Dynatrace Launches AI Observability for Large Language Models and Generative AI

Rhea-AI Summary

Dynatrace (NYSE: DT) extends its analytics and automation platform to provide holistic observability and security for large language models and generative AI-powered applications, enabling organizations worldwide to embrace generative AI confidently and cost-effectively. The platform covers the end-to-end AI stack, including infrastructure, foundational models, semantic caches, and orchestration frameworks, and supports major platforms for building, training, and delivering AI models. It leverages core technologies to deliver a precise and complete view of AI-powered applications, helping organizations provide great user experiences while identifying performance bottlenecks and root causes automatically.

Insights

Market Research Analyst

The recent announcement by Dynatrace regarding the extension of its analytics and automation platform to include observability and security for large language models (LLMs) and generative AI-powered applications is a strategic move in an evolving market. The shift towards AI and machine learning workloads is expected to consume over 50% of cloud compute resources by 2028, as per Gartner's forecast. This marks a substantial increase from the current consumption of less than 10% and indicates the growing importance of AI in business operations.

Organizations are increasingly seeking ways to integrate AI to enhance efficiency, productivity and innovation. Dynatrace's initiative to provide a comprehensive solution for the end-to-end AI stack addresses a critical market need for tools that enable the reliable and cost-effective deployment of AI technologies. By focusing on user experience, performance optimization and cost management, Dynatrace is positioning itself to capitalize on the expanding market for AI observability and security solutions.

For stakeholders, the implications are significant. Companies investing in AI can expect enhanced support for their AI-powered applications, leading to better performance and user satisfaction. In the long term, as AI becomes more integrated into business processes, the demand for such observability platforms is likely to increase, potentially benefiting Dynatrace's market position and financial performance.

Financial Analyst

Dynatrace's extension of its platform to support LLMs and generative AI applications could be a pivotal development for its financial trajectory. As organizations adopt AI at a rapid pace, the need for comprehensive monitoring and security solutions becomes more pressing. Dynatrace's solution, which includes infrastructure, foundational models and orchestration frameworks support, is tailored to meet these emerging needs.

From a financial perspective, this expansion could open up new revenue streams for Dynatrace, as businesses looking to deploy generative AI applications will require robust observability tools. Furthermore, by providing capabilities to monitor token consumption, Dynatrace is addressing the cost management concerns that are often associated with AI deployments, potentially giving them a competitive edge in the market.

Investors should monitor the adoption rate of Dynatrace's enhanced platform, as it could serve as an indicator of the company's future performance. The ability to capitalize on the predicted surge in AI compute resources could result in increased market share and revenue growth, making it a noteworthy development for current and potential shareholders.

Legal Expert

One of the standout features of Dynatrace's extended platform is its focus on compliance with privacy and security regulations and governance standards. As AI applications become more prevalent, the legal landscape around data privacy and security grows increasingly complex. Dynatrace's ability to trace the origins of output created by AI apps with precision is an essential feature for organizations concerned with regulatory compliance.

For businesses, this capability could mitigate legal risks associated with AI deployments, particularly in sectors where data governance is stringent. The legal implications for Dynatrace's clients are favorable, as the platform can help ensure that their use of AI aligns with emerging regulations and standards. This aspect of the platform could be a differentiating factor for Dynatrace, potentially influencing the decision-making process for companies when selecting an AI observability and security provider.

Enables organizations to embrace AI with confidence by providing unparalleled insights into all layers of AI-powered applications, helping ensure security, reliability, performance, and cost-effectiveness

WALTHAM, Mass.--(BUSINESS WIRE)-- Dynatrace (NYSE: DT), the leader in unified observability and security, today announced it has extended its analytics and automation platform to provide holistic observability and security for large language models (LLMs) and generative AI-powered applications. This enhancement to the Dynatrace® platform enables organizations worldwide to embrace generative AI confidently and cost-effectively as part of their focus on increasing innovation, productivity, and revenue.

(Graphic: Business Wire)

Dynatrace® AI Observability is a comprehensive solution. It covers the end-to-end AI stack, including infrastructure, such as Nvidia® GPUs, foundational models, such as GPT4, semantic caches and vector databases, such as Weaviate, and orchestration frameworks, such as LangChain. It also supports the major platforms for building, training, and delivering AI models, including Microsoft® Azure OpenAI Service, Amazon® SageMaker, and Google® AI Platform.

Dynatrace AI Observability leverages the platform’s Davis® AI and other core technologies to deliver a precise and complete view of AI-powered applications. As a result, organizations can provide great user experiences while identifying performance bottlenecks and root causes automatically. Dynatrace AI Observability with Davis AI also helps them comply with privacy and security regulations and governance standards by tracing the origins of the output created by their apps with precision. Additionally, it helps them forecast and control costs by monitoring their consumption of tokens, which are the basic units that generative AI models use to process queries.

