title: “Prometheus vs Datadog vs New Relic 2025 Guide” date: 2025-04-10T09:00:00+00:00 lastmod: 2025-09-05T10:00:00+00:00 draft: false description: “2025 monitoring comparison with Prometheus, Datadog, and New Relic pricing, feature matrix, and migration guidance.” summary: “Updated 2025 Prometheus vs Datadog vs New Relic guide featuring a TL;DR pricing matrix, feature parity checklist, and migration recommendations.” tags: - monitoring - prometheus - observability - devops - metrics featured_image: “images/monitoring.jpg” slug: “prometheus-datadog-newrelic-monitoring-comparison” author: jnas og_title: “Prometheus vs Datadog vs New Relic 2025 Guide” og_description: “Compare top monitoring platforms for modern applications: open-source vs commercial solutions, scaling strategies, and cost optimization.”
Need the quick answer? Screenshot the matrix below to share pricing and feature parity in your FinOps or SRE review.
2025 Monitoring TL;DR
Scenario | Recommended Platform | Est. Monthly Cost (10 hosts) | Why It Fits | Watch Outs |
---|---|---|---|---|
Greenfield Kubernetes startup | Prometheus + Grafana Cloud | ~$450 (managed) | No host tax, OpenMetrics flexibility | Must budget for oncall expertise |
Mid-market SaaS with full-stack APM | Datadog | ~$1,800 (Pro plan, logs extra) | Best-in-class Kubernetes + synthetic coverage | Pricing spikes with high log volume |
Enterprise with business analytics mandate | New Relic | ~$1,200 (all-in-one user licensing) | Bundled APM, RUM, dashboards under one SKU | Less granular control over ingest cost |
Hybrid multi-cloud with strict data control | Self-hosted Prometheus | Infrastructure + salary | Keeps data on-prem, integrates with Thanos/Cortex | Operability and storage planning required |
What to do next:
- Map your largest invoice line (hosts, logs, traces) to the matrix above.
- Identify at least one “shift-left” opportunity—sampling, retention, or synthetic consolidation.
- If you plan to migrate tools, build a dual-run plan that keeps alerts powered for 2 sprints.
Application monitoring has evolved from simple uptime checks to comprehensive observability platforms that provide metrics, logs, traces, and business insights. While Prometheus pioneered the open-source pull-based monitoring approach, commercial platforms like DataDog and New Relic offer integrated solutions with advanced analytics and machine learning capabilities.
The choice between open-source and commercial monitoring affects not just costs but also team workflows, data ownership, and long-term observability strategies. Modern applications demand real-time insights across distributed systems, making monitoring platform selection critical for operational excellence.
Architecture and Data Collection
Understanding the fundamental architectures reveals each platform’s strengths and limitations:
Feature | Prometheus | DataDog | New Relic |
---|---|---|---|
Collection Model | Pull-based scraping | Agent-based push | Agent-based push |
Data Storage | Time-series (TSDB) | Proprietary | Proprietary cloud |
Retention | Configurable (local) | 15 months (paid) | 8 days-13 months |
Data Format | OpenMetrics/Prometheus | Proprietary | Proprietary |
High Availability | Manual clustering | Built-in | Built-in |
Query Language | PromQL | Custom + SQL | NRQL |
Prometheus Pull-Based Architecture
Prometheus scrapes metrics from configured endpoints at regular intervals:
# Prometheus configuration
global:
scrape_interval: 15s
evaluation_interval: 15s
scrape_configs:
- job_name: 'kubernetes-pods'
kubernetes_sd_configs:
- role: pod
relabel_configs:
- source_labels: [__meta_kubernetes_pod_annotation_prometheus_io_scrape]
action: keep
regex: true
- source_labels: [__meta_kubernetes_pod_annotation_prometheus_io_path]
action: replace
target_label: __metrics_path__
regex: (.+)
// Go application metrics exposition
package main
import (
"net/http"
"github.com/prometheus/client_golang/prometheus"
"github.com/prometheus/client_golang/prometheus/promhttp"
)
var (
