Datadog organizations are logical groups of users, configurations, and telemetry data that have a parent-child relationship. Large enterprises need to fulfill legal requirements and ensure isolation among divisions by implementing a multi-organization setup in Datadog. This setup provides benefits such as consolidated billing data, logically isolated data, centrally governed configurations, user flexibility, and the flexibility to have different structural organization models. The recommended approach is to analyze organizational requirements with technical account managers or customer success managers, keep child organizations low, create Restricted Datasets for limited observability sharing, use parent organizations only for central management and billing, automate provisioning of users and child organizations, standardize integrations with cloud environments, and implement continuous governance through automated processes.