“Generative and predictive AI will unlock new possibilities for our business with our ML and LLM services, but to implement them successfully, we need to ensure that our services supporting these critical workloads are reliable and perform well,” said Ryan Berry, SVP Engineering & Architecture at OneStream. “That’s why we rely on Dynatrace, a leader in AI and observability. Our teams use Dynatrace to build and optimize generative AI apps that perform well and are cost effective to manage and deploy at scale.”

Gartner® states, “By 2028, the adoption of AI will culminate in over 50% of cloud compute resources devoted to AI workloads, up from less than 10% in 2023.ⁱ” This growth partially reflects organizations’ surging interest in generative AI to improve efficiency and productivity, drive automation, and foster innovation. Despite this momentum, many organizations are concerned about costs associated with generative AI-powered services. These can be many times more expensive than traditional cloud services and are difficult to forecast because they are based on the consumption of generative AI tokens by applications that are not yet in production. Simultaneously, governments worldwide are establishing regulations focused on the use of AI technologies in a responsible and ethical manner and in compliance with applicable laws.

Organizations cannot afford to ignore the potential of generative AI. However, they need comprehensive AI observability to help their generative AI investments succeed and avoid the risk of unpredictable behaviors, AI “hallucinations,” and bad user experiences.

“Generative AI is the new frontier of digital transformation,” said Bernd Greifeneder, CTO at Dynatrace. “This technology enables organizations to create innovative solutions that boost productivity, profitability, and competitiveness. While transformational, it also poses new challenges for security, transparency, reliability, experience, and cost management. Organizations need AI observability that covers every aspect of their generative AI solutions to overcome these challenges. Dynatrace is extending its observability and AI leadership to meet this need, helping customers to embrace AI confidently and securely with unparalleled insights into their generative AI-driven applications.”

“AI-powered transformation is a key driver of productivity and competitiveness for organizations worldwide,” said Ali Dalloul, VP, AI, Microsoft. “Microsoft Azure OpenAI Service is a robust generative AI solution for enterprises and public sector entities across the globe. We're pleased to partner with Dynatrace, a leader in AI-powered observability, to empower our shared customers, the teams driving innovation in the world’s largest organizations, to create generative AI-based services using Azure Open AI Service and Dynatrace AI Observability. This powerful combination helps ensure these services achieve the highest security, reliability, and performance standards while enabling the teams that manage them to control costs.”

Dynatrace AI Observability is available starting today for all Dynatrace customers. Visit the Dynatrace website for the current list of technologies and integrations supported by Dynatrace AI Observability. Visit the Dynatrace AI Observability blog for additional details about the solution.

About Dynatrace

Dynatrace (NYSE: DT) exists to make the world’s software work perfectly. Our unified platform combines broad and deep observability and continuous runtime application security with Davis® hypermodal AI to provide answers and intelligent automation from data at an enormous scale. This enables innovators to modernize and automate cloud operations, deliver software faster and more securely, and ensure flawless digital experiences. That’s why the world’s largest organizations trust the Dynatrace® platform to accelerate digital transformation.

Curious to see how you can simplify your cloud and maximize the impact of your digital teams? Let us show you. Sign up for a 15-day Dynatrace trial.

Cautionary Language Concerning Forward-Looking Statements

This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the capabilities of generative AI and Dynatrace AI Observability, and the expected benefits to organizations from using generative AI and Dynatrace AI Observability. These forward-looking statements include all statements that are not historical facts and statements identified by words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies, and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies, and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations, or strategies will be attained or achieved. Actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including the risks set forth under the caption “Risk Factors” in our Quarterly Report on Form 10-Q filed on November 2, 2023, and our other SEC filings. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events, or otherwise.

ⁱ Gartner IT Symposium/Xpo 2023, "The Future of Cloud in 2028: From Technology to Business Necessity," Milind Govekar, 6-9 November 20.

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240131857760/en/

Investor Contact:

Noelle Faris

VP, Investor Relations

Noelle.Faris@dynatrace.com

Media Relations:

Jerome Stewart

VP, Communications

Jerome.Stewart@dynatrace.com

Source: Dynatrace

FAQ

What is the ticker symbol for Dynatrace?

The ticker symbol for Dynatrace is DT.

What does Dynatrace's AI Observability platform provide?

Dynatrace's AI Observability platform provides holistic observability and security for large language models and generative AI-powered applications, covering the end-to-end AI stack, supporting major platforms for building, training, and delivering AI models, and delivering a precise and complete view of AI-powered applications.

How does Dynatrace help organizations embrace generative AI?

Dynatrace helps organizations embrace generative AI confidently and cost-effectively by providing insights into all layers of AI-powered applications, ensuring security, reliability, performance, and cost-effectiveness.

What are the benefits of using Dynatrace's AI Observability platform?

The benefits of using Dynatrace's AI Observability platform include providing great user experiences, identifying performance bottlenecks and root causes automatically, complying with privacy and security regulations, governance standards, and forecasting and controlling costs by monitoring consumption of tokens.