httpRequests = prometheus.NewCounterVec(
prometheus.CounterOpts{
Name: "http_requests_total",
Help: "Total number of HTTP requests",
},
[]string{"method", "status"},
)
)
func init() {
prometheus.MustRegister(httpRequests)
}
func handler(w http.ResponseWriter, r *http.Request) {
httpRequests.WithLabelValues(r.Method, "200").Inc()
w.Write([]byte("Hello World"))
}
func main() {
http.HandleFunc("/", handler)
http.Handle("/metrics", promhttp.Handler())
http.ListenAndServe(":8080", nil)
}
DataDog Agent-Based Collection
DataDog agents push metrics to the platform with automatic discovery:
# DataDog Agent configuration
api_key: "your-api-key"
site: "datadoghq.com"
logs_enabled: true
process_config:
enabled: true
apm_config:
enabled: true
# Custom metrics
init_config:
instances:
- prometheus_url: http://localhost:8080/metrics
namespace: "myapp"
metrics:
- http_requests_total
- go_memstats_alloc_bytes
# Python application with DataDog integration
from datadog import initialize, statsd
import time
initialize(
api_key='your-api-key',
app_key='your-app-key'
)
# Custom metrics
@statsd.timed('myapp.request.duration')
def process_request():
statsd.increment('myapp.request.count')
# Application logic
time.sleep(0.1)
statsd.gauge('myapp.queue.size', 42)
New Relic Agent Integration
New Relic provides language-specific agents with automatic instrumentation:
// Node.js application with New Relic
require('newrelic');
const express = require('express');
const app = express();
// Custom events and metrics
const newrelic = require('newrelic');
app.get('/api/users', (req, res) => {
// Custom metric
newrelic.recordMetric('Custom/API/Users/RequestCount', 1);
// Custom event
newrelic.recordCustomEvent('UserAPIAccess', {
userId: req.user.id,
endpoint: '/api/users',
responseTime: Date.now() - req.startTime
});
res.json({ users: [] });
});
Metrics Collection and Storage
Performance and Scale Characteristics
Metric | Prometheus | DataDog | New Relic |
---|---|---|---|
Ingestion Rate | 100K-1M samples/sec¹ | 10M+ metrics/sec² | 1M+ events/sec² |
Storage Efficiency | 1.3 bytes/sample¹ | Compressed cloud² | Cloud-optimized² |
Query Performance | Fast (local TSDB)¹ | Fast (distributed)² | Fast (distributed)² |
Cardinality Limits | High (millions)¹ | Very high² | Very high² |
Retention Cost | Storage-based¹ | Linear pricing² | Tiered pricing² |
¹ Prometheus official documentation and CNCF performance studies
² Vendor-reported performance metrics and customer case studies
Data Model Comparison
Prometheus metrics use labels for dimensionality:
# PromQL queries
http_requests_total{job="api-server", status="200"}
rate(http_requests_total[5m])
histogram_quantile(0.95, http_request_duration_seconds_bucket)
# Complex aggregations
sum(rate(http_requests_total[5m])) by (service)
increase(error_count[1h]) > 100
DataDog metrics support tags and advanced analytics:
-- DataDog query syntax
avg:system.cpu.user{environment:production} by {host}
sum:myapp.requests.count{status:error}.as_rate()
anomalies(avg:myapp.response_time{service:api}, 'basic', 2)
New Relic NRQL provides SQL-like querying:
-- NRQL queries
SELECT average(duration) FROM Transaction WHERE appName = 'MyApp'
SELECT count(*) FROM Transaction FACET name TIMESERIES
SELECT percentile(responseTime, 95) FROM PageView SINCE 1 hour ago
Alerting and Incident Management
Alert Configuration Approaches
Prometheus Alertmanager configuration:
# Alertmanager rules
groups:
- name: api.rules
rules:
- alert: HighErrorRate
expr: rate(http_requests_total{status=~"5.."}[5m]) > 0.1
for: 5m
labels:
severity: critical
annotations:
summary: "High error rate detected"
description: "{{ $labels.job }} has error rate above 10%"
- alert: HighLatency
expr: histogram_quantile(0.95, rate(http_request_duration_seconds_bucket[5m])) > 0.5
for: 2m
labels:
severity: warning
# Routing configuration
route:
group_by: ['alertname']
group_wait: 10s
group_interval: 10s
repeat_interval: 1h
receiver: 'web.hook'
receivers:
- name: 'web.hook'
slack_configs:
- api_url: 'https://hooks.slack.com/services/...'
