Why Datadog bought Eppo for $220M, and what it means for the future of experimentation

Datadog's acquisition of Eppo represents a significant development in the experimentation sector, marking Datadog's entry into this rapidly evolving market and highlighting the ongoing trend of consolidating point solutions into comprehensive platforms. Historically, experimentation tools were exclusive to major tech companies, but the emergence of companies like Statsig and Eppo has democratized access to advanced experimentation, allowing broader adoption across various industries. This acquisition aligns with Datadog's strategy to expand its platform beyond infrastructure monitoring toward integrated product development and engineering workflows. By incorporating experimentation, Datadog aims to enhance its platform's capabilities, particularly in infrastructure workflows, which involve large data volumes and quick decision-making processes, diverging from the traditional focus on product teams. This strategic move is expected to shift the emphasis of experimentation tools toward infrastructure-related applications, while also potentially altering commercial strategies and support structures for experimentation platforms.