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Datadog OTel Collector Configuration

# otel-collector-config.yaml — export to Datadog via OTel Collector
# Uses the Datadog exporter (community-maintained)

exporters:
  datadog:
    api:
      key: "${DD_API_KEY}"
      site: datadoghq.com     # or datadoghq.eu for EU region

    # Map OTel resource attributes to Datadog tags:
    host_metadata:
      enabled: true
      hostname_source: config_or_system

    # Log format for Datadog:
    logs:
      use_compression: true
      compression_level: 6

    # Trace format for Datadog APM:
    traces:
      span_name_as_resource_name: true
      peer_tags_aggregation: false

service:
  pipelines:
    logs:
      receivers: [otlp]
      processors: [batch, redaction]
      exporters: [datadog]
    traces:
      receivers: [otlp]
      processors: [batch, tail_sampling]
      exporters: [datadog]
    metrics:
      receivers: [otlp, prometheus]
      processors: [batch]
      exporters: [datadog]

Datadog Pros and Cons for BizFirstGO

AspectProCon
Setup speedFastest to get running (10 minutes)-
FeaturesRich APM, ML-based anomaly detection, RUM, SLO trackingOverkill for most BizFirstGO deployments
Cost-Most expensive per-host/per-user pricing; costs can escalate quickly
Portability-Proprietary dashboard format — cannot export to Grafana JSON
Query languageIntuitive UI-driven queriesNot LogQL/PromQL — all dashboards must be rebuilt if leaving Datadog
OTel supportNative OTLP ingestion supportedSome OTel attributes require mapping to Datadog-specific fields

Datadog Cost Warning

# Datadog pricing model (as of 2025):
# - Infrastructure: $15-23/host/month
# - APM: $31/host/month
# - Log Management: $0.10-0.25/GB ingested + $1.70/million log events
# - Estimated cost for BizFirstGO (10 hosts, 5 GB/day logs):
#   Infrastructure: 10 × $23 = $230/month
#   APM: 10 × $31 = $310/month
#   Logs: (5 × 30 × $0.10) + (5 × 30 × 1M events × $1.70) = $755/month (estimate)
#   Total: ~$1,295/month for 10 hosts

# Compare to self-hosted BizFirst Observe:
# AWS EC2 (2× m6i.xlarge): $200/month
# S3 storage: $15/month
# Total: ~$215/month (same 10-tenant workload)

# Datadog is 6× more expensive than self-hosted for this workload.
# Justify with specific Datadog features (ML anomaly detection, SLO tracking)
# before committing to Datadog for BizFirstGO.