Dynatrace vs. Grafana: Observability is more than just visualization

Dynatrace vs. Grafana: Observability is more than just visualization - Dynatrace

Dynatrace and Grafana Enterprise compete in the same market – yet they represent fundamentally different approaches. Dynatrace is a full-stack, AI-powered observability platform designed for enterprise-scale environments. It offers automated data collection, real-time root cause analysis, and proactive issue management.

In contrast, Grafana – even in its Enterprise version – is primarily a visualization and dashboarding solution that relies on external data sources (e.g. Prometheus, Loki, InfluxDB). While comparing the two, Datadog is also worth mentioning as another widely adopted platform.

Let’s examine when each type of solution is the best fit – and why premium, reliable observability pays off in the long run.

1. Executive summary

Dynatrace’s strength lies in delivering end-to-end visibility from day one: through its auto-deploying OneAgent, integrated AI engine (Davis AI), and unified platform that covers infrastructure, applications, networking, user experience, and security. It’s ideal for organizations that need fast, reliable decision support in increasingly complex digital environments – without the burden of manual configuration.


Grafana Enterprise, on the other hand, is tailored to teams that want to build and maintain their own observability stack. Flexibility is its key advantage: dozens of data sources can be integrated, dashboards and access models are fully customizable – but true automation, intelligent analytics, and unified root cause analysis require third-party tools and manual work.

Simply put:

  • Dynatrace is for teams who want to go beyond visibility – to understand, predict, and prevent problems – with minimal manual intervention.
  • Grafana Enterprise is for teams that value flexibility, and have the in-house capacity to build, configure, and maintain their observability system.


1. A closer look at Grafana

Grafana originated in the world of visualization tools. It was originally designed to display time-series data from sources like Prometheus through interactive dashboards. Released in 2014 as an open-source project (Grafana OSS), it quickly became a DevOps favorite.


Grafana Labs took over its development and built a strong ecosystem around it: plugins, community support, and numerous compatible tools like Prometheus, Loki, and Tempo. In response to growing enterprise demand, Grafana Enterprise was introduced – offering features and support tailored to larger organizations.

OSS vs. Enterprise

Grafana OSS remains freely available but is mostly limited to dashboarding and basic alerting. Grafana Enterprise is subscription-based and includes a wide range of enterprise features – many of which are not available in any form in the OSS version.

FeatureGrafana OSSGrafana Enterprise
LicensingFree, open-sourceSubscription-based business license
VisualizationBasic dashboardingPremium plugins and advanced customization
AlertingBasic alertsCentralized alert management
AuthenticationGrafana-only authSAML, LDAP, OAuth, team sync
User ManagementBasicFine-grained RBAC
Data SourcesCore (e.g. Prometheus, InfluxDB)+ Premium (e.g. ServiceNow, Snowflake, Oracle, Dynatrace, Datadog)
ReportingLimitedScheduled PDF exports, email delivery
SupportCommunity-basedSLA-backed professional support
CustomizationBasic logo/menu optionsFull white labeling and UI branding
SecurityCore featuresAudit logs, encryption, compliance
ScalabilitySuitable for small setupsHigh-availability for large-scale enterprise environments
API Rate LimitsStandardIncreased or customizable limits
Multi-tenancyNot supportedBuilt-in multi-tenant architecture

Key Takeaways:

  • Grafana OSS is a solid starting point for most dev teams – especially in homogeneous environments with internal expertise.
  • Grafana Enterprise becomes relevant when business-level SLAs, auditability, branding, or integration requirements arise.
  • However, even the Enterprise edition lacks native AI, predictive analytics, or automated root cause detection – these require third-party tools (e.g. Prometheus, k6, ML engines) and manual setup.

4. What Grafana can’t do  – Even if you pay for it 

Grafana Enterprise delivers far more than its free counterpart – but it’s not a full observability platform. Its strength is in visualization and flexibility, but deeper capabilities like automated root cause detection and intelligent action are missing. Grafana is more of a toolkit – not an all-in-one solution.

1. No Automated Root Cause Analysis
When things go wrong, Grafana doesn’t explain why. It’s up to the user to infer patterns based on multiple dashboards and data sources. Dynatrace, in contrast, automatically detects the root cause – even in complex systems – in real time.

