Introduction to Datadog and New Relic
Datadog and New Relic are widely adopted tools for monitoring, observability, and performance management. Each platform offers a suite of features — like Application Performance Monitoring (APM), Infrastructure Monitoring, and Log Management — to support software reliability and operational efficiency. Choosing between Datadog and New Relic can shape how your team troubleshoots, scales, and handles compliance. This comparison spotlights where each product excels for today’s cloud-native and enterprise teams.
Key Takeaways
- Datadog delivers deep, customizable dashboards and real-time analytics but can become expensive as you add modules.
- New Relic emphasizes easy setup, unified telemetry across logs and traces, and budget-friendly usage-based pricing.
- Both platforms meet enterprise security benchmarks, including SOC2 and GDPR compliance.
- Data retention and ingestion limits may be critical if your use case involves high-volume or long-term storage.
Datadog vs New Relic: Summary Comparison Table
| Feature | How Datadog handles it | How New Relic handles it | Best for |
|---|---|---|---|
| APM | Real-time APM with customizable dashboards (eWeek, G2) | Unified, full-stack APM with simple setup (Datamation, TrustRadius) | Both: in-depth application monitoring |
| Infrastructure Monitoring | Real-time monitoring, detailed analytics | Full-stack infrastructure monitoring, unified data views | Both: cloud and hybrid environments |
| Log Management | Real-time log analytics, flexible retention (user reports, G2) | Log ingestion unified with all telemetry; retention based on tier | Both: centralized log workflow |
| Real User Monitoring (RUM) | Available | Available | Both: user experience analysis |
| Synthetic Monitoring | Available | Available | Both: proactive uptime testing |
| Dashboards | Highly customizable dashboards (eWeek, G2) | Standard dashboards; focus on integrated telemetry | Datadog: dashboard customization |
| Integrations | Not publicly specified | Not publicly specified | Not publicly specified |
| Alerting & Incident Management | Alerts with advanced analytics (user reports) | Integrated alerting, unified incident workflow | Both: automated detection and response |
| Pricing | Modular, per-feature (eWeek); can add up with scale | Usage-based with free tier (Datamation); often lower entry cost | New Relic: smaller teams, cost-conscious |
| Data/Volume Limits | User-reported: volume/retention policy limits (TrustRadius) | Tiered retention; free: 100GB/month ingest (TrustRadius) | Datadog: variable; New Relic: clear free tier cap |
| Security & Compliance | SSO, RBAC, SOC2, GDPR (eWeek) | SOC2, GDPR, strong data protection (eWeek) | Both: regulated and enterprise sectors |
Key Features Overview
Both Datadog and New Relic provide Application Performance Monitoring, Infrastructure Monitoring, and central Log Management for cloud and hybrid environments. Real User Monitoring (RUM) and Synthetic Monitoring are available in both tools for user experience and uptime checks. Datadog is known for customizable dashboards and granular analytics, while New Relic focuses on its unified telemetry platform — bringing metrics, logs, traces, and events together in a central database. This integration supports full-stack observability, making it easier to troubleshoot across services without switching context.
Dashboards and Analytics Capabilities
Datadog stands out with its highly customizable dashboards. Teams can tailor views for different services, add real-time analytics widgets, and build visualizations that match their troubleshooting workflows. These advanced dashboards help large teams quickly pinpoint issues and correlate data across applications, infrastructure, and logs.
New Relic provides standard dashboards that benefit from its unified telemetry. The main value lies in the ability to see logs, metrics, and traces side by side, lowering the barrier for teams to get started with observability. For many, this helps accelerate troubleshooting — especially for environments that value simplicity over deep customization.
Integration and Extensibility
Information on the supported integrations for both Datadog and New Relic is not publicly specified. Generally, top monitoring platforms offer hundreds of integrations for cloud, third-party tools, and messaging systems. If ecosystem breadth is critical, check each vendor’s marketplace before you choose.
Pricing Models Compared
Datadog operates on a modular, per-feature pricing model (eWeek). You pay for each core module — such as APM, Infrastructure Monitoring, or Log Management — individually. This model supports tailored deployments but can result in higher costs as your usage scales or as you adopt more modules across teams and environments.
