Does anyone have such an experience with Datadog? A few million wasn't enough to get them to talk about anything, always paid list price and there was no negotiating either when they restructured their pricing.
Datadog's $65M/year customer mystery solved
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Re: Datadog's $65M/year customer mystery solved
#22> Assume that Datadog cuts the number of outages by half, by preventing them with early monitoring. That would mean that without Datadog, we’d look at 24 hours’ worth of downtime, not 12. Let’s also assume that using Datadog results in mitigating outages 50% faster than without - thanks to being able to connect health metrics with logs, debug faster, pinpoint the root cause and mitigate faster. In that case, without…
Another assumption that bothers me here is that the $9M in revenue would be completely lost during an outage. I imagine many customers would simply wait until the outage was resolved before performing their intended transactions, meaning far less than $9M would be lost.
Re: Datadog's $65M/year customer mystery solved
#23am i misunderstanding, or is the author saying it's better to spend $10m than $9m?
Re: Datadog's $65M/year customer mystery solved
#24I wonder how much that no-expense-spared, money-is-no-object attitude to buying SaaS impacts an engineers ability to make sensible decisions around infra and architecture. Coinbase might have been fine blowing 65 mil but take that approach to a new startup and you could trivially eat up a significant amount of runway with it. I won’t single out Datadog on this because the exact same thing happens with cloud spend, an…
Most startups are not going to have anywhere near the scale to generate anything approaching this bill.
> I won’t single out Datadog on this because the exact same thing happens with cloud spend, and it’s very literally burning money.
Unless you're in the business of deploying and maintaining production-ready datacenters at scale, it very literally isn't.
Re: Datadog's $65M/year customer mystery solved
#25Re: Datadog's $65M/year customer mystery solved
#26Re: Datadog's $65M/year customer mystery solved
#27I wonder how much that no-expense-spared, money-is-no-object attitude to buying SaaS impacts an engineers ability to make sensible decisions around infra and architecture. Coinbase might have been fine blowing 65 mil but take that approach to a new startup and you could trivially eat up a significant amount of runway with it. I won’t single out Datadog on this because the exact same thing happens with cloud spend, an…
Re: Datadog's $65M/year customer mystery solved
#28> Assume that Datadog cuts the number of outages by half, by preventing them with early monitoring. That would mean that without Datadog, we’d look at 24 hours’ worth of downtime, not 12. Let’s also assume that using Datadog results in mitigating outages 50% faster than without - thanks to being able to connect health metrics with logs, debug faster, pinpoint the root cause and mitigate faster. In that case, without…
Re: Datadog's $65M/year customer mystery solved
#29Earlier quoted context omitted.
the visible cost of burning runway on a bill is very often far less than the invisible cost of burning engineer time rebuilding undifferentiated heavy lifting rather than working on product/customer needs
People say this but I wonder about this from time to time. I don't think anyone is asking to rebuild datadog from scratch for your company but surely it's worth it to migrate to something not as expensive even if it takes a bit of elbow grease.
Re: Datadog's $65M/year customer mystery solved
#30I have found Datadog to be, by far hands down the best developer experience from the get go, the way it glues the mostly decent products together is unparalleled in comparison to other products (Grafana cloud/LGTM). I usually say if your at a small to medium scale business just makes sense, IF you understand the product and configure it correctly which is reasonably easy. The seamless integration between tracing, logging and metrics in the platform, which you can then easily combine with alerts is great. However, its easy to misconfigure it and spend a lot of money on seemingly nothing. If you do not implement tracing and structured logs (at the right volume and level) with trace/span ids etc all the way through services its hard to see the value, and seems expensive. It requires some good knowledge, and configuration of the product to make it pay off. The rest of the product features are generally good, for example their security suite is a good entry level to cloud security monitoring and SEIM too.
However, when you get to a certain scale, the cost of APM and Infrastructure hosts in Datadog can become become somewhat prohibitive. Also, Datadogs custom metrics pricing is somewhat expensive and its query language cababilities does not quite match the power of promql, and you start to find yourself needed them to debug issues. At that point, the self hosted LGTM stack starts to make sense, however, it involves a lot more education for end users in both integration (a little less now Otel is popular) and querying/building dashboards etc, but also running it yourself. The grafana cloud platform is more attractive though.