Azure Arc is a service that extends the Azure platform to help organizations build cloud-native applications, secure servers, and deploy data services across on-prem data centers and other clouds. The new integration with Datadog provides insights into Arc environments, allowing users to monitor connection status, identify issues, and deploy the Datadog Agent as an extension onto Arc-enabled servers. With this integration, users can visualize host status, set up monitors for alerts, and create custom dashboards and monitors using Azure tags. This enables hybrid and multi-cloud management, simplifying observability across environments, and aiding in migrations and hybrid management.