
Introduction: Beyond Measurement – The Era of Understanding
In IT procurement, the first question is often: “How much does it cost?” But experience shows this can be misleading on its own. A good decision isn’t about the price tag – it’s about how quickly and effectively the investment pays off. An observability or monitoring tool isn’t inherently good or bad, expensive or cheap. The real question is: “Which solution best fits an organization’s size, maturity level, and critical business operations?” At Telvice, we emphasize delivering not just a “monitoring tool” but a return-generating, reliable, and business-aligned solution. We never recommend a system that benefits only us – only those that truly work for the company and create long-term value.
Now, let’s examine when each type of solution is the best choice – and why a premium, reliable approach pays off in the long run.
1. The True Cost of “Free” Open Source Tools
Open-source tools like Prometheus, Grafana or the ELK stack (which also have commercial enterprise editions), have been the first step toward system-wide monitoring for many IT teams. They’re accessible, customizable, and often functional at the outset.
One of the most common open source combinations is Prometheus + Grafana, widely used by organizations in the region. It’s important to distinguish between the free Grafana OSS (Open Source), which is primarily a visualization tool, and the enterprise-grade Grafana Enterprise edition. The latter is a paid solution that offers advanced features such as role-based access control, premium plugins, and enterprise support. However, even in the Enterprise version, deep AI capabilities, automation, and native root cause analysis are not built-in – these still rely on separate components and require additional integration.
But it’s crucial to recognize: these are not out-of-the-box, complete solutions. They rely on custom configurations, manual setup, and ongoing maintenance. Updates are manual, and if the system includes many distinct components, keeping them compatible and synchronized requires constant attention, version testing, and significant operational effort – all of which are automated in enterprise platforms like Dynatrace or Datadog.
Where Do They Work Well?
- Simple metric or log collection in homogeneous environments.
- Basic service monitoring with few components and low criticality.
- Environments with in-house expertise for daily tool management.
When Do They Become Problematic?
When the system is:
- Complex (microservices, containers, multi-cloud),
- Business-critical (where failures cause outages or reputational damage),
- Requires fast answers, prevention, and transparency – open-source solutions can’t keep up.
Typical Limitations & Hidden Costs:
- Separate monitoring stacks – requiring continuous technical upkeep.
- No built-in AI analytics or root-cause analysis – correlation and incident logic must be manually built.
- Fragmented data, siloed dashboards – insights rely on manual interpretation.
- Slower fault detection and resolution – time and human effort needed for analysis and fixes.
- Hidden costs: developer time, documentation, training, testing, compatibility maintenance, and compliance – expenses not visible behind the “zero-cost” label.
The biggest risk? A critical incident going undetected or unresolved – leading to downtime, poor customer experience, or reputational harm.
The Takeaway:
Open-source monitoring is useful for starting out or narrow, well-controlled use cases. But in enterprise environments – where maintainability, compatibility, scalability, and time-to-response are critical – an integrated enterprise solution is typically the more reliable and sustainable choice.
2. Modular Design, Limited Cohesion – Datadog’s Role in Larger Systems
Datadog is a widely adopted observability platform where features (infrastructure monitoring, APM, log management, security) are delivered as separate modules.
This approach works well for companies where:
- Monitoring needs evolve gradually,
- Different teams manage separate components,
- Internal capacity exists for configuration and integration.
Where Do Limitations Emerge?
Forrester and Dynatrace data show many organizations switch from Datadog to Dynatrace when:
- Systems become more dynamic (AI components, LLMs, multi-cloud),
- IT shifts from support to a business-critical role,
- Needs expand from data collection to context, causality, and actionable insights.
Key Challenges in Large-Scale Systems:
- Datadog’s modular design limits unified context. Synchronizing dashboards and products often requires manual work.
- Fault detection and root cause analysis relies on correlation – no native causal AI like Dynatrace’s Davis® AI.
- Limited generative AI: no natural-language queries across data types and components
- Complexity grows with scale – users report difficulty extracting quick insights despite data abundance.
- Unpredictable pricing: new modules mean added costs, and overages incur extra charges.
As one Datadog user aptly put it:
“What’s the point of monitoring if we can’t find the root cause?”
