How to control Datadog costs

published on 24 June 2024

Here's a quick guide to managing your Datadog expenses:

Strategy Description
Reduce data volume Monitor fewer hosts, collect fewer logs, adjust metric collection
Use custom metrics wisely Focus on essential metrics, remove unnecessary ones
Improve tagging and filtering Create a clear tagging plan, use filters to remove unneeded data
Optimize log management Set up log filters, use exclusion rules, shorten log storage time
Use committed use discounts Explore Datadog's discount options for long-term plans
Track and alert on cost changes Create cost dashboards, set up alerts for sudden increases
Improve APM and tracing Limit data collection, use smart sampling, adjust storage time
Simplify infrastructure monitoring Monitor only important resources, use agents wisely
Use cloud provider integrations Lower data transfer costs, improve resource efficiency
Create a cost review process Assign responsibilities, set review frequency, analyze cost data

By implementing these strategies, you can significantly reduce your Datadog costs while maintaining effective monitoring of your IT systems.

How Datadog Pricing Works

Datadog

Datadog's pricing can be complex. Let's break it down to help you understand and control costs.

Datadog's Pricing Structure

Datadog uses a tiered pricing model. Different services have different pricing methods:

Service Pricing Method Starting Price
Log Monitoring Per GB of data Varies
APM Per host $31/host/month
Custom Metrics Per metric Varies
RUM Per session $1.50/1,000 sessions/month
Infrastructure Monitoring Per host Free plan available; Pro at $15/host/month
Synthetic Monitoring Per test run $5/10,000 API test runs/month
Database Monitoring Per database host $70/database host/month

Datadog offers discounts for long-term commitments and a free plan for basic Infrastructure Monitoring.

What Affects Datadog Costs

Several factors can impact your Datadog bill:

  • Data volume
  • Number of hosts
  • Service usage
  • Custom metrics count
  • Tagging and filtering complexity

Main Cost Drivers

The biggest factors that can increase your Datadog costs are:

Cost Driver Why It Matters
Log management High data volumes can lead to high costs
Custom metrics More custom metrics mean higher costs
Complex tagging Can increase data processing and storage needs
APM and tracing These features can add to your bill

Understanding these cost drivers is key to keeping your Datadog expenses in check. In the next section, we'll look at ways to control these costs and get the most out of your monitoring budget.

Ways to Control Datadog Costs

Here are some key methods to keep your Datadog expenses in check while still getting good monitoring:

Reduce Data Volume

Cut down on data to lower costs:

Action How it Helps
Monitor fewer hosts/services Less data to process
Collect fewer logs Lower storage needs
Adjust metric collection Focus on key metrics only

Use Custom Metrics Wisely

Custom metrics can be costly. To save money:

  • Pick only the most important custom metrics
  • Remove any metrics you don't need
  • Keep track of how many custom metrics you use

Improve Tagging and Filtering

Good tagging can help cut costs:

  • Make a clear tagging plan
  • Use filters to remove unneeded data
  • Set up smart log keeping rules

Use Sparse Metrics Collection

Collect less data for some metrics:

  • Turn off less important metrics
  • Collect some data less often
  • Keep data for shorter times

Cut Log Management Costs

Logs can be expensive. To save on logs:

Strategy Description
Set up log filters Only keep important logs
Use exclusion rules Don't collect unneeded logs
Shorten log storage time Keep logs for less time

Use Committed Use Discounts

Save money with long-term plans:

  • Look at Datadog's discount options
  • Check your usage patterns
  • Talk to Datadog about discounts

Track and Alert on Cost Changes

Keep an eye on your spending:

  • Make dashboards to watch costs
  • Set up alerts for sudden cost increases
  • Check your costs regularly
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More Ways to Cut Costs

Here are some extra tips to help you save money on Datadog:

Improve APM and Tracing

APM

To lower APM and tracing costs:

Strategy How it Helps
Limit data collection Collect less data to reduce costs
Use smart sampling Get insights from less data
Adjust data storage time Keep data for shorter periods

Simplify Infrastructure Monitoring

To save on infrastructure monitoring:

Technique What to Do
Monitor less Only watch important resources
Use agents wisely Put agents only on key systems
Adjust container monitoring Collect data less often, store it for less time

Use Cloud Provider Integrations

Work with your cloud provider to cut costs:

Benefit How it Helps
Lower data transfer costs Pay less for moving data
Better resource use Use cloud resources more efficiently

Use services like PrivateLink to connect Datadog to your cloud. This can help you save money on data transfers and use your cloud resources better.

Create a Cost Review Process

To keep Datadog costs in check, set up a regular review process. This helps you find ways to save money and use resources better. Here's how to do it:

Assign Responsibilities

Pick a person or team to watch over Datadog costs. Include people from different departments like finance, engineering, and operations.

Set Cost Review Frequency

Plan regular meetings to talk about costs. Do this every month or every three months.

Analyze Cost Data

Look at your Datadog costs using their cost tools. Check things like:

What to Check Why It Matters
How much data you're using More data means higher costs
How long you keep data Longer storage times cost more
How you use Datadog Different features have different prices

Use this information to find ways to save money.

Develop a Continuous Improvement Cycle

Keep working on saving money by following these steps:

  1. Find areas where you can cut costs
  2. Make changes to save money
  3. Check if the changes are working
  4. Adjust your plan based on what you learn

Conclusion

Main Takeaways

Here's a summary of how to keep your Datadog costs down:

Strategy Description
Regular cost reviews Check your Datadog expenses often to find ways to save
Use cost tags Group your cloud charges to spot unnecessary spending
Optimize resources Use the right size and type of instances to avoid waste
Schedule workloads Run non-urgent tasks during off-peak hours to cut costs
Use cost management tools Try platforms like CloudZero to understand your Datadog expenses better

FAQs

How to reduce cost on Datadog?

To cut down on Datadog expenses, try these simple steps:

Strategy Description
Remove unused tags Delete tags you don't need
Uninstall Datadog Agent Remove from unused hosts
Turn off log management Disable for hosts that don't need it
Set up spike alerts Get notified about sudden cost increases

How to reduce costs in Datadog?

Use smart tagging and filtering to lower your Datadog bills:

Method How it helps
Use tags wisely Group resources for better tracking
Create filters Choose what to monitor and what to skip
Review regularly Check your setup often to find savings

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