{"id":96742,"date":"2024-06-24T11:29:33","date_gmt":"2024-06-24T05:59:33","guid":{"rendered":"https:\/\/www.whizlabs.com\/blog\/?p=96742"},"modified":"2024-06-24T11:29:33","modified_gmt":"2024-06-24T05:59:33","slug":"tips-managing-reducing-datadog-costs","status":"publish","type":"post","link":"https:\/\/www.whizlabs.com\/blog\/tips-managing-reducing-datadog-costs\/","title":{"rendered":"7 Pro Tips for Managing and Reducing Datadog Costs"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">A significant chunk of Datadog&#8217;s costs includes the massive overall cloud bills. Unfortunately, despite using internal cost management tools, Datadog fails to break down and cushion these costs.<\/span><\/p>\n<p>However, to implement Datadog strategies, one must thoroughly know how Datadog works. And one of the easiest ways to do this is to certify yourself with the\u00a0<a href=\"https:\/\/www.whizlabs.com\/datadog-fundamentals\/\" target=\"_blank\" rel=\"noopener\">Datadog Fundamentals course<\/a>.<\/p>\n<p>This course not only helps you learn the Datadog features but also allows you to master skills for visualizing system metrics in Datadog, explore advanced log aggregation techniques, and set of monitors and notifications, ensuring timely alerts for any server or application performance deviations.<\/p>\n<p><span style=\"font-weight: 400;\">This blog will discuss <strong>7 pro tips for managing and reducing Datadog costs<\/strong>. But before, let\u2019s briefly overview Datadog and pricing models. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">It&#8217;s time to dive in.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ea7e02;color:#ea7e02\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ea7e02;color:#ea7e02\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.whizlabs.com\/blog\/tips-managing-reducing-datadog-costs\/#What_is_Datadog\" >What is Datadog?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.whizlabs.com\/blog\/tips-managing-reducing-datadog-costs\/#Datadog_cost_optimization_to_the_rescue\" >Datadog cost optimization to the rescue<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.whizlabs.com\/blog\/tips-managing-reducing-datadog-costs\/#7_Pro_Tips_for_Managing_and_Reducing_Datadog_Costs\" >7 Pro Tips for Managing and Reducing Datadog Costs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.whizlabs.com\/blog\/tips-managing-reducing-datadog-costs\/#1_Turning_off_log_management\" >1. Turning off log management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.whizlabs.com\/blog\/tips-managing-reducing-datadog-costs\/#2_Turning_on_spike_alerts\" >2. Turning on spike alerts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.whizlabs.com\/blog\/tips-managing-reducing-datadog-costs\/#3_Uninstalling_Datadog_Agent\" >3. Uninstalling Datadog Agent\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.whizlabs.com\/blog\/tips-managing-reducing-datadog-costs\/#4_Reducing_unused_tags\" >4. Reducing unused tags<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.whizlabs.com\/blog\/tips-managing-reducing-datadog-costs\/#5_Leveraging_committed_use_discounts\" >5. Leveraging committed use discounts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.whizlabs.com\/blog\/tips-managing-reducing-datadog-costs\/#6_Reconsidering_and_monitoring_custom_metrics\" >6. Reconsidering and monitoring custom metrics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.whizlabs.com\/blog\/tips-managing-reducing-datadog-costs\/#7_Using_ingestion_controls_and_retention_filters\" >7. Using ingestion controls and retention filters<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.whizlabs.com\/blog\/tips-managing-reducing-datadog-costs\/#Features_of_Datadog\" >Features of Datadog<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.whizlabs.com\/blog\/tips-managing-reducing-datadog-costs\/#Understanding_Datadog_Pricing_Strategy\" >Understanding Datadog Pricing Strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.whizlabs.com\/blog\/tips-managing-reducing-datadog-costs\/#Why_is_Datadog_so_expensive\" >Why is Datadog so expensive?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.whizlabs.com\/blog\/tips-managing-reducing-datadog-costs\/#Summary\" >Summary\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"What_is_Datadog\"><\/span><span style=\"font-weight: 400;\">What is Datadog?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Datadog is a <span style=\"color: #000080;\"><strong>cloud monitoring and analytics tool<\/strong> <\/span>that helps organizations ensure their applications run smoothly, regardless of their hosting environment \u2014 on-premises, hybrid, or across multiple cloud providers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With its comprehensive toolkit, Datadog provides real-time performance tracking, alerting, and analytics, allowing teams to identify and resolve issues quickly. Its extensive integration capabilities make it ideal for overseeing complex infrastructures, ensuring optimal application performance and improved cost efficiency.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At its core, Datadog offers real-time monitoring of servers, databases, tools, and services via a <strong><em>SaaS-based data analytics platform<\/em><\/strong>. This empowers teams to track system performance, understand user behaviors, and troubleshoot issues quickly. Datadog&#8217;s unmatched integration capabilities and user-friendly interface distinguish it from alternatives like Sematext, Splunk, and New Relic.