Streaming logs from Capella App Services to Datadog enables teams to gain instant insights into application behavior, detect issues rapidly, and improve reliability, availability, and security. To set up this integration, users need a deployed Capella App Service, a configured App Endpoint, and a Datadog account. The process involves configuring the log source in Datadog, setting up log streaming in Capella App Services, and enabling log collection, parsing, normalization, visualization, and proactive logs analysis. Once set up, teams can monitor real-time logs, view and analyze them in Datadog, and set up alerts or further integrations as needed to maximize monitoring capabilities.