Reminder: Agentic + AI Observability Meetup is next week in SF 🙌 Join us at the @databricks SF office for talks from Databricks + @OpenAI on meta harnesses, Omnigent, and production agent governance, plus mingling with bites and dessert. 📅 Wed, August 12 | 5:00–8:00 PM PT 🎟️ RSVP: #Omnigent# #AIAgents# #AIObservability# #OpenSource#

Your AI assistant says 44% pull-through, 60 days to close. The dashboard says 43.2% and 52.5. Did the model hallucinate? Trace it with @MLflow and you see the agent got 44% and 60 straight from the tool. It summarized correctly. The bug is upstream: the tool and the dashboard just disagree. That's the shift, from "the AI is wrong" to a bug someone can actually fix. @cedricclyburn and @LegareKerrison on how AI observability works:

$DT to acquire AI observability platform Arize for $915M. The deal includes ~$815M in cash, with the remainder in replacement equity awards for Arize employees. Dynatrace expects the acquisition to add ~200 bps to FY27 ARR growth, while diluting non-GAAP oper margin by 175 bps.

🛡️StreetAccount Cybersecurity Check-in: From AI Casualty to Beneficiary (5-Nov) ‣ Focus Points • High-profile events have driven volatility, but AI-enabled attacks are broadly bolstering cybersecurity demand. • Broad platforms seen as best positioned to capitalize, while Endpoint, Network, Cloud Security all have identifiable tailwinds. • Vulnerability Management considered most exposed to AI disruption as frontier models increasingly replicate core capabilities. • Underperformers struggling with AI monetization, ARR declines, decelerating growth. • AI monetization is early but real, with recent earnings calls highlighting link to bookings, revenue. ‣ The Context • Cybersecurity stocks have experienced significant volatility this year as markets weigh net impact of growing AI adoption and agentic AI advancements. +ANT's Claude Code Security rocked the segment in Feb, which then dipped again in March on leak of Mythos' cybersecurity capabilities; Project Glasswing partners, including CRWD and PANW, later rallied on model's official release. Rogue agents, cyber-attacks and warnings from AI CEOs have since bolstered sentiment. ‣ The Winners • Perceived winners include Endpoint Security (CRWD, S) - analysts point to AI agents greatly expanding number of endpoints that need protection; Network Security/Firewall (PANW, FTNT, CHKP) - seen as retaining moat that is difficult for competitors or AI to meaningfully replace; and Cloud Security/SASE (ZS, NET, NTSK) - set to benefit from integration of AI to eliminate blind spots, anticipate zero-day attacks and detect unusual traffic. Analyst consensus suggests safest bets are broad platforms, considered best positioned to benefit from vendor consolidation (CRWD, PANW). Identity & Access Management (OKTA) also considered to be a beneficiary, with agents likely requiring identities, permissions and access controls similar to employees, though this is not yet a proven revenue driver. ‣ The Losers • Vulnerability Management (RPD, TENB, QLYS) broadly seen as segment most at risk of AI disruption due to growing capabilities of frontier models to scan and detect exploits within code and networks. The recent high-profile exposure of PHP vulnerabilities, discovered through the use of tools including OpenAI's GPT-5.6 Sol, further intensified scrutiny of these names. ‣ YTD Underperformers • CHKP -21% has faced a slower-than-expected turnaround, failing to convert AI-related demand into headline growth, ceding ground to cloud-native rivals CRWD and PANW. • RPD -1% has suffered from declining ARR and aggressive competition in vulnerability management. • ZS -0% has struggled with decelerating growth forecasts, exec departures, and high AI-related capex. • DT +8% has underperformed on disappointing profit outlook, while its acquisition of Arize, an AI observability and evaluation platform, is expected to dilute margins through FY27. % price moves are year-to-date as of market close 4-Nov. ‣ Earnings Takeaways • Recent earnings calls suggest AI infrastructure growth is translating into concrete product bookings and new security demand across the group, with companies tying AI directly to revenue or platform expansion. FFIV said direct AI use case bookings more than doubled from H1 and sized its AI addressable market by 2030 at roughly $11B. CHKP highlighted strong demand for AI security, though AI data center security revenue expected to be incremental only starting 2027. DT has begun monetizing its AI capabilities and says AI is increasing telemetry volume and complexity, lifting platform consumption and making unified observability more important. $CRWD $PANW $FTNT $CHKP $ZS $NET $OKTA $RPD $TENB $QLYS $DT $FFIV $S $NTSK $ANT #Anthropic# #Cybersecurity# #AI# #AgenticAI# #AIMonetization# #EndpointSecurity# #CloudSecurity# #NetworkSecurity# #VulnerabilityManagement# #VendorConsolidation# #FinTwit# #TechStocks# #Earnings# #Tech# Gain immediate access to earnings insights with #StreetAccount#:

Join us in Bellevue for the Agentic + AI Observability Meetup! 🙌 Focusing on agentic architectures, AI observability, and real-world deployment of Omnigent. 🔹 Talk #1#: Harness the Power of Omnigent - Zeyi Fan (@databricks) 🔹 Talk #2#: Governing and Improving Production Agents with Omnigent and Codex - Wesley Pasfield (@OpenAI) 🔹 Mingling with bites and dessert 🗓️ Thurs, Aug 27 | 5:00–8:00 PM PT 📍 Databricks Bellevue Office 🔗 Register: #Omnigent# #AgenticAI# #Observability# #OpenSource# #LLMOps#

DYNATRACE $DT price-target raised to $74 (from $65) at UBS, while maintaining a Buy rating: "Demand for AI/agent observability is inflecting, boosted by recent AI governance/safety concerns, which could be a material catalyst for DT/DDOG shares and with this initial deep-dive we focus on DT's Arize acquisition but we also offer insights relevant for DDOG. Net, we conclude that both DT and DDOG will likely be key beneficiaries of rising AI observability spend which our checks suggested could reach 20-25% of total observability spend over the next few years, enough to drive at least a few points of growth for both DT/DDOG in each of the next few years. We spoke with 4 F500 customers of Arize and overall we came away more positive on both the AI observability opportunity and the strategic rationale for the Arize acquisition with all 4 existing Arize customers expecting an aggressive spend ramp over the next several years (3 of 4 were customers of both DDOG+DT). Our work suggested that Arize + AI observability will be key to DT’s ability to drive high-teens c/c ARR growth over the next few years (UBSe 19%/18%/19% in FY27-29)."

Traditional monitoring tells you an API responded successfully in five seconds. It can't tell you your agent called the wrong tool, or fed the model the wrong context. @LegareKerrison breaks down AI observability with @MLflow: tracing, LLM-judge evaluation, and OpenTelemetry for multi-agent systems.

Join us for another engaging conversation around open-source distributed inference frameworks, LVLM spatial understanding, AI observability for agentic systems, and more in our Generative AI study group! Visit to register and we’ll see you tomorrow at 8 am PT.

Claude Managed Agents, the Messages API, and the Claude SDK now support OpenTelemetry traces. > By default, they include duration, status, token counts, model, and tool names. Anthropic is steadily enhancing its cloud platform, and supporting OpenTelemetry is a major step toward enabling AI observability with tools like Grafana, Splunk, and others. Traces are useful for testing too! 👀