Datadog acquires Eppo to enhance feature flagging analytics

Datadog has acquired Eppo, a feature flagging and experimentation platform, in a move to strengthen its Product Analytics suite by offering developers a unified, end-to-end solution.

The integration will allow engineering, product and business teams to collaborate more efficiently in understanding the impact of new software features.

Announced on Monday, the acquisition enables Datadog to provide a more seamless experience for organisations navigating the complexities of application development—particularly those deploying AI-powered features.

"Today, application developers need to stitch together analytics from various tools across engineering, product and business teams to understand the impact of their new features and improvements," Datadog stated in the release. "Changes are often rolled out without understanding their impact to KPIs, making it difficult to tie these changes back to business outcomes."

With Eppo now part of its platform, Datadog aims to close this gap by offering a single system where teams can manage feature flags, run experiments, and analyse product performance all in one place.

"This unified approach means that engineers can track code changes with feature flags, data science leaders together with product managers can design and measure impact with experiments, and business analysts can use Datadog's Product Analytics suite to understand overall product usage and business outcomes," the company said.

Datadog also emphasised the relevance of this integration for companies managing AI-based systems. According to the company, Eppo's experimentation tools allow teams to measure how AI model changes affect user experience and performance in real time.

"The use of multiple AI models increases the complexity of deploying applications in production," said Michael Whetten, Vice President of Product at Datadog. "This complexity makes it difficult for developers to quantify the business impact of different models, agent behaviours, prompts or UI changes."

"Experimentation solves this correlation and measurement problem," he added, "enabling teams to compare multiple models side-by-side, determine user engagement against cost trade-offs and ultimately build AI products that deliver measurable value."

Chetan Sharma, founder and CEO of Eppo, said the integration will make experimentation more accessible and impactful for a broader range of organisations.

"Eppo wants to bring a high velocity, experiment-first culture to companies of every size, stage and industry," Sharma said.

"With Datadog, we are uniting product analytics, feature management, AI and experimentation capabilities for businesses to reduce risk, learn quickly and ship high-quality products."

Following the acquisition, Eppo will continue to support existing customers and onboard new ones under the "Eppo by Datadog" branding.

Datadog describes its platform as providing "unified, real-time observability and security" across the technology stack. The company's tools are designed to support development, operations, security and business teams in a range of digital transformation and cloud migration efforts.

The acquisition adds to Datadog's focus on helping teams understand user behaviour and track business metrics more effectively, especially in increasingly complex cloud-native environments.