Datadog
DDOG
recently announced that it has been chosen as a
Microsoft
MSFT
partner within the Azure Cloud Adoption Framework.
Microsoft Azure is both a cloud computing platform and an online portal, enabling organizations to access and manage cloud services and resources, provided by Microsoft.
Per the Datadog-Microsoft partnership, Datadog will be integrating its monitoring and security capabilities with Azure’s full suite of services, thus helping organizations accelerate their cloud adoption process.
Previously, Datadog had an existing partnership with Microsoft, owing to which Datadog was available as a first-class service in the Azure console. This allowed Azure customers to implement Datadog as a monitoring solution for their cloud workloads.
The partnership also enabled Azure customers to leverage Datadog’s observability platform to drive successful cloud modernization and migration initiatives.
Datadog Rides on Growing Partner Base, Expands User Base
Datadog is steadily benefiting from the increased adoption of cloud-based monitoring and analytics platforms across the globe, resulting from the accelerated digital transformation and cloud migration across organizations.
DDOG witnessed a strong demand environment for its cloud solutions in 2021 and kept innovating at a rapid pace. Revenues in the last reported quarter were $326 million, up 84% year over year.
Earlier this year, Datadog entered into a strategic partnership with
Amazon
’s
AMZN
cloud division Amazon Web Services (AWS).
As part of the deal, Datadog and AWS will be developing and delivering a tighter product alignment in the future.
The strategic collaboration opened up a marketing and co-selling program between Amazon and Datadog, bringing new opportunities for consumers worldwide.
Management also announced the extension of DDOG’s strategic partnership with
Alphabet
’s
GOOGL
Google Cloud.
Datadog and Google Cloud expanded this relationship from Europe to the Middle East and Africa (EMEA) to North America.
The extended partnership made it easier for organizations to access and implement Datadog’s monitoring and security platform, allowing them to secure and optimize migrated and new workloads.
In August 2021, Datadog announced the launch of Datadog Cloud Security Platform, adding a full-stack security context to its deep observability capabilities. Later last year, DDOG announced its availability on Google Cloud Marketplace, further strengthening its partnership with Google Cloud.
By the end of 2021, Datadog announced its integration with Confluent to provide deep visibility into the health and performance of Confluent Cloud users.
Previously, Confluent customers used its fully managed, cloud-native data streaming service to power the real-time digital experiences, while avoiding the operational burdens of infrastructure management.
The Datadog integration provides customers with real-time visibility into the health and operations of their Confluent resources, ensuring smoother experiences.
DDOG’s focus on growing partnerships increased the visibility of its cloud solutions among consumers, which in turn, contributed to its business growth and drove a robust rise in customers.
In the last reported quarter, steady customer additions boosted the top line. Datadog had more than 18,800 customers at the end of the fourth quarter of 2021, up from 14,200 in the year-ago quarter.
At of the end of the fourth quarter of 2021, 78% of customers used two or more products, up from 72% a year ago. Additionally, 33% of customers utilized four or more products, up from 22% in the year-ago quarter.
In recent times, companies need to embrace digital conversion soon. As a monitoring and security platform for cloud applications, DDOG has a strategic advantage and anticipates witnessing robust growth in the ongoing fiscal year.
For the first quarter of 2022, Datadog anticipates revenues between $334 million and $339 million.
For 2022, Datadog anticipates revenues between $1.51 billion and $1.53 billion.
Currently, Datadog carries a Zacks Rank #3 (Hold).
The stock has surged 71.7% against the Zacks
Internet Software
industry’s decline of 40.2% and surpassed the
Computer and Technology
sector’s return of 8.7% in the past year.
You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
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