New Relic vs Datadog? Which is better for you?
In today’s fast-paced, cloud-native world, observability is more than just a buzzword—it’s a critical capability for DevOps, SRE, and engineering teams.
As modern applications become increasingly distributed and complex, teams need robust tools to monitor performance, pinpoint issues, and ensure smooth operations across the stack.
Two of the most popular platforms leading the Application Performance Monitoring (APM) and observability space are New Relic and Datadog.
Both offer comprehensive monitoring suites, including infrastructure monitoring, real-time application tracing, alerting, and dashboards—but they differ significantly in approach, pricing, integrations, and user experience.
In this detailed comparison of New Relic vs Datadog, we’ll explore:
Key features and capabilities of each platform
Differences in setup, ease of use, and scalability
Pricing models and cost considerations
Ideal use cases based on team size and goals
By the end of this post, you’ll have a clear understanding of which tool is better suited for your needs—whether you’re running Kubernetes clusters, managing microservices, or building real-time dashboards.
For more APM and observability tool comparisons, check out:
You can also explore New Relic’s official site and Datadog’s product overview to get hands-on details.
What is New Relic?
New Relic is a powerful, cloud-based observability platform designed to help teams monitor, troubleshoot, and optimize the performance of their applications and infrastructure in real time.
With a unified interface and broad telemetry support, New Relic aims to be a one-stop shop for developers, DevOps, and SREs managing complex systems.
Overview and Core Capabilities
New Relic provides full-stack visibility by collecting and analyzing metrics, events, logs, and traces (MELT) from across your entire environment.
Whether you’re monitoring a single application or hundreds of microservices, New Relic offers a centralized view of your entire system’s health.
Key Features
Application Performance Monitoring (APM): Deep visibility into application behavior, response times, and throughput with support for a wide array of programming languages.
Infrastructure Monitoring: Tracks server and container performance, integrates with Kubernetes, and provides real-time alerts.
Logs in Context: Allows teams to correlate logs with APM and infrastructure data for faster root-cause analysis.
Synthetics Monitoring: Simulates user behavior with synthetic checks to monitor uptime and availability.
Distributed Tracing: Traces requests as they travel through different services, helping pinpoint latency issues and bottlenecks.
OpenTelemetry and Integration Ecosystem
New Relic has embraced OpenTelemetry, making it easier for organizations to collect and send telemetry data without vendor lock-in.
It also integrates with over 500 third-party tools, including AWS, Azure, Google Cloud, Kubernetes, Jenkins, and more.
Deployment and Ease of Use
New Relic is fully SaaS-based, requiring no on-prem installation.
It offers a lightweight agent for instrumenting applications and infrastructure, along with automatic instrumentation for many popular frameworks.
The modern UI is designed to be user-friendly, offering customizable dashboards, guided setup, and real-time alerting.
For teams looking to consolidate observability under a single platform, New Relic’s comprehensive capabilities and cloud-native design make it a compelling choice.
What is Datadog?
Datadog is a comprehensive cloud-native monitoring and security platform designed for modern applications and infrastructure.
Built with DevOps and SRE teams in mind, Datadog provides unified observability across servers, containers, services, databases, and third-party tools—helping organizations break down silos between developers, operations, and security.
Overview and Platform Capabilities
Datadog offers a modular platform that brings together performance monitoring, log analysis, security insights, and more in a single interface.
It’s known for its highly customizable dashboards, intuitive UI, and robust real-time analytics.
Datadog supports hybrid and multi-cloud environments, making it a go-to choice for teams running complex distributed systems.
Key Features
Application Performance Monitoring (APM): End-to-end visibility into distributed traces, request bottlenecks, and service dependencies.
Infrastructure Monitoring: Real-time metrics for hosts, containers (like Docker and Kubernetes), cloud services, and on-prem systems.
Log Management: Ingest, index, and search logs with customizable retention, live tailing, and log-based metrics.
Real User Monitoring (RUM): Tracks user sessions and front-end performance, helping teams improve digital experience.
Security Monitoring: Detects threats in real time across infrastructure and applications using out-of-the-box and custom rules.
Integrations and Dashboards
Datadog offers over 600+ native integrations with cloud providers (AWS, Azure, GCP), orchestration tools (Kubernetes, Terraform), CI/CD systems, and more.
This makes it exceptionally easy to plug Datadog into existing tech stacks.
Its drag-and-drop dashboard editor lets teams build tailored observability views with ease.