<\/span><\/p>\n<figure id=\"attachment_96758\" aria-describedby=\"caption-attachment-96758\" style=\"width: 1498px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-96758 size-full\" src=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-dashboard.webp\" alt=\"datadog\" width=\"1498\" height=\"844\" srcset=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-dashboard.webp 1498w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-dashboard-300x169.webp 300w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-dashboard-1024x577.webp 1024w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-dashboard-768x433.webp 768w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-dashboard-150x85.webp 150w\" sizes=\"(max-width: 1498px) 100vw, 1498px\" \/><figcaption id=\"caption-attachment-96758\" class=\"wp-caption-text\">Image Source: datadoghq.com<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"Datadog_cost_optimization_to_the_rescue\"><\/span><span style=\"font-weight: 400;\">Datadog cost optimization to the rescue<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">To improve the cost of using Datadog, you must identify inefficiencies that can be removed, minimized, or repurposed for savings. Cost optimization for Datadog, like other cloud tools, requires a clear understanding of where your money is going. Only then can you efficiently determine what to cut or retain without compromising your monitoring and observability capabilities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Organizations experiment with various workarounds to optimize Datadog costs, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reducing the time logs are kept in Datadog<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ingesting a portion of logs without retaining them, dealing with log rehydration when necessary<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ingesting fewer logs altogether potentially hinders observability and monitoring<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">However, these workarounds are not ideal. They can hinder insights and negatively impact regulatory compliance. Instead, here are five legitimate ways to reduce your Datadog costs without sacrificing your ability to derive actionable insights.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"7_Pro_Tips_for_Managing_and_Reducing_Datadog_Costs\"><\/span><span style=\"font-weight: 400; color: #000080;\">7 Pro Tips for Managing and Reducing Datadog Costs<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Here are seven pro tips to manage and reduce your Datadog costs.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Turning_off_log_management\"><\/span><span style=\"font-weight: 400;\">1. Turning off log management<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">One of Datadog\u2019s more resource-intensive features is log management, which allows you to view ingested logs in real-time across all your environments. If you\u2019re not using this feature extensively, consider turning it off. To do this, go to your Datadog dashboard, navigate to the &#8216;Logs&#8217; section, and review your log management settings. Disabling unnecessary log collection can significantly reduce costs, especially for businesses not reliant on real-time log data.<\/span><\/p>\n<figure id=\"attachment_96759\" aria-describedby=\"caption-attachment-96759\" style=\"width: 2560px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-96759 size-full\" src=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-log-management-scaled.webp\" alt=\"datadog log management\" width=\"2560\" height=\"1369\" srcset=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-log-management-scaled.webp 2560w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-log-management-300x160.webp 300w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-log-management-1024x547.webp 1024w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-log-management-768x411.webp 768w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-log-management-1536x821.webp 1536w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-log-management-2048x1095.webp 2048w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-log-management-150x80.webp 150w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><figcaption id=\"caption-attachment-96759\" class=\"wp-caption-text\">Image Source: datadoghq.com<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Alternatively, you can limit your logging by assessing which logs you must collect and for how long. Datadog\u2019s Flex Logs feature enables you to flexibly choose your querying capacity, retention period, and the number of places your logs need storage. This way, you can effectively optimize your log management settings to balance cost and necessity.<\/span><\/p>\n<figure id=\"attachment_96760\" aria-describedby=\"caption-attachment-96760\" style=\"width: 925px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-96760 size-full\" src=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadogs-Flex-Logs.webp\" alt=\"Datadog\u2019s Flex Logs\" width=\"925\" height=\"425\" srcset=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadogs-Flex-Logs.webp 925w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadogs-Flex-Logs-300x138.webp 300w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadogs-Flex-Logs-768x353.webp 768w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadogs-Flex-Logs-150x69.webp 150w\" sizes=\"(max-width: 925px) 100vw, 925px\" \/><figcaption id=\"caption-attachment-96760\" class=\"wp-caption-text\">Image Source: datadoghq.com<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"2_Turning_on_spike_alerts\"><\/span><span style=\"font-weight: 400;\">2. Turning on spike alerts<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You can set up spike alerts in Datadog to keep tabs on unexpected cost surges. These alerts notify you when there\u2019s a sudden increase in usage or cost, allowing you to address issues before they inflate your Datadog bill.