: Datadog’s software goes down — and so does its stock

by | Mar 8, 2023 | Stock Market

Datadog Inc.’s software suffered an outage Wednesday, and its shares declined as analysts voiced concern about a potential hit to revenue. Datadog
first notified customers that engineers were investigating issues with its web application at 1:31 a.m. Eastern, and continued to provide updates on its status blog. At 3:39 p.m., just before the close of markets, The company said that engineers had “identified and mitigated the initial issue.”

“A system update on a number of hosts controlling our compute clusters caused a subset of these hosts to lose network connectivity,” the company said. “As a result a number of the corresponding clusters entered unhealthy states and caused failures in a number of the internal services, datastores and applications hosted on these clusters.” “We expect live data recovery in a matter of hours (not minutes, and not days),” the status blog said. The company managed to get two services back up and running by just after 5 p.m. Eastern — Database Monitoring and Processes Monitor — though data processing and notifications were still delayed. Datadog charges for its data-crunching software based on usage. This consumption-based business model has been spreading throughout the software sector as companies like Snowflake Inc.
succeed with it, but it could prove to be a hindrance in the e …

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