Datadog and Contrast Security have announced a partnership that embeds Contrast’s Application Detection and Response (ADR) runtime sensors directly into Datadog’s Cloud SIEM platform. The integration delivers verified, high‑confidence alerts that distinguish real application‑layer exploits from background noise, enabling security teams to reduce mean time to respond from days to minutes.
The partnership comes as Datadog’s security business accelerates. In the third quarter of 2025, security annual recurring revenue (ARR) grew 53% year‑over‑year to $1.2 billion, up from $0.8 billion in Q2 and from $0.7 billion in Q1. The jump reflects strong demand for integrated observability and security, and it positions the company to capture a larger share of the growing cloud‑native security market.
Contrast’s ADR technology achieves verification by instrumenting the application runtime itself, monitoring code execution and data flows in real time. This approach detects attacks that bypass network‑based sensors and produces fewer false positives than signature‑or‑traffic‑based solutions. By feeding ADR data into Datadog’s telemetry fabric, the partnership gives analysts contextual fidelity that was previously only available through third‑party tools.
From a strategic perspective, the integration is a material event that can increase switching costs for enterprise customers. By tying runtime threat detection to Datadog’s unified telemetry, customers gain a single pane of glass for monitoring, alerting, and response, reducing the need to maintain separate security stacks. The move also differentiates Datadog from competitors such as Dynatrace, New Relic, Splunk, and Sumo Logic, which lack built‑in runtime detection. While the partnership does not yet have a quantified revenue impact, it is expected to drive incremental ARR growth and deepen customer lock‑in as organizations adopt multi‑cloud and AI workloads.
No market reaction data or analyst commentary was identified for this announcement, but the partnership aligns with Datadog’s broader strategy of expanding its security platform and leveraging AI to secure AI workloads. The collaboration is expected to reinforce Datadog’s competitive position and support its continued growth in the observability‑security space.
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