<\/span><\/p>\n<figure id=\"attachment_96761\" aria-describedby=\"caption-attachment-96761\" style=\"width: 1694px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"size-full wp-image-96761\" src=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-spike-alerts.webp\" alt=\"datadog spike alerts\" width=\"1694\" height=\"1107\" srcset=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-spike-alerts.webp 1694w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-spike-alerts-300x196.webp 300w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-spike-alerts-1024x669.webp 1024w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-spike-alerts-768x502.webp 768w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-spike-alerts-1536x1004.webp 1536w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-spike-alerts-150x98.webp 150w\" sizes=\"(max-width: 1694px) 100vw, 1694px\" \/><figcaption id=\"caption-attachment-96761\" class=\"wp-caption-text\">Image Source: datadoghq.com<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Datadog&#8217;s Watchdog feature detects anomalies in near real-time across your ingested logs. It identifies significant increases in the number of logs with a warning, error, or above status level relative to historical baselines. Watchdog analyzes your data to understand when log behavior changes substantially enough to cause concern.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To set up these alerts, follow these steps:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Go to the \u2018Monitors\u2019 Section<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Log in to your Datadog dashboard.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Navigate to the &#8216;Monitors&#8217; section.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Create a New Monitor<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Click on the &#8216;New Monitor&#8217; button.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Select the type of monitor you want to create (e.g., &#8216;Log Monitor&#8217;).<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Configure the Alert Conditions<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Define the conditions for the alert, such as the threshold for the number of logs with a warning or error status.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Set the alert frequency and notification preferences.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Set Up Watchdog<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Enable Watchdog to monitor your logs for anomalies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Configure it to detect significant changes in log behavior and notify you when concerns arise.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Save and Test the Monitor<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Save your new monitor.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Test the monitor to ensure it triggers alerts appropriately based on your defined conditions.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<figure id=\"attachment_96788\" aria-describedby=\"caption-attachment-96788\" style=\"width: 1288px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-96788 size-full\" src=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-monitoring.webp\" alt=\"datadog monitoring\" width=\"1288\" height=\"624\" srcset=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-monitoring.webp 1288w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-monitoring-300x145.webp 300w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-monitoring-1024x496.webp 1024w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-monitoring-768x372.webp 768w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-monitoring-150x73.webp 150w\" sizes=\"(max-width: 1288px) 100vw, 1288px\" \/><figcaption id=\"caption-attachment-96788\" class=\"wp-caption-text\">Image Source: datadoghq.com<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"3_Uninstalling_Datadog_Agent\"><\/span><span style=\"font-weight: 400;\">3. Uninstalling Datadog Agent\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The Datadog Agent is a crucial component for monitoring your infrastructure, but it can also add to your costs when installed on inactive or underused servers. To optimize your Datadog expenses, it&#8217;s essential to remove agents from servers or instances that are no longer needed.<\/span><\/p>\n<p><b>Steps to Optimize by Uninstalling Datadog Agents:<\/b><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Audit Your Infrastructure<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Conduct a thorough audit to identify servers or instances where the Datadog Agent is no longer necessary. This includes servers for short-term projects, inactive test environments, or decommissioned systems.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Identify any redundant or underutilized instances and remove the Datadog Agent from them.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Uninstalling the Datadog Agent<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>For Windows Servers<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Open the &#8216;Add or Remove Programs&#8217; feature in the Control Panel.