channel: '#alerts'
DataDog monitors with machine learning:
{
"name": "High error rate on API",
"type": "metric alert",
"query": "avg(last_5m):sum:myapp.requests.error{service:api}.as_rate() > 0.1",
"message": "Error rate is above 10% @slack-alerts",
"tags": ["service:api", "team:backend"],
"options": {
"thresholds": {
"critical": 0.1,
"warning": 0.05
},
"notify_no_data": true,
"require_full_window": false
}
}
New Relic alerting with conditions:
// New Relic alert via API
const alert = {
policy: {
name: "API Performance Policy",
incident_preference: "PER_CONDITION"
},
conditions: [{
type: "apm_app_metric",
name: "High Response Time",
entities: ["application-id"],
metric: "response_time_web",
condition_scope: "application",
terms: [{
duration: "5",
operator: "above",
priority: "critical",
threshold: "0.5",
time_function: "all"
}]
}]
};
Incident Response Integration
Feature | Prometheus | DataDog | New Relic |
---|---|---|---|
On-call Management | External tools | Built-in + integrations | Built-in + integrations |
Escalation Policies | Via Alertmanager | Native | Native |
Incident Timeline | External | Automated | Automated |
Root Cause Analysis | Manual | ML-assisted | ML-assisted |
Notification Channels | Webhook-based | 400+ integrations | 100+ integrations |
Visualization and Dashboards
Dashboard Creation and Sharing
Grafana with Prometheus:
{
"dashboard": {
"title": "API Performance Dashboard",
"panels": [
{
"title": "Request Rate",
"type": "graph",
"targets": [
{
"expr": "sum(rate(http_requests_total[5m])) by (service)",
"legendFormat": "{{ service }}"
}
]
},
{
"title": "Error Rate",
"type": "singlestat",
"targets": [
{
"expr": "sum(rate(http_requests_total{status=~\"5..\"}[5m])) / sum(rate(http_requests_total[5m]))"
}
]
}
]
}
}
DataDog native dashboards:
{
"title": "Application Overview",
"widgets": [
{
"definition": {
"type": "timeseries",
"requests": [
{
"q": "avg:myapp.response_time{service:api}",
"display_type": "line"
}
],
"title": "Response Time"
}
},
{
"definition": {
"type": "toplist",
"requests": [
{
"q": "top(avg:myapp.errors{*} by {endpoint}, 10, 'mean', 'desc')"
}
]
}
}
]
}
Visualization Capabilities
Feature | Prometheus/Grafana | DataDog | New Relic |
---|---|---|---|
Chart Types | 20+ via Grafana | 15+ native | 10+ native |
Custom Queries | Full PromQL | Custom + SQL | NRQL |
Template Variables | Advanced | Basic | Basic |
Embedding | Public/private | Team sharing | Account sharing |
Mobile Access | Responsive | Native apps | Native apps |
Cost Analysis and Pricing Models
Pricing Structure Comparison
Factor | Prometheus | DataDog | New Relic |
---|---|---|---|
Base Cost | Free (self-hosted) | $15/host/month | $25/100GB/month |
Storage Costs | Infrastructure | Included | Included |
Ingestion Costs | None | $0.10/1M metrics | $0.25/GB |
User Limits | None | Per user pricing | Full platform access |
Data Retention | Custom | 15 months max | 13 months max |
Enterprise Features | OSS + support | Enterprise tier | Enterprise tier |
Total Cost of Ownership
Prometheus self-hosted (100 services):
# Infrastructure costs (annual)
Compute: 3 x c5.xlarge = $3,000
Storage: 1TB SSD = $1,200
Networking: Data transfer = $500
Staff: 0.5 FTE DevOps = $75,000
Total: ~$79,700/year
DataDog hosted (100 hosts):
# DataDog pricing (annual)
Infrastructure Monitoring: 100 hosts × $15 × 12 = $18,000
APM: 100 hosts × $31 × 12 = $37,200
Log Management: 50GB/day × $1.27 × 365 = $23,206
Custom Metrics: 1M/month × $0.05 × 12 = $600
Total: ~$79,006/year
New Relic One (100GB/month):
# New Relic pricing (annual)
Platform: $25/100GB × 12 = $300 (first 100GB)
Additional Data: 500GB × $0.25 × 12 = $1,500
Enterprise Features: $750/month × 12 = $9,000
Total: ~$10,800/year
Observability and Integration
APM and Distributed Tracing
Prometheus with Jaeger:
// OpenTelemetry with Prometheus metrics
import (
"go.opentelemetry.io/otel"
"go.opentelemetry.io/otel/exporters/prometheus"
"go.opentelemetry.io/otel/exporters/jaeger"
)
func initTracing() {
// Jaeger for traces
jaegerExporter, _ := jaeger.New(
jaeger.WithCollectorEndpoint("http://jaeger:14268/api/traces"),
)
// Prometheus for metrics
promExporter, _ := prometheus.New()
tracerProvider := trace.NewTracerProvider(
trace.WithBatcher(jaegerExporter),
)
otel.SetTracerProvider(tracerProvider)
}
DataDog APM integration:
# Python APM with DataDog
from ddtrace import patch_all, tracer
