Is it true DataDog is losing heavily to the competition in the last year? Curious which geos are the most affected.

Question

Accepted Answer

I wouldn’t say losing heavily to competition. I’d say losing to budget cuts more than anything. Lots of companies keeping what they have right now for monitoring, or finding something cheaper as a temporary bandaid.

Answer

Price and commoditization are the biggest issues. Datadog is an expensive product and it's extremely difficult to compete against "good enough". Basically, if a company is not experiencing frequent, "the roof is on fire" outages, there is really no way to justify spending that much on Datadog versus the incumbent tools. Even if the engineers / ground level folks want Datadog, or maybe even a director or VP is on board, it won't get through finance.

The issue with Datadog as a sales organization, and the reason it's so hit or miss with such high attrition (seriously it's ridiculously high), is because your account list is extremely small, has been ran through by 3 - 4 reps before you and many have already blocked Datadog or requested not to be contacted.

When your list is so small, it comes down to luck of the draw to a large degree.

It really comes down to: are any of the accounts in your list facing pain that is *DRASTIC* enough to justify ripping and replacing monitoring tools? At the end of the day, it's dashboarding and alerting, and if the tool(s) in place are already doing 80% of the job, that remaining 20% is almost never enough to justify moving solutions.

The problem is already "solved" in the eyes of the business. Unless there is serious pain or a company initiative to improve monitoring, you're fighting an extremely uphill battle.

In competitive situations, it's almost always status quo being "good enough" that is the killer. In evaluations, unless there is a super niche technical requirement that Datadog can't solve, the solution generally gets the tech win, but since there is so much parity between tools, price often becomes a difference maker.

Answer

Yes. All geographys, but heavily in the commercial and mid market space.

Answer

As a manager in NA, we aren't lose heavily to competition, but losing deals more frequently due to tight budgets and econ downturn like most other SaaS orgs. We're still making it happen tho!

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Anonymous Q&A

Is it true DataDog is losing heavily to the competition in the last year? Curious which geos are the most affected.