Observability For Agentic AI Is Latest Focus For Dynatrace-AWS Alliance

Dynatrace sales through the AWS Marketplace recently surpassed the $1 billion mark as the two companies continue to expand their multi-faceted partnership as demand grows for observability capabilities for managing AI applications and agents.

The alliance between Dynatrace and Amazon Web Services, which has now generated $1 billion in sales through the AWS Marketplace, is getting an additional boost with the general availability of AWS DevOps Agent, executives of the two companies say.

Observability tech developer Dynatrace, which is heavily focused on enabling autonomous clouds and AI operations, has been deepening its relationship with AWS, particularly through a multi-year strategic collaboration agreement (SCA) the two companies announced one year ago that included both technology and business dimensions.

More recently, at the AWS re:Invent 2025 event in December, Dynatrace announced expanded integrations with AWS that allow Dynatrace Cloud Operations users to discover AWS services and leverage metadata and native telemetry to monitor and manage cloud performance and costs.

At re:Invent 2025 Dynatrace also debuted AI Observability for Amazon Bedrock AgentCore, providing visibility into agentic systems and their interactions across AWS services, and announced Dynatrace integration with AWS Security Hub for real-time observability of cloud security posture.

“I think the collaboration around co-innovation has been at a level that we’ve never seen before between our two companies,” said Jay Snyder, Dynatrace senior vice president of partners and alliances, in an interview with CRN.

Dynatrace’s total sales through the AWS Marketplace recently surpassed the $1 billion milestone—about 75 percent of that coming in just the last two years. “Which is pretty telling around where we’ve been and where we’re headed with AWS,” Snyder (pictured) said.

“The billion dollars is a good thing, a ‘high five’ that validates that we’re going in the right direction,” agreed Chris Grusz, AWS managing director, technology partnerships, in the interview with CRN.

At its Perform annual user conference in January Dynatrace announced expanded cloud-native integrations and automations across AWS, Microsoft Azure and Google Cloud Platform (GCP), providing access to more telemetry and metadata that the company said improved visibility across the three hyperscalers and enabling data teams to identify and fix issues faster and reduce risks to the end-user experience.

With the wave of agentic AI sweeping through the IT industry, Dynatrace and AWS are leveraging their alliance as they undertake joint development efforts around AI agents and support customers as they develop agent-based systems. “That’s the cool thing that I really see going on between AWS and Dynatrace,” Grusz said.

The Need For Observability Around AI

Snyder and Grusz said visibility into the operations and performance of AI workloads running on cloud platforms are a major challenge as more businesses and organizations move AI into production.

“What we see our customers needing most in this agentic space is the confidence to know that they know what’s happening with those AI workloads,” Synder said. “I think risk and resiliency around those [AI] workloads continue to be one of the holdbacks. And I think [AWS and Dynatrace] together are providing answers to that. We’re showing them that it can be absolutely bulletproof. But more importantly, we can monitor them in such a way that there is no additional risk.”

Dynatrace has been an AWS partner since 2014 when Dynatrace began offering the ability to monitor the performance of software-as-a-service applications running on the AWS platform. Dynatrace became available through the AWS Marketplace in 2016.

Dynatrace and AWS announced a strategic partnership in March 2022 that included new joint product development and go-to-market activities. But last year’s SCA really kicked the Dynatrace-AWS alliance into high gear with even deeper integration between the two companies’ product portfolios, providing customers with increased visibility into their AWS environments—including AIOps capabilities for AI applications, AI agents and large language models.

The SCA also included significant joint-marketing and co-selling motions—a growing portion of the latter through the AWS Marketplace.

“This isn’t just exciting for AWS and Dynatrace. This has been really exciting for our extended ecosystem,” Snyder said. “We are doing more and more business through partners at Dynatrace. Over 90 percent of our business now is with and through partners. In Q3 alone, 11 of our 12 largest, million-dollar-plus deals were done with partners.”

“And we're seeing more and more of the ‘power of three’-type play where we're doing our largest deals with a global systems integrator or a regional systems integrator with AWS and in the Marketplace,” the channel executive said.

More recently, that growth is driven by agentic AI. “If you take a look at what's going on with agentic solutions, these agents are making their own decisions. They're actually taking information and making decisions. You can't make those decisions without seeing what's going on,” Grusz said, citing Dynatrace’s observability capabilities. “Dynatrace feeds very well into what these agents need to actually go make and these decisions on their own.”

AWS DevOps Agent

Which circles back to the March 31 announcement of the general availability of the AWS DevOps Agent, the company’s AI agent that enables end-to-end observability for autonomous workloads and integrates with tools such as Dynatrace to automate incident response.

That also provides a feedback loop for the AWS Kiro AI coding tool and the Amazon Bedrock service for accessing large language models.

“We’re seeing a lot of customers now report that’s paying dividends and giving people more confidence to deploy [AI] at scale,” Synder said. “We're in a place now where everyone is leaning in. The next wave is scale.”

Grusz said the agentic AI segment is the fastest growing category of the AWS Marketplace. And he said partners are benefiting from that through the Marketplace’s new Multi-Product Solutions capability, which AWS also unveiled at re:Invent 2025, through which AWS partners combine their own software and services with ISV and Amazon products in a single packaged offering.

“Now, a system integrator can actually go and pull together a solution bundle in the marketplace,” Grusz said. “We're going beyond [a] transactional view to having much more of a solution view in AWS Marketplace. So we're seeing the system integrators really start to come into the marketplace on the agentic front, very aggressively.”

And Snyder said Dynatrace will continue to expand its own AI observability offerings through the AWS Marketplace, “because that is the place where everyone is going.”