with Devi Parikh, Research Director in Generative AI at Meta. ** 00:00 - DevOps and AI Potential 06:54 - Datadog and Generative AI 20:40 - Datadog's Acquisition and Expansion Strategy 31:46 - LLMs in Automation and Precision 42:35 - Datadog's Customer Value and Growth

Elad GilhostOlivier PomelguestSarah Guohost
Jun 14, 202344mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Datadog CEO on AI, observability, security, and disciplined hypergrowth strategy

  1. Olivier Pomel, Datadog’s co-founder and CEO, traces the company’s origins from bridging dev–ops culture gaps to becoming a unified observability and security platform at massive scale. He explains how building from New York, staying close to customer reality, and designing a single integrated platform underpins Datadog’s broad product expansion and efficient, near-profitable growth. A significant portion of the discussion focuses on generative AI: its impact on software workloads, developer productivity, observability, and the emerging LLM tooling stack, as well as Datadog’s cautious, outcome‑driven use of AI in its products. Pomel also details Datadog’s approach to acquisitions, security, customer segmentation, and leadership practices that sustain execution through changing macro and technological environments.

IDEAS WORTH REMEMBERING

5 ideas

Dev–ops collaboration, not metrics, was Datadog’s original core problem to solve.

Datadog began as a way to get development and operations teams seeing the same reality and working together, and only later evolved into the full observability platform most people recognize today.

Operating from New York forced capital efficiency and closer alignment with real customer needs.

Skepticism from Bay Area investors and a smaller local deep-tech pool led Datadog to run near-profitable from early on, focus obsessively on product–market fit, and benefit from higher employee retention versus the Bay Area.

A unified platform is Datadog’s main strategic moat but requires heavy ongoing investment.

Roughly half the company works on the core platform, and every acquisition is re-platformed in year one, which is costly but critical to delivering deeply integrated, end‑to‑end workflows across many product areas.

Generative AI shifts value from writing code to understanding, operating, and securing it.

As developers become far more productive and write more software they understand less deeply, demand grows for tools that help observe, debug, secure, and manage increasingly complex, AI‑augmented systems—exactly the layer Datadog serves.

LLMs open new observability use cases but don’t replace precise numerical methods.

Datadog still relies on classical statistical and numerical models for anomaly detection and alerting, while using LLMs to combine heterogeneous data (metrics, logs, state, docs) into richer insights and explanations where fuzziness is acceptable.

WORDS WORTH SAVING

5 quotes

The starting point for Datadog was not monitoring or even the cloud; it was, “Let’s get dev and ops on the same page.”

Olivier Pomel

If one person is ten times more productive, they’ll write ten times more stuff—but they’ll understand what they write ten times less.

Olivier Pomel

Everybody’s buying security software. Nobody is more secure as a result.

Olivier Pomel

There are great medicines today for security, but for them to work you need to inject them in every single one of your organs every day. We want to deliver it to you in an IV.

Olivier Pomel

With LLMs we clearly have ignition. We might have liftoff soon. The question is whether we need a second stage.

Olivier Pomel

Founding story of Datadog and dev–ops collaboration originsBuilding an infrastructure company from New York and its advantagesDatadog’s unified observability and security platform and product philosophyImpact of generative AI and LLMs on workloads, tooling, and observabilityDatadog’s approach to LLM/AI monitoring, MLOps/LLMOps, and automationExpansion into security and rethinking how security outcomes are deliveredM&A strategy, platform integration, and leadership/operating principles for durable growth

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