Cloud-Native Strengths
Datadog’s SaaS-first architecture is designed for scalability and speed.
With agent-based and agentless data collection, it’s optimized for real-time performance and minimal overhead, even in large, dynamic environments.
Built-in anomaly detection, forecasting, and alerting empower teams to be proactive in identifying issues before they impact end users.
New Relic vs Datadog: Feature-by-Feature Comparison
When evaluating New Relic vs Datadog, it’s important to break down their capabilities across key areas of observability.
Below is a detailed comparison of their core features to help you determine which tool aligns best with your needs.
1. Application Performance Monitoring (APM)
New Relic: Offers deep code-level performance insights, automatic instrumentation, service maps, and distributed tracing. Strong support for OpenTelemetry and modern languages like Java, Node.js, Go, Python, and Ruby.
Datadog: Equally strong in APM, with distributed tracing, flame graphs, and anomaly detection. Datadog also supports OpenTelemetry and provides tight integrations with CI/CD pipelines.
✅ Verdict: Both offer powerful APM, but New Relic excels in code-level visibility while Datadog offers stronger native correlation between logs, traces, and metrics.
2. Infrastructure Monitoring
New Relic: Provides metrics, events, logs, and traces (MELT) through a unified platform. Infrastructure monitoring is agent-based with robust dashboards.
Datadog: Known for real-time infrastructure metrics with excellent visualization and tagging. Also offers an agentless mode for some environments.
✅ Verdict: Datadog leads in real-time visualization and scalability for dynamic environments like Kubernetes.
3. Log Management
New Relic: Includes log ingestion, parsing, and correlation with APM data. Offers a query language (NRQL) for searching and alerting.
Datadog: Advanced log management with customizable pipelines, live tailing, and log-based metrics. Supports automated retention filters and cold storage.
✅ Verdict: Datadog provides a more mature logging experience, especially for large-scale environments.
4. Dashboards and Visualization
New Relic: Offers customizable dashboards using NRQL. Visualizations are solid, but the learning curve can be steeper due to NRQL syntax.
Datadog: Extremely user-friendly dashboards with drag-and-drop widgets, template variables, and real-time collaboration.
✅ Verdict: Datadog wins for ease of use and flexibility in dashboarding.
5. Alerting and Anomaly Detection
New Relic: Offers dynamic baseline alerting and anomaly detection using AI and NRQL. Integrates with popular incident response tools.
Datadog: Strong ML-based alerts, composite monitors, and SLO tracking. Offers out-of-the-box integrations with PagerDuty, Slack, and more.
✅ Verdict: Datadog has the edge in flexibility and intelligent alerting.
6. Security and Compliance Monitoring
New Relic: Has added security capabilities with New Relic Vulnerability Management and Telemetry Data Platform.
Datadog: Offers a full-fledged security monitoring module, including CSPM (Cloud Security Posture Management) and threat detection.
✅ Verdict: Datadog is more robust for security observability out of the box.
7. Integrations and Ecosystem
New Relic: Integrates with cloud providers, on-prem services, and third-party tools, but has fewer native integrations compared to Datadog.
Datadog: Boasts over 600+ prebuilt integrations with a rapidly expanding ecosystem.
✅ Verdict: Datadog leads in ecosystem extensibility and plug-and-play integrations.
New Relic vs Datadog: Ease of Setup and Use
When choosing between New Relic and Datadog, ease of onboarding and day-to-day usability play a significant role—especially for fast-paced teams with limited time for configuration.
Onboarding Experience
New Relic: Offers a streamlined onboarding process with guided install scripts and automatic instrumentation for many languages. However, setup can be more involved if you want to fully leverage NRQL and custom configurations.
Datadog: Known for its quick setup and intuitive agent deployment. The UI provides clear steps for integrating with cloud services (AWS, Azure, GCP), containers, and third-party tools.
✅ Verdict: Datadog is generally faster to onboard, particularly for teams new to observability platforms.
UI/UX Comparisons
New Relic: The interface is powerful but may feel overwhelming to new users due to its reliance on NRQL (New Relic Query Language). Dashboards and alerts are highly customizable but can take time to master.
Datadog: The user interface is clean, modular, and highly interactive. Navigating between metrics, logs, and traces feels seamless and intuitive.
✅ Verdict: Datadog offers a smoother UX for both beginners and experienced users.
Learning Curve for Teams
New Relic: Ideal for teams comfortable with SQL-like query languages and willing to invest time in customization. More technical teams may appreciate the depth of control.