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Find the Datadog Agent in the list of installed programs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Click &#8216;Uninstall&#8217; to remove the agent.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>For Linux Servers<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Use the package manager that was used to install the agent. For example, if you used apt, the command would be:<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>For macOS<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Run the uninstall command provided in Datadog&#8217;s documentation. Typically, this command can be found in the agent&#8217;s installation directory. An example command might be:<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">By following these steps, you can ensure that Datadog Agents are only running on necessary servers, helping to optimize your monitoring costs effectively.<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-96770\" src=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-agents.webp\" alt=\"datadog agents\" width=\"1248\" height=\"710\" srcset=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-agents.webp 1248w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-agents-300x171.webp 300w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-agents-1024x583.webp 1024w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-agents-768x437.webp 768w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-agents-150x85.webp 150w\" sizes=\"(max-width: 1248px) 100vw, 1248px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Reducing_unused_tags\"><\/span><span style=\"font-weight: 400;\">4. Reducing unused tags<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Tags in Datadog are not just a tool for sorting and visualizing data; they are a powerful resource for optimizing data management and reducing costs. By following these steps, you can harness the full potential of your tagging strategy.<\/span><\/p>\n<figure id=\"attachment_96762\" aria-describedby=\"caption-attachment-96762\" style=\"width: 1280px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"size-full wp-image-96762\" src=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-unused-tags.webp\" alt=\"datadog unused tags\" width=\"1280\" height=\"960\" srcset=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-unused-tags.webp 1280w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-unused-tags-300x225.webp 300w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-unused-tags-1024x768.webp 1024w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-unused-tags-768x576.webp 768w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/datadog-unused-tags-150x113.webp 150w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><figcaption id=\"caption-attachment-96762\" class=\"wp-caption-text\">Image Source: datadoghq.com<\/figcaption><\/figure>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Audit Your Tags<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Review all the tags currently in use.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Identify and eliminate non-essential tags to reduce data processing overhead.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Implement Tag Policies<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Use tag policies to ensure that only authorized tags are used.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Datadog allows you to set up the following rules for tag policies:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>Require Tags Only<\/b><span style=\"font-weight: 400;\">: Ensure all metrics and logs have specific required tags.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>Require Tags with Mandatory Values<\/b><span style=\"font-weight: 400;\">: Ensure certain tags have specific mandatory values.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>Optional Tags with Mandatory Values<\/b><span style=\"font-weight: 400;\">: Allow optional tags, but if used, they must have particular values.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Review and Adjust Your Tagging Strategy<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Ensure that only relevant tags are applied to your metrics and logs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Consolidate similar tags to reduce the overall number of tags in use.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Implement Tag Policies in Datadog<\/b><span style=\"font-weight: 400;\">:<\/span><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Go to the Datadog dashboard.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Navigate to the &#8216;Monitors&#8217; section.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Set up policies according to your requirements to block monitors with unauthorized tags from being created.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Leveraging_committed_use_discounts\"><\/span><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"alignnone size-full wp-image-96772\" src=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/tag-policies-datadog-scaled.webp\" alt=\"tag policies datadog\" width=\"2560\" height=\"1370\" srcset=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/tag-policies-datadog-scaled.webp 2560w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/tag-policies-datadog-300x161.webp 300w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/tag-policies-datadog-1024x548.webp 1024w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/tag-policies-datadog-768x411.webp 768w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/tag-policies-datadog-1536x822.webp 1536w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/tag-policies-datadog-2048x1096.webp 2048w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/tag-policies-datadog-150x80.webp 150w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/>5. Leveraging committed use discounts<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Datadog has monthly minimum usage commitments for infrastructure, APM, log management, and database monitoring. While not all rates are publicly shared, container monitoring provides a clear example of potential savings: prepaid containers cost $1 monthly. In contrast, on-demand containers cost $0.002 per container per hour.