2. No Built-In AI
Grafana displays – it doesn’t analyze. AI features require integration with separate tools (e.g. Prometheus Alertmanager + ML). Dynatrace, by default, offers anomaly detection, prediction, and decision support powered by AI – no additional setup required.

3. Fragmented Ecosystem, High Maintenance
Grafana doesn’t collect data – it relies on external sources. These need to be installed, updated, and managed separately. If one piece fails, visibility collapses. Dynatrace provides a unified platform where everything is integrated and maintained together.

4. No Built-In Automation
Grafana tells you when there’s an issue – but doesn’t act on it. All responses are manual. Dynatrace can automate alerts, scaling, restarts, or remediations – often before the issue escalates.

Where does Datadog fit?

While this article focuses on comparing Dynatrace and Grafana Enterprise, Datadog can’t be ignored – it’s another globally popular platform. We covered Datadog in more detail in a separate article.
Here’s a high-level comparison showing how all three solutions differ in architecture, capabilities, and ROI logic:

CategoryDynatraceGrafana EnterpriseDatadog
Platform TypeUnified, integratedVisualization-centric, external stack-basedModular, function-specific components
Data CollectionNative (OneAgent)External systems (e.g. Prometheus)Partial native + integrations
Root Cause AnalysisBuilt-in, automaticNone – manual analysisLimited – correlation-based
AI & AutomationCausal + Predictive + Generative AINot built-in, requires external toolsBasic AI, mostly correlation-driven
Setup & MaintenanceMinimal – one agent, one UIComplex – many componentsModerate – module-specific configs
VisualizationSimple, AI-enhancedHighly customizableGood, but more complex
Pricing ModelTransparent (DPS-based)User-based + pluginsModular + usage-based, harder to predict
Best Fit Use CaseLarge-scale, complex systemsCustom-built observability stacksMid-sized teams with scalability needs

5. How much do they cost?

Pricing differs significantly – not just in numbers, but in what you actually get. In observability, license cost is only one part of the equation. Operational overhead, required human effort, and risk are just as important.

Dynatrace

  • Pricing Basis: host memory (e.g. 8 GiB host/month)
  • Example: ~$57–69 / host / month for full-stack monitoring
  • Characteristics: transparent, scalable DPS model with all core components included (infra, APM, logs, security)
  • Note: higher initial cost, but no need for multiple tools, support contracts, or assembling a custom stack

Grafana Enterprise

  • Pricing Basis: active user/month + premium plugins
  • Example: $8–55 / user / month + $40,000–$100,000 annual license
  • Characteristics: visualization-focused, with data collection, AI, and security via separate tools
  • Note: lower entry cost, but total operational expense (stack maintenance, human overhead, support) can scale rapidly

Datadog

  • Pricing Basis: modular – APM, logs, users, events charged separately
  • Example: $15–18 / host / month (infra), $31 / host / month (APM), $0.10 / GB logs
  • Characteristics: fast start, but unpredictable costs
  • Note: especially in log-heavy or custom metric environments, expenses can spiral

Summary

Datadog, Dynatrace, and Grafana Enterprise represent three distinct philosophies in the observability space.

  • Grafana Enterprise excels in visualization and customization. It’s a great fit for teams building their own monitoring stack. But it lacks native deep monitoring, automation, or AI – which require extra tools and effort.
  • Datadog stands out for its rich integration ecosystem and fast onboarding. Its modular structure enables scalability, but pricing is difficult to forecast and may spike in complex environments.
  • Dynatrace offers a unified approach to automated monitoring, AI-powered analysis, and root cause detection – making it an ideal choice where IT performance directly supports business value. While the entry cost may be higher, the long-term ROI and low operational overhead often make it the least risky option.

The real question isn’t which tool is best – but which one best fits your organization’s goals, resources, and operating model.
Want to choose wisely? The Telvice team is here to help – reach out for a no-obligation consultation.

Sources:
Források: https://www.taloflow.ai/guides/comparisons/dynatrace-vs-grafana-apm-observability  https://www.graphapp.ai/blog/datadog-vs-dynatrace-vs-grafana-comparing-top-monitoring-tools https://www.timestored.com/data/grafana-free-open-vs-enterprise https://www.youtube.com/watch?v=syKUeAlGSz0 https://www.gartner.com/reviews/market/observability-platforms/compare/dynatrace-vs-grafana-labs

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