Datadog: Designed to work well out of the box. Teams with limited observability experience can still gain value quickly, thanks to built-in dashboards and templates.
✅ Verdict: Datadog has a gentler learning curve, while New Relic rewards those who invest in mastering its advanced capabilities.
New Relic vs Datadog: Performance and Scalability
When it comes to observability tools, performance isn’t just about speed—it’s also about how well the platform handles growing workloads and infrastructure complexity.
Data Ingestion Speed and Query Responsiveness
New Relic: Boasts impressive real-time data streaming, with sub-minute granularity across metrics, logs, and traces. NRDB (New Relic Database) is optimized for high-volume data ingestion and rapid NRQL-based querying. Users typically experience fast response times, even under heavy loads.
Datadog: Equally strong in this area, Datadog provides near real-time ingestion for logs, metrics, and traces. Its query engine and time-series database are built to support fast searches across massive datasets, particularly when using pre-built dashboards or indexed logs.
✅ Verdict: Both tools excel in real-time performance, though New Relic’s NRDB may have a slight edge in advanced querying.
How Each Tool Scales with Infrastructure
New Relic: Scales well in cloud-native environments and supports auto-scaling for dynamic infrastructure. It’s ideal for distributed microservices, with built-in support for OpenTelemetry and Kubernetes environments. However, some users report cost and data retention trade-offs as scale increases.
Datadog: Purpose-built for modern, large-scale environments. Its architecture effortlessly handles thousands of hosts, containers, and integrations. Datadog’s pricing model is usage-based, which can scale quickly with growing data, but its modular approach allows teams to control costs by enabling only necessary features.
✅ Verdict: Datadog offers broader scalability for enterprise-scale deployments, especially with multi-cloud and hybrid environments.
Both New Relic and Datadog are top-tier in terms of performance and scalability. Your decision may come down to how your team prioritizes customization, ease of scale, and pricing predictability.
New Relic vs Datadog: Pricing Breakdown
Choosing between New Relic and Datadog often comes down to cost—especially when teams begin to scale.
Here’s how each platform structures its pricing and what you get at different tiers.
Free Tiers and What’s Included
New Relic: Offers a very generous free tier that includes 100 GB/month of data ingest, full platform access (including APM, infrastructure monitoring, logs, and more), and unlimited users. It’s one of the most accessible entry points for small teams or projects just getting started with observability.
Datadog: Also provides a free plan, but it’s more limited. It supports up to 5 hosts with 1-day metric retention and access to core infrastructure monitoring features. Logs and APM are only available in paid plans, making the free offering more of a trial.
✅ Verdict: New Relic’s free tier is more comprehensive, making it a better choice for startups or those evaluating full-stack observability without a budget commitment.
Differences in Billing Models
New Relic: Pricing is based on data ingestion (per GB) and user type (basic vs. full). This can be advantageous for organizations that generate low-to-moderate data but want access to the full platform. However, costs can spike with high ingestion workloads.
Datadog: Charges by host for infrastructure monitoring, with add-on pricing for APM, logs, RUM, etc. It’s modular, meaning you pay for exactly what you use—but pricing can quickly become complex and costly as you adopt more features and scale your infrastructure.
✅ Verdict: Datadog offers flexible, feature-specific pricing, while New Relic simplifies access with a usage-based model focused on data and users.
Cost Predictability and Enterprise Value
New Relic: Transparent pricing helps teams estimate cost based on ingestion and user count. However, usage spikes (e.g., during incidents or scaling events) can lead to unpredictable bills unless capped or managed closely.
Datadog: While modular, Datadog’s pricing model can be harder to estimate due to the variety of features and host-based billing. However, it provides volume discounts and enterprise plans that offer more predictability at scale.
✅ Verdict: Datadog offers better control at scale, but New Relic offers simplicity for teams focused on observability breadth over depth.
If you’re looking for a deeper dive into cost control strategies, check out our related post on Optimizing Kubernetes Resource Limits to align usage with billing efficiency.
New Relic vs Datadog: Use Case Scenarios
While both New Relic and Datadog offer robust observability platforms, their strengths cater to different team needs and architectural preferences.
