Datadog Observability Logging Costs: A Comprehensive Analysis

Introduction

Datadog is a widely-used platform for monitoring and observability, offering robust log management and analytics solutions. However, its pricing model can be complex, particularly because it heavily depends on the size of individual log events. This article explores Datadog’s pricing for log management, focusing on scenarios where organizations handle 100 GB and 1,000 GB of log data per day, with storage durations of 30 days in hot storage and 365 days in archival storage.

Understanding Datadog’s Pricing Model

Datadog’s pricing for log management is influenced by several key factors:

- Ingestion: Datadog charges $0.10 per GB of logs ingested per month.

- Indexing: The cost of indexed log events is $2.50 per million indexed logs (with a 30-day retention). The number of log events is critical here—smaller log events mean more events per GB, driving up costs.

- Forwarding to Custom Destinations: Forwarding logs to destinations like S3 incurs a charge of $0.25 per GB per destination, per month, in addition to standard S3 storage fees.

- Archiving: After the initial 30-day retention period, logs can be archived to object storage such as S3 at a lower cost, which can help manage long-term storage expenses.

Event Size Impact on Costs

The size of individual log events plays a significant role in determining costs:

- Small Events (250 Bytes): Smaller events lead to a higher number of events per GB, resulting in increased indexing costs.

- Medium Events (1 KB): A moderate number of events per GB, leading to a balanced cost.

- Large Events (256 KB): Fewer events per GB, resulting in significantly lower indexing costs.

Cost Breakdown for 100 GB/day

Here’s how costs can vary based on different log event sizes:

- Scenario 1: Event Size of 250 Bytes

- Ingestion: $300/month

- Indexing: 12.58 billion events * $2.50 per million = $31,457/month

- Forwarding: $750/month

- Archiving: $839.50/month (S3 cost)

- Total Monthly Cost: $33,346.50

- Total Annual Cost: $400,158/year

- Scenario 2: Event Size of 1 KB

- Ingestion: $300/month

- Indexing: 3.15 billion events * $2.50 per million = $7,864/month

- Forwarding: $750/month

- Archiving: $839.50/month (S3 cost)

- Total Monthly Cost: $9,753.50

- Total Annual Cost: $117,042/year

- Scenario 3: Event Size of 256 KB

- Ingestion: $300/month

- Indexing: 12.29 million events * $2.50 per million = $30.72/month

- Forwarding: $750/month

- Archiving: $839.50/month (S3 cost)

- Total Monthly Cost: $1,920.22

- Total Annual Cost: $23,042.64/year

Cost Breakdown for 1,000 GB/day

For larger organizations managing 1,000 GB of log data per day:

- Scenario 1: Event Size of 250 Bytes

- Ingestion: $3,000/month

- Indexing: 125.83 billion events * $2.50 per million = $314,573/month

- Forwarding: $7,500/month

- Archiving: $8,395/month (S3 cost)

- Total Monthly Cost: $333,468

- Total Annual Cost: $4,001,616/year

- Scenario 2: Event Size of 1 KB

- Ingestion: $3,000/month

- Indexing: 31.46 billion events * $2.50 per million = $78,640/month

- Forwarding: $7,500/month

- Archiving: $8,395/month (S3 cost)

- Total Monthly Cost: $97,535

- Total Annual Cost: $1,170,420/year

- Scenario 3: Event Size of 256 KB

- Ingestion: $3,000/month

- Indexing: 122.88 million events * $2.50 per million = $307.20/month

- Forwarding: $7,500/month

- Archiving: $8,395/month (S3 cost)

- Total Monthly Cost: $19,202.20

- Total Annual Cost: $230,426.40/year

Conclusion

Datadog offers a powerful log management solution with a pricing model that can be both flexible and complex. The cost heavily depends on the size of the log events being ingested. Smaller log events, such as 250 bytes, can significantly increase costs due to the higher number of events per GB, driving up indexing costs. Conversely, larger log events like 256 KB result in lower indexing costs, making Datadog more cost-effective.

For organizations managing 100 GB/day, total annual costs can range from $23,042.64/year to $400,158/year depending on the event size. For those handling 1,000 GB/day, costs range from $230,426.40/year to $4,001,616/year. This variability underscores the importance of carefully considering log event size and data volume when evaluating Datadog for log management needs.

Disclaimer: The pricing details mentioned are based on data available at the time of publication and may vary depending on factors such as discounts, regional pricing, and specific contract terms. For the most accurate and up-to-date pricing information, please visit the [Datadog Pricing page](https://www.datadoghq.com/pricing/).