Amazon OpsWorks is a service designed to streamline the management of applications hosted on AWS by utilizing the Opscode Chef framework to automate and customize application configurations, updates, and deployments in cloud environments. It organizes infrastructure into three tiers: stacks, layers, and instances, allowing for efficient resource management and scalability. Datadog integration enhances this by enabling monitoring of OpsWorks events and metrics, such as CPU, load, memory, and processes, providing insights into resource utilization and performance. Users can filter or aggregate metrics by stack, layer, or instance, and set thresholds for load-based instances to optimize resource allocation. By integrating with Datadog, users can correlate event data and metrics, ensuring their recipes execute as intended and aiding in strategy formulation for managing scalable applications. Setup is straightforward for existing AWS integrations in Datadog, with options to incorporate AWS CloudTrail for event tracking.