Palo Alto Networks announces that it will be acquiring Embrace, which offers observability solutions for the users. This is an important acquisition, as it combines the high fidelity Real User Monitoring (RUM) capabilities into the Palo Alto Networks Observability portfolio.
As part of this acquisition, Palo Alto Networks also launches the Synthetics capability, which has been internally developed by the Palo Alto ADEM team for validating the health of the applications proactively from the locations around the globe.
In combination, these software innovations expand the portfolio of Palo Alto Networks Observability to offer a comprehensive DEM offering. Enterprise engineering and operations teams now get visibility across all digital layers, from real-time user interaction to proactive synthetic testing and backend microservices and infrastructure, on a single, cost-effective platform.
Unifying End-User Telemetry with Modern Application Stack Visibility
As modern enterprise applications grow increasingly distributed and autonomous, ensuring software reliability requires total performance visibility. Legacy monitoring suites often rely on fragmented toolchains that carry prohibitive costs while failing to detect subtle disruptions in end-user workflows.
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Embrace’s RUM framework was engineered specifically for modern, mobile-first, and cloud-native software environments, helping enterprises scale digital operations alongside rapid artificial intelligence deployments. By pairing Embrace’s user-centric analytics with Palo Alto Networks’ globally distributed network infrastructure, Synthetics proactively simulates application availability from strategic global access points.
The expanded platform equips organizations with three distinct operational benefits:
Eradicating Operational Blind Spots: IT and security teams can inspect end-user experience metrics and infrastructure performance within a single pane of glass, ensuring critical digital workflows execute without hidden friction.
Prevention of Revenue-Damaging Downtime: By leveraging Embrace‘s telemetry together with the Palo Alto Networks’ analytics engine, it becomes easier to detect, troubleshoot, and solve any performance bottlenecks before they adversely affect your brand image.
Proactive Detection of Abnormalities: A combination of synthetic testing with user telemetry will allow detecting and solving problems with applications before they become visible to users or employees of the organization.
Momentum Across the Enterprise Observability Market
The transaction follows Palo Alto Networks’ high-profile acquisition of Chronosphere in January 2026, marking continued momentum for the company’s dedicated observability strategy. In Q3 FY26, the company’s Observability business unit officially surpassed $300 million in Annual Recurring Revenue (ARR).
Furthermore, industry analysts have consistently validated the platform’s execution: Palo Alto Networks was named a Leader in the Gartner® Magic Quadrant™ for Observability Platforms for the third consecutive year and earned the top ranking for Observability Cost Control in the 2026 Gartner® Critical Capabilities™ report.
“To truly understand how their applications are performing, organizations need to see the whole picture – from the moment a user taps or clicks to what exactly happens on the backend. By combining Palo Alto Networks’ leading Observability platform with Embrace’s innovative Real User Monitoring and the organically developed Synthetic Monitoring capabilities, we’ll deliver exactly that. And we’re taking it a step further – by linking these capabilities with Cortex AgentiX, organizations will be able to both see and automatically fix issues across their ecosystem. This is what true platformization looks like in practice,” said Lee Klarich, Chief Product & Technology Officer of Palo Alto Networks.