Palo Alto Networks Acquires Chronosphere: What It Means for AI Observability, Security & Agentic Ops

Palo Alto Networks’ $3.35B acquisition of Chronosphere marks one of the most
significant shifts yet in the evolution of AI-era infrastructure. In this
special edition of AppDevANGLE, Paul Nashawaty and Bob Laliberte break down what
the deal means for customers, competitors, and the future of AI-driven
observability, security, and agentic operations. We explore why unified
telemetry is becoming the foundation of resilient AI systems, how Chronosphere’s
scale and OpenTelemetry-first architecture fits into Palo Alto’s platform
strategy, and what this consolidation signals for the broader ecosystem. Whether
you’re in platform engineering, cloud security, SRE, or AI operations, this
episode unpacks the real implications behind one of 2025’s biggest industry
moves. Key Highlights: Why Palo Alto Networks is making a major bet on
observability as the backbone of AI-native security How Chronosphere’s
OpenTelemetry-aligned, high-scale architecture complements Palo Alto’s platform
The role of telemetry in powering agentic investigation, correlation, and
remediation Insights from theCUBE Research on tool sprawl, consolidation
pressures, and unified operational views How distributed GPU clusters (“scale
across”) are reshaping observability demands Why agentic AI still requires
human-in-the-loop oversight—and how this acquisition accelerates that future
Competitive implications for Datadog, Dynatrace, Elastic, and the broader
observability and security ecosystem The significance of Chronosphere’s 21× ARR
valuation and what it signals about AI infrastructure priorities What
practitioners should expect next in integration, platformization, and AI-driven
operations


00:00 - Intro
00:06 - Strategic Integration: Observability and Security in the Evolving Tech Landscape
03:54 - Building the Chronosphere: Harnessing Scale and Data Density for the AI Era
06:21 - Enhancing AI Infrastructure: The Imperative of Observability, Security, and Autonomous Remediation
09:28 - Human-AI Synergy: Oversight, Integration, and Financial Dynamics
13:09 - Strategic Integration and Competitive Dynamics in Emerging Markets
17:19 - Final Reflections and Gratitude: Highlighting the Impact of Our Observability Acquisition