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Compared to on-demand pricing, prepaid containers save $0.44 per container in a 30-day month. For 1,000 containers, this translates to monthly savings of $440 and annual savings of $5,280. Committing to prepaid containers can significantly reduce costs as your application scales.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"6_Reconsidering_and_monitoring_custom_metrics\"><\/span><span style=\"font-weight: 400;\">6. Reconsidering and monitoring custom metrics<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Datadog deems a metric custom if it doesn\u2019t come from one of its 600+ integrations. Each custom metric is identifiable by name and tag values (such as host tags). The Pro plan offers 100 custom metrics per host, while the Enterprise plan offers 200.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Metrics are pooled across hosts. For example, 1,000 custom metrics are allotted for every ten hosts monitored. By configuring only some hosts for custom metrics, you can assign 400 custom metrics to two hosts and 200 to the remaining eight (such as build servers).<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"7_Using_ingestion_controls_and_retention_filters\"><\/span><span style=\"font-weight: 400;\">7. Using ingestion controls and retention filters<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Datadog allows you to set ingestion controls to send only essential traces from your applications. Additionally, you can use retention filters to specify how long each indexed span is retained as soon as traces arrive. Adjusting these settings effectively can help reduce overages on APM costs.<\/span><\/p>\n<figure id=\"attachment_96764\" aria-describedby=\"caption-attachment-96764\" style=\"width: 1053px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"size-full wp-image-96764\" src=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/ingestion-control-datadog.webp\" alt=\"ingestion control on datadog\" width=\"1053\" height=\"634\" srcset=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/ingestion-control-datadog.webp 1053w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/ingestion-control-datadog-300x181.webp 300w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/ingestion-control-datadog-1024x617.webp 1024w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/ingestion-control-datadog-768x462.webp 768w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/ingestion-control-datadog-150x90.webp 150w\" sizes=\"(max-width: 1053px) 100vw, 1053px\" \/><figcaption id=\"caption-attachment-96764\" class=\"wp-caption-text\">Image Source: datadoghq.com<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"Features_of_Datadog\"><\/span><span style=\"font-weight: 400;\">Features of Datadog<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Datadog offers a variety of features, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Monitoring<\/b><span style=\"font-weight: 400;\">: Datadog can monitor servers, databases, tools, and services across multiple cloud providers. It collects metrics, logs, and traces from these systems, displaying them in a unified dashboard.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Alerting<\/b><span style=\"font-weight: 400;\">: Datadog sends alerts when metrics or logs exceed predefined thresholds. Alerts can be sent via email, Slack, or PagerDuty.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Dashboards<\/b><span style=\"font-weight: 400;\">: Datadog allows the creation of custom dashboards to display metrics, logs, and traces, which can be shared with other users.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reporting<\/b><span style=\"font-weight: 400;\">: Datadog generates reports on metrics, logs, and traces, helping track performance over time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Security<\/b><span style=\"font-weight: 400;\">: Datadog monitors for security threats, such as unauthorized access or data breaches.<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_96765\" aria-describedby=\"caption-attachment-96765\" style=\"width: 990px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-96765 size-full\" src=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadog-Features.webp\" alt=\"Datadog Features\" width=\"990\" height=\"1088\" srcset=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadog-Features.webp 990w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadog-Features-273x300.webp 273w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadog-Features-932x1024.webp 932w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadog-Features-768x844.webp 768w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadog-Features-150x165.webp 150w\" sizes=\"(max-width: 990px) 100vw, 990px\" \/><figcaption id=\"caption-attachment-96765\" class=\"wp-caption-text\">Image Source: datadoghq.com<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"Understanding_Datadog_Pricing_Strategy\"><\/span><span style=\"font-weight: 400;\">Understanding Datadog Pricing Strategy<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Datadog pricing is usage-based and varies depending on the specific monitoring services you use. Monitoring infrastructure costs differ from tracking application performance metrics, among other services. Several variables influence pricing, including charges per host, user, GB of data, by spending, or per session\/test\/function\/run.