Company
Date Published
Author
Alicia Basteri, Principal Content Manager, Ishan Mukherjee, Former Senior Vice President of Growth
Word count
1655
Language
English
Hacker News points
None

Summary

The article compares the costs of using New Relic, a usage-based platform, with traditional subscription-based approaches used by Datadog and Dynatrace for full-stack observability. The analysis shows that depending on the size of the engineering team and the shape of the tech stack, New Relic can provide up to 5X more value for money than tools from vendors like Datadog. The cost savings in these scenarios allow for the addition of even more users and data in New Relic, which provides more value while still spending less than with Datadog and Dynatrace. The analysis is based on publicly available list prices and includes a comparison of costs for three hypothetical tech stacks: small team with 25 engineers, midsize team with 65 engineers, and large team with 150 engineers. According to an investor report, New Relic's usage-based pricing model enables customers to instrument more data and achieve better results without allocating more budget, providing more value for the same cost compared to subscription-based observability options.