Datadog APM is Tempo.
Logs is Loki. Metrics is Prometheus.
Datadog charges per host + per million logs ingested + per synthetics test + per RUM session + per APM trace. The underlying capabilities — metrics, traces, logs, dashboards — are commodity primitives covered by the LGTM stack: Loki + Grafana + Tempo + Mimir, all open source, all maintained by Grafana Labs. We deploy + operate the LGTM stack on your AWS. Same dashboards, your data, no per-host pricing.
Datadog Pro · APM + Logs + Infra
At 1,000 hosts + 5TB logs/day (typical 500-eng SaaS), Y1 reclaim crosses $300K.
Datadog has at least seven taxes.
Per-host APM + per-host Infrastructure + per-million logs + per-test synthetics + per-RUM session + per-CSM session + per-database query — each scales independently. Self-host scales with raw storage, which is dramatically cheaper.
Datadog list prices May 2026. Self-host numbers based on Grafana / Loki / Tempo / Mimir on AWS EC2 + S3 (long-term storage) + Allied $22K deploy amortised. Datadog is the most-overpaid SaaS in our experience: per-host pricing means the bill grows with your fleet, but the LGTM cost grows with bytes — much more gently.
Three layers. All open source.
The LGTM stack from Grafana Labs is the de facto open-source observability standard. Mimir for metrics (Prometheus-compatible). Loki for logs. Tempo for traces. Grafana for dashboards. All AGPL or Apache-licensed, all production-grade at scale, all on your AWS.
- OTel Collector daemonset (replaces dd-agent)
- Sampling + filtering at ingest
- Datadog-compatible API (drop-in dd-agent → otel migration)
- Per-service routing to right backend
- Auto-scaling on AWS ECS / EKS
- Mimir — Prometheus-compatible metrics, S3 long-term
- Loki — log aggregation, S3 backed
- Tempo — distributed traces, S3 backed
- Pyroscope — continuous profiling
- Configurable retention per tenant / project
- Grafana Enterprise UI (free for self-host)
- Migrated dashboards from your Datadog config
- Alertmanager → PagerDuty / OpsGenie / Slack
- SSO via Okta / Azure AD / Google
- SLO tracking with burn-rate alerts
All four LGTM components are open source — Loki and Tempo are AGPLv3, Mimir is AGPLv3, Grafana is AGPLv3. Self-host is fully unrestricted; you can fork the code if you want to.
Almost everything Datadog does, LGTM does too.
The LGTM stack is purpose-built as a Datadog/New Relic alternative. Coverage is comprehensive — metrics, logs, traces, dashboards, alerting, SLOs, profiling. The differences are operational (tenant config, retention, scale tuning) not feature-level.
Fixed price. Sized by host + log volume.
One number, one ship date. Sized by host count, log volume, and required HA posture.
From $22,000 — fixed
- LGTM stack deployment on your AWS (EKS / ECS)
- OTel Collector with dd-agent compatibility for drop-in migration
- Mimir + Loki + Tempo + Grafana sized for your volume
- Pyroscope continuous profiling
- SSO integration — Okta / Azure AD / Google Workspace
- Migrated dashboards — converted from Datadog JSON exports
- Alertmanager → PagerDuty / OpsGenie / Slack
- Long-term storage on S3 with configurable retention
- 1-week parallel run with Datadog before cutover
- Runbook + handover doc
24-hour quote turnaround · NDA on request
Why we don't recommend the obvious switches.
"Datadog alternative" results: New Relic, Dynatrace, Splunk, Honeycomb, Chronosphere. Same hosted-vendor model, different brand. Same per-host or per-event pricing.
"What about…"
Will my dd-agent integrations break?▾
How do we migrate dashboards?▾
What about Datadog AI / Watchdog?▾
How does log ingestion compare?▾
What about retention?▾
Who owns everything?▾
Why this number works: AI-paired senior engineers raise the floor on quality + consistency · 250+ products shipped · direct vendor billing — you keep the wrapper margin. → The full method
SCOPE · WHAT WE REBUILD vs WHAT WE DON’T · DATADOG
We don’t rebuild Datadog. We rebuild your usage of it — the 15–25% you’re paying for and actually using, on direct billing. Read the universal methodology →
- APM dashboards — your services’ span traces, error rates, latency p50/p95/p99 (LGTM stack: Tempo + Mimir + Grafana)
- Log search + retention — your existing log streams ingested via Vector → Loki, with the saved searches your team actually uses
- Metrics dashboards — the 5–10 boards your team opens daily, rebuilt in Grafana with brand-matched theming
- Alerting + on-call routing — the critical alerts that page on-call, configured in Alertmanager → Slack + PagerDuty
- Infrastructure metrics — CPU / RAM / disk per host via node-exporter, plus your custom service-level metrics
- Slack + PagerDuty integrations — exact integration shape preserved (incident creation, channel routing, escalation policies)
- SIEM (Cloud Security Management) — different niche product. Our pick: Wazuh OSS for self-hosted, or Panther for cloud-native managed SIEM
- Real User Monitoring (RUM) — different category. Our pick: Sentry’s RUM (you might already pay them) or PostHog Web Analytics
- Synthetics / browser uptime checks — specialty product. Our pick: Checkly (paid, polished) or UptimeRobot (free tier sufficient for most teams)
- Network Performance Monitoring — specialized; only matters at certain scale. Our pick: ThousandEyes or stay on Datadog NPM for this single feature
- Cloud Cost Management — own category. Our pick: Vantage (paid, polished), AWS Cost Explorer directly (free), or Infracost for IaC-driven cost prediction
Not a rebuild case? We still help. Free 30-min advisory call to evaluate any of the alternatives above — we use them all in our practice and have no resale relationships, just opinions earned from the work. Book a call →
Stop the per-host pricing. Self-host LGTM.
From $22,000 fixed. 4–6 weeks to ship. Same dashboards. Your AWS. Your bytes, no per-host pricing. No deck-pitch — send your Datadog plan + host count + monthly log volume, we send a quote in 24 hours.
15+ years · ISO 9001:2015 · 250+ shipped · MSA · SOW · DPA ready · LGTM stack is open source.