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The free tier provides core monitoring capabilities with limited data retention. More advanced plans include full-scale Application Performance Monitoring (APM), log management, and anomaly detection features. The pricing structure is primarily based on the volume of data monitored and the number of users. This allows businesses to select a plan that fits their size and requirements, with the flexibility to scale as they grow.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">For instance, Datadog charges per host per month for infrastructure monitoring. A host is defined as any virtual or physical OS instance being monitored, such as a server, virtual machine (VM), Kubernetes node, or Azure App Service Plan instance. The service is free for up to five hosts with 1-day full-resolution data retention. Beyond that, Datadog plans start at $15 per monthly host, with volume discounts available for usage exceeding 600 hosts.<\/span><\/p>\n<figure id=\"attachment_96766\" aria-describedby=\"caption-attachment-96766\" style=\"width: 2238px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-96766 size-full\" src=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadog-Pricing.webp\" alt=\"Datadog Pricing\" width=\"2238\" height=\"1434\" srcset=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadog-Pricing.webp 2238w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadog-Pricing-300x192.webp 300w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadog-Pricing-1024x656.webp 1024w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadog-Pricing-768x492.webp 768w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadog-Pricing-1536x984.webp 1536w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadog-Pricing-2048x1312.webp 2048w, https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/06\/Datadog-Pricing-150x96.webp 150w\" sizes=\"(max-width: 2238px) 100vw, 2238px\" \/><figcaption id=\"caption-attachment-96766\" class=\"wp-caption-text\">Image Source: datadoghq.com<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"Why_is_Datadog_so_expensive\"><\/span><span style=\"font-weight: 400;\">Why is Datadog so expensive?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Monitoring costs can add up quickly with Datadog. For instance, the service can pull substantial logs in microservices environments, increasing ingestion costs. Additionally, Datadog charges higher data retention fees the longer you store monitoring metrics and logs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Datadog also charges $1 per container per month (for committed use), meaning costs can escalate significantly as your containerized application scales.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Building your cloud monitoring stack with open-source tools like Grafana and Prometheus can be time-consuming, require substantial skill, and may be more expensive than using a SaaS service like Datadog.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, like most engineers, CTOs, and CFOs, you are likely under pressure to keep costs low and ROI high. Instead of indiscriminately slashing your Datadog cloud monitoring costs, it is more effective to optimize them.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Summary\"><\/span><span style=\"font-weight: 400;\">Summary\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">I hope this blog helps you understand Datadog costs and how you can implement cost optimization to save your precious dollars and utilize them where needed. These are just a few strategies. Various other ways, like contacting your account manager, reducing egress charges, choosing the right commitment level, etc., will help reduce Datadog costs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Check out our Whizlabs resources, such as practice papers, detailed video lectures by industrial experts, and <a href=\"https:\/\/www.whizlabs.com\/labs\/library\/\" target=\"_blank\" rel=\"noopener\">hands-on labs<\/a>\u00a0to learn more about the Datadog certification and gain holistic skills to deal with Datadog in the real world.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A significant chunk of Datadog&#8217;s costs includes the massive overall cloud bills. Unfortunately, despite using internal cost management tools, Datadog fails to break down and cushion these costs. However, to implement Datadog strategies, one must thoroughly know how Datadog works. And one of the easiest ways to do this is to certify yourself with the\u00a0Datadog Fundamentals course. This course not only helps you learn the Datadog features but also allows you to master skills for visualizing system metrics in Datadog, explore advanced log aggregation techniques, and set of monitors and notifications, ensuring timely alerts for any server or application performance [&hellip;]<\/p>\n","protected":false},"author":382,"featured_media":96786,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center 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