Some clues from Datadog

Datadog has already given 2 investor presentations since their recent earnings. Here's my gleaned tidbits.

JPMorgan Global Tech, Media and Communications investor conf (CEO interview)

land through infrastructure monitoring
typically called in when cloud migration starts
then can add in add'l product like APM or log mgmt
now 75% of new lands have 2+ products
orig solutions that owned the market don't work in cloud, custs must seek out cloud-native solutions
why not use AWS for cloud monitoring? customers are hybrid and multi-cloud
primary competition is customers DIY w/ open-source tools
most new logos are greenfield, maybe have a on-prem but are just entering cloud
custs start in cloud and quickly hit pain points (no visibility, lots of complexity); developers are ones taking the next step to engage
go-to-market is bottom up, cycle usually a few months for mid-sized, couple quarters for large
10% of biz negatively affected by pandemic, 10% positively
massive increase in traffic, customers had to scale 5-20x overnight; on-prem maxed out and cloud scaled
charge by usage/volume, sized by the infrastructure footprint
avg yearly rev is 200k/yr for enterprises, 160-170k/yr mid-market, and growing
new RUM product seeing good uptake, just started charging for it in Q1
with new Security product, just started charging for it
want security and ops working together on same platform; it's early days, more on the Security roadmap coming
hiring like mad

5-20% workloads are in cloud - but low % of that is being monitored
early days in hybrid rollout
pandemic accelerated things
new lands mostly greenfield
biggest competition is in-house or open source (Elastic)
other solutions not cloud-native, but have competitors at points (Splunk)
cooperate w/ cloud providers for monitoring their infrastructure
not much competition from in-cloud monitoring - custs have hybrid or have multiple cloud vendors
trying to be as frictionless as possible; easy to install and test, customers can easily see how it works and see the benefits
10% of custs affected strongly by pandemic, another 10% w/ some impact -- but also 10% w/ strongly positive impact (streaming, food delivery)
a lot of volatility in usage but not in overall pattern
launched new Partner program in Jan, seeing some success but its early -- thus far been great for geo diversification and getting global system integrators involved
75% of new lands in 2+ products, 63% of all custs
$NER been good due to growth of infrastructure, plus existing custs adding new products
getting FedRAMP approval this year, should boost govt custs next year
on int'l expand, starting to grow in EMEA and now Asia last yr
cannot create the trend in new locations - will watch for cloud migration ramping up, and follow it

-muji