Dynatrace (DT) Technology Leadership Forum 2026 summary

Observability market evolution and AI impact

• Observability is entering a new era driven by AI, requiring more granular oversight and extending beyond traditional business resilience to questions of accuracy and correctness in AI workloads.

• AI workloads demand end-to-end observability, integrating traces, metrics, logs, and real user data into a unified platform for deterministic and actionable insights.

• The shift to autonomous operations is underway, with agents taking action based on insights, aiming for holistic, automated workflow management.

• Organizations are consolidating observability solutions, moving away from multi-vendor environments to integrated platforms for efficiency and automation.

Financial performance and growth drivers

• Net new ARR organic growth reached 41%, significantly above previous quarters and guidance, signaling strong momentum.

• Logs business doubled to over $200 million in consumption within two quarters, far exceeding prior expectations.

• New logo ARR grew over 160% year-over-year, driven by large organizations seeking platform consolidation and automation.

• The Dynatrace Platform Subscription (DPS) model now accounts for 75% of ARR, enabling flexible, holistic platform consumption.

Logs and platform strategy

• Customers are migrating logs to the platform for substantial cost savings and improved analytics, leveraging filtering and integration with other data types.

• End-to-end observability, including logs, enhances insights and supports the foundation for agentic AI and autonomous operations.

• The DPS model allows customers to commit to overall spend and flexibly allocate usage across platform capabilities as needed.