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A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

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Re: A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

#191

I worked at Coinbase until very recently and can confirm this is Coinbase They paid upfront for 3 years of usage, and yes they were burning > $20m/year on datadog

> 3 years

Okay, it seemed like it was 1 year.

So, only insane, not insane^2.

Re: A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

#192

Stupid question: What open source solution can give me an easy Datadog(ish) experience and is simple to implement?

That's a bit like asking for an "open source alternative to AWS."

It depends what you're looking for: metrics, logs, APM, tracing, synthetics, web analytics, etc.

Re: A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

#193

OpenTelemetry is going to be an existential threat to DataDog and other companies that effectively rely on vendor lock-in to exploit customers. Not sure how companies rationalize these types of services at scale when there are so many open source options to run for a fraction of the cost. You could hire 100+ engineers and still save money compared to a 65M bill https://news.ycombinator.com/item?id=34540419

We are building SigNoz (https://github.com/SigNoz/signoz) - an open source alternative to DataDog. We are natively based on opentelemetry and see lots of our users very interested in that.

As mentioned in some other places in the thread, DataDog pricing is very unpredictable and high - and I think more open standards based solutions are the way forward which provides users more predictability and flexibility

Re: A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

#194

Stupid question: What open source solution can give me an easy Datadog(ish) experience and is simple to implement?

That's a bit like asking for an "open source alternative to AWS." It depends what you're looking for: metrics, logs, APM, tracing, synthetics, web analytics, etc.

metrics, APM mostly

Re: A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

#195
post #94

Earlier quoted context omitted.

Their sales team is a nightmare, I had to block them on personal and company email.

Just wait until they find your personal cell phone number and try to force you into scheduling a "time that works" on the calendar.

I reported them to the FTC. No idea if it did anything but they never called back.

Re: A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

#196
This doesn't surprise me much. From what I've seen consulting/contracting, SaaS-based observability tends to cost 30-50% of cloud spend--EC2, storage, S3, RDS, maybe k8s, and other cloud services, or whatever the equivalent is on GCP/Azure. I wouldn't be surprised to see Coinbase with a >$150M quarterly cloud spend, so $65M on observability would make sense.

That said, managing observability yourself should result in <5% of cloud spend. So I'm figuring someone at Coinbase said "WTF" to this bill and migrated to Grafana/Loki or Kibana/OpenSearch or Kibana/Elastic. Well, that, and Coinbase's business also dropped off a cliff. Combined, I could easily see a one-time influx of $65M from one customer, gone the next quarter.

Re: A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

#197
post #93

Earlier quoted context omitted.

Datadog startup journey from my perspective: 1. use Datadog, because it gets you a bunch of stuff without having to really set it up, like anomaly detection, which is poor man's monitoring & alerting 2. once you start getting product-market fit and the number of instances you run grows you notice your monthly bill going crazier and crazier and you now have something that starts to resemble an ops team -> migrate to a…

We're going through this now. What other products are out there, preferably easy for a moron to set up?

Check out Grafana.

Re: A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

#199
post #93

Earlier quoted context omitted.

Datadog startup journey from my perspective: 1. use Datadog, because it gets you a bunch of stuff without having to really set it up, like anomaly detection, which is poor man's monitoring & alerting 2. once you start getting product-market fit and the number of instances you run grows you notice your monthly bill going crazier and crazier and you now have something that starts to resemble an ops team -> migrate to a…

We're going through this now. What other products are out there, preferably easy for a moron to set up?

You should check out SigNoz (https://github.com/SigNoz/signoz) - It's an open source alternative to DataDog with metrics, traces and logs in a single application. You can just self host it yourself or try the hosted version.

PS: I am one of the maintainers at SigNoz

Re: A cryptocurrency company had a $65M bill, per Datadog’s Q1 earnings call

#200

Datadog prices are out of this world. I assumed their front facing prices were for the lone dev, so when I reached out as a company looking to integrate multiple of their products I expected a deal, and got very little compromise. I told them up front they were going to have to cut prices by 90% for us to consider them -- no budge. And they are pretty belligerent salesman, not wanting to leave me alone. After a while…

Datadog costs more to monitor your AWS t3.medium instance than the actual instance. I asked them how them can justify that. They recommended I use "modern infrastructure" which means Docker.

(Disclaimer: I work at Chronosphere, a Datadog competitor) This is a big issue in the observability space. We have written a few blog posts on this, but basically it’s easy to fall into a trap where cardinality and high dimensional monitoring causes your metrics to pop, causing costs to skyrocket. You have a few experiments, are running a bunch of smaller k8s pods per cluster and whoosh! you might be looking at millions, rather than thousands of time series that you're sending to your provider. Most vendors won’t provide tooling or suggest ways to reduce these costs, b/c they have no economic incentive to do so…. Anyway, bottom line is that no one should have to pay more to observe a service than to operate it.

Also: it’s 2023. Every company needs to be getting compatible with open standards like OpenTelemetry, Prometheus, etc.

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