New Relic uses a usage-based pricing approach and includes a free tier (up to 100GB data ingest per month, per TrustRadius). This consolidated model is often more budget-friendly for small teams or those with predictable workloads. However, as usage grows, costs can increase, and it’s important to consider retention policies tied to each pricing tier.
Data Retention and Volume Limits
User reviews on TrustRadius note that Datadog enforces some volume-based limits for certain data types and retention policies, though specific details are not publicly disclosed. New Relic’s data retention is strictly tiered: free-tier users get 100GB of data ingest per month. Higher paid tiers offer more, although precise caps depend on your subscription. Organizations generating large amounts of telemetry should assess data volume projections against each vendor’s policies to avoid costly surprises.
Security and Compliance
Datadog includes enterprise-grade security features. These include single sign-on (SSO), role-based access control (RBAC), and third-party compliance such as SOC2 and GDPR, per eWeek. New Relic also meets SOC2 and GDPR requirements and applies data protection best practices (eWeek). Both platforms are suitable for teams in regulated industries or those with strict compliance needs.
Strengths and Potential Drawbacks
Datadog Strengths
- Comprehensive real-time monitoring and analytics across apps, infrastructure, and logs
- Highly flexible and configurable dashboards (eWeek, G2)
- Extensive customization for monitoring workflows
Datadog Drawbacks
- Potentially steep costs as you add more modules or scale up (eWeek)
- User-reported data retention and volume restrictions may be limiting (TrustRadius)
New Relic Strengths
- Simplified setup and deployment (TrustRadius, Datamation)
- Unified telemetry database combines logs, metrics, and traces (Datamation)
- Clear usage-based pricing, plus a free tier for new or small teams
New Relic Drawbacks
- Less granular dashboard customization compared to Datadog
- Data ingest and retention are strictly capped on lower pricing tiers (TrustRadius)
Choosing the Right Platform
Go with Datadog if deep customization, real-time dashboards, and granular analytics are central to your operations, and if you’re willing to pay more for tailored monitoring. This is particularly beneficial for enterprises that need advanced troubleshooting and visibility into rapidly changing infrastructure.
Opt for New Relic if you value ease of use, unified full-stack observability, and predictable pricing. Its free tier is attractive for startups and smaller teams. Larger organizations that need unified data views may also benefit, but should monitor data usage and retention carefully.
Consider your specific technical requirements, compliance needs, projected data volumes, and budget when deciding between the two platforms.
Conclusion
Both Datadog and New Relic deliver robust monitoring and observability. Datadog excels with advanced customization and analytics, while New Relic’s strengths are unified telemetry and approachable pricing. Map your team’s needs and budget to each offering, scrutinize data retention/ingest policies, and trial both platforms if possible for a side-by-side fit assessment.
FAQs
Which is better for infrastructure monitoring, Datadog or New Relic?
Both provide strong infrastructure monitoring. Datadog offers more customization in dashboards and analytics, while New Relic centralizes all telemetry for simpler troubleshooting. The best fit depends on your workflow and desire for customization.
How do Datadog and New Relic pricing models compare?
Datadog uses modular, per-feature pricing that can be expensive as you grow. New Relic is usage-based and offers a free tier, making it budget-friendly for small teams but with clear data caps.
What compliance certifications do Datadog and New Relic offer?
Both are SOC2 and GDPR compliant, suitable for most enterprise and regulated environments.
Does Datadog offer better integrations than New Relic?
Not publicly specified. Both are expected to support a broad range, but specifics should be confirmed directly with each vendor.
What are the key differences between Datadog and New Relic?
Datadog prioritizes customizable dashboards and analytics. New Relic focuses on unified telemetry and ease of setup. Pricing and data retention models also differ.
Is New Relic suitable for large-scale enterprise environments?
Yes, especially for organizations valuing unified observability. Data retention and ingest limits should be evaluated for enterprise-scale deployments.
Can I migrate from Datadog to New Relic easily?
Not publicly specified. Migration generally depends on your specific monitoring setup and integrations.
How do Datadog and New Relic approach log management?
Datadog provides real-time log analytics with modular pricing. New Relic unifies logs with all telemetry, and retention depends on your tier.