The Takeaway:
Datadog’s modular approach suits many scenarios, but when an organization’s size, complexity, or business exposure exceeds a threshold, coordinating siloed modules becomes the main challenge. Not every company faces this – but those needing unified, intelligent, proactive observability may seek alternatives.
The Dynatrace Approach – When Seeing Isn’t Enough, You Need to Understand
Dynatrace is a unified platform designed to make large-scale, modern IT environments transparent, interpretable, and actionable. The goal isn’t just measurement – it’s recognizing patterns, preventing issues, and driving intelligent decisions for technology and business outcomes.
This approach is transformative – but requires organizational maturity and openness.
Where Dynatrace Excels:
- Complex, dynamic systems (e.g. microservices, containers, multi-cloud),
- High digital exposure, where every second counts (e.g. banking, e-commerce, utilities),
- IT directly impacts customer experience, revenue, or brand reputation.
Here, Dynatrace isn’t just a tool – it’s a digital operations layer providing context, real-time answers, and automated intervention.
But this advantage requires:
- Moving beyond “we monitor because we have to”,
- Embracing organizational change: breaking silos, adopting a shared data language, and trusting AI-driven operations.
Davis® AI – Dynatrace’s Strongest Innovation
Dynatrace Davis® AI is one of the most advanced AI solutions in observability, elevating the concept to a new level. It interprets causality, supports decisions, and often acts autonomously.
Three Pillars of Davis AI:
- Causal AI: Identifies true root causes – no guessing, just factual correlations.
- Predictive AI: Forecasts anomalies, risks, and failures – proactively preventing issues.
- Generative AI: Lets users query system status, business impacts, or past events in natural language – returning precise, structured answers.
With Davis AI, organizations:
- Reduce operational burdens,
- Minimize business losses from prolonged failures,
- Free resources for higher-value work.
In Dynatrace, AI isn’t an add-on – it’s foundational, embedded in every layer.
Costs & ROI – What Does “More Expensive” Really Mean?
Dynatrace isn’t the cheapest solution. Licensing costs may be higher than open-source or modular tools. But cost here isn’t just currency. It’s time, errors, downtime, reputation, and human effort.
As a partner, Telvice helps organization:
- Optimize licensing for their needs,
- Ensure observability delivers business value, not just technical functionality.
Costs and ROI with Dynatrace
While Dynatrace may not be the lowest-cost solution on the market, its pricing is exceptionally transparent and predictable. The platform’s unified pricing model ensures customers know exactly what they’re paying for – with no hidden fees or surprise overages.
As an expert partner, Telvice helps organizations not only keep licensing costs under control but also align them precisely with business needs. With every implementation, our goal is to design an observability system that delivers maximum value at minimal cost.
4. Decision-Maker’s Guide – How to Choose Wisely?
Selecting an observability solution is a business decision affecting operations, team efficiency, customer experience, and IT cost structures.
A poor choice – even if seemingly cheap – can cost more long-term than a strategic investment.
The question isn’t “How much does the tool cost?” but:
- When does it pay off?
- How much operational and business risk does it reduce?
- What resources does it free up?
Observability Solutions Comparison: An Executive Decision-Maker’s Perspective
Criteria | Open source | Datadog | Dynatrace |
Initial Cost | Low / free | Mid-range, modular | Higher, subscription-based |
Cost Predictability | Low (hidden TCO) | Limited (module fees, overconsumption) | High (transparent DPS model) |
Implementation Time & Complexity | Long, manual setup | Faster start but config-heavy | Complete platform, rapid deployment (OneAgent) |
AI Capabilities | None built-in | Limited (correlation-based) | Advanced built-in causal-predictive-generative AI |
Automation | Manual intervention required | Basic, inconsistent | Deep automation: triage, prediction, remediation |
System Context & Root Cause | Manual correlation | Modular, partial visibility | Full system visibility, AI-driven root cause |
Business-IT Alignment | Not typical | Limited, requires development | Native support: business processes, KPIs, CX |
License Cost Optimization | Not available | Limited | High – Fully customizable with Telvice |
Enterprise Scalability | Difficult to maintain | Works temporarily | Strength – Designed for enterprise |
Need help selecting the right solution that delivers both technical and long-term business value? The Telvice team is here to assist! Contact us for a no-obligation consultation!