patch_all()
@tracer.wrap("database.query")
def query_database(query):
with tracer.trace("db.execute") as span:
span.set_tag("db.statement", query)
span.set_tag("service.name", "user-service")
return execute_query(query)
New Relic distributed tracing:
// Node.js with New Relic
const newrelic = require('newrelic');
async function processOrder(orderId) {
return newrelic.startBackgroundTransaction('process-order', async () => {
const span = newrelic.getTransaction();
span.addAttribute('orderId', orderId);
// Process order logic
await paymentService.charge(order);
await inventoryService.reserve(order);
return order;
});
}
Enterprise Features and Security
Security and Compliance
Feature | Prometheus | DataDog | New Relic |
---|---|---|---|
Data Encryption | TLS (manual) | TLS (automatic) | TLS (automatic) |
Access Control | Basic auth | RBAC + SSO | RBAC + SSO |
Audit Logging | Limited | Complete | Complete |
Compliance | Self-managed | SOC2, GDPR, HIPAA | SOC2, GDPR, HIPAA |
Data Residency | Self-controlled | Multi-region | Multi-region |
API Security | Token-based | Key + OAuth | Key + OAuth |
High Availability and Scaling
Prometheus HA setup:
# Prometheus HA with Thanos
version: '3'
services:
prometheus-1:
image: prom/prometheus
command:
- '--storage.tsdb.path=/prometheus'
- '--config.file=/etc/prometheus/prometheus.yml'
- '--storage.tsdb.min-block-duration=2h'
- '--storage.tsdb.max-block-duration=2h'
volumes:
- ./prometheus.yml:/etc/prometheus/prometheus.yml
thanos-sidecar:
image: thanosio/thanos
command:
- 'sidecar'
- '--tsdb.path=/prometheus'
- '--prometheus.url=http://prometheus-1:9090'
- '--objstore.config-file=/bucket.yml'
Migration and Adoption Strategies
From Prometheus to Commercial
Organizations typically migrate incrementally:
Example Hybrid Monitoring Config (for illustration only)
# Hybrid monitoring approach
# Keep Prometheus for infrastructure metrics
# Add DataDog for APM and business metrics
apiVersion: v1
kind: ConfigMap
metadata:
name: prometheus-config
data:
prometheus.yml: |
global:
external_labels:
region: 'us-west-2'
environment: 'production'
remote_write:
- url: "https://api.datadoghq.com/api/v1/series"
basic_auth:
username: "datadog"
password: "api-key"
Note: This configuration is for demonstration purposes only and should be adapted, reviewed, and security-tested before any production use.
Tool Selection Framework
Choose Prometheus when:
- Open-source ecosystem is preferred
- Data sovereignty is critical
- Custom scaling requirements exist
- Cost optimization is priority
- Engineering team has monitoring expertise
Choose DataDog when:
- Rapid deployment is needed
- Comprehensive feature set required
- Multi-cloud environment
- Business metrics integration important
- Managed service preferred
Choose New Relic when:
- Application performance focus
- Simple pricing model preferred
- Full-stack observability needed
- AI-powered insights valuable
- Quick time-to-value required
The monitoring landscape continues evolving with observability becoming table stakes for modern applications. Prometheus remains the gold standard for infrastructure monitoring with its pull-based model and extensive ecosystem. DataDog excels as a comprehensive platform for organizations seeking managed services and advanced analytics. New Relic focuses on application performance with simplified pricing and AI-powered insights.
Code Samples and Benchmarks Disclaimer
Important Note: All code examples, configurations, monitoring setups, and performance benchmarks provided in this article are for educational and demonstration purposes only. These samples are simplified for clarity and should not be used directly in production environments without proper review, security assessment, and adaptation to your specific requirements. Performance metrics are based on specific test conditions and may vary significantly in real-world deployments. Always conduct thorough testing, follow security best practices, and consult official documentation before implementing any monitoring solution in production systems.
Further Reading
- Prometheus Documentation
- DataDog Documentation
- New Relic Documentation
- Grafana Documentation
- OpenTelemetry Standards
Related Reading
- FinOps Best Practices 2025: Cloud Cost Playbook
- ARM vs x86 Cloud 2025 Benchmarks & ROI Guide
- HashiCorp Vault vs AWS Secrets vs Azure Key Vault 2025 Guide