Here’s a breakdown of when each tool shines:
New Relic is Best For:
Developers Seeking Seamless Telemetry Integration
With first-class support for OpenTelemetry, New Relic makes it easy for developers to instrument their applications using vendor-neutral APIs and SDKs. This is especially useful for teams adopting modern observability standards.Teams Embracing Full-Stack Observability
New Relic’s all-in-one platform (APM, logs, synthetics, infrastructure, browser monitoring, and more) helps unify performance data across the stack. This is ideal for smaller teams that want maximum insight with minimal complexity.Organizations Prioritizing Cost-Effective Scaling
Thanks to New Relic’s usage-based pricing and generous free tier, startups and cost-sensitive teams can ramp up observability without a hefty initial investment.
📌 Related: Learn more about New Relic vs Grafana if you’re comparing visualization capabilities specifically.
Datadog is Best For:
Security-Conscious Teams
Datadog includes built-in security monitoring and SIEM capabilities, making it well-suited for DevSecOps environments. It helps detect threats across infrastructure, applications, and cloud services.Enterprises with Deep Cloud-Native Infrastructure
Datadog’s tight integrations with AWS, Azure, GCP, and Kubernetes (along with over 600 out-of-the-box integrations) make it the preferred choice for large organizations operating in dynamic, distributed environments.Teams Needing Advanced Dashboards and Custom Metrics
Datadog’s flexible dashboards, real-time metrics, and analytics tools give power users deep control over data visibility and alerting logic.
📌 Related: Explore how Datadog compares to Kibana for teams focused on logging and visualization.
Both tools are excellent in their own right, but your best choice will depend on your use case, team size, cloud footprint, and preferred tooling ecosystem.
New Relic vs Datadog: Pros and Cons
Both New Relic and Datadog offer compelling observability solutions, but they cater to different strengths and priorities.
Below is a quick breakdown of the main advantages and drawbacks of each platform.
New Relic
✅ Strong APM + OpenTelemetry Support
New Relic provides deep application performance monitoring capabilities and first-class support for OpenTelemetry, making it a great choice for teams that want vendor-neutral instrumentation.
✅ Competitive Pricing for Smaller Teams
With its generous free tier and usage-based pricing model, New Relic is particularly accessible for startups and smaller teams that need full observability without enterprise pricing.
❌ Less Advanced Security Features
Unlike Datadog, New Relic doesn’t offer a native security monitoring suite. Teams with strict compliance or security requirements may need to supplement it with external tools.
Datadog
✅ Mature Ecosystem and Security Features
Datadog offers a rich ecosystem of over 600 integrations and includes built-in security monitoring, making it ideal for DevSecOps workflows.
✅ Strong Multi-Cloud Support
Datadog excels in cloud-native environments with advanced Kubernetes monitoring, AWS/GCP/Azure integrations, and real-time analytics—perfect for organizations with dynamic cloud infrastructures.
❌ Can Get Expensive at Scale
Datadog’s pricing is based on data ingestion, hosts, and feature usage. For teams with large, complex environments, this can result in high monthly costs without careful usage monitoring.
📌 Related: For pricing breakdowns, check our deep dive into Datadog vs Kibana and New Relic vs Grafana.
Final Verdict: Which Should You Choose?
Choosing between New Relic and Datadog ultimately depends on your team’s specific needs, goals, and existing tech stack.
While both tools are powerful observability platforms, they shine in different areas.
Summary of Comparison
New Relic offers comprehensive APM and strong support for OpenTelemetry, with competitive pricing that appeals to smaller teams and developers focused on code-level visibility.
Datadog brings together robust infrastructure monitoring, security analytics, and seamless cloud-native integrations, making it a go-to for enterprise and security-conscious teams.
Decision Criteria
| Criteria | Better Option |
|---|---|
| APM & Dev Focus | New Relic |
| Security Monitoring | Datadog |
| OpenTelemetry Adoption | New Relic |
| Cloud-Native Ecosystem | Datadog |
| Budget-Conscious Teams | New Relic |
| All-in-One Observability | Datadog |
Recommendation Guide
Go with New Relic if you’re a smaller team, heavily invested in OpenTelemetry, or want a full-stack observability platform without breaking the bank.
Choose Datadog if you’re managing complex cloud-native infrastructure, need built-in security monitoring, or prefer a mature platform with a wide range of integrations.
💡 Tip: Many organizations benefit from testing both platforms during a trial period to evaluate fit. Both offer free tiers with generous capabilities to get started.
📚 Related Reading:
Conclusion
Both New Relic and Datadog are powerful observability platforms, each with its own strengths.
New Relic stands out for its developer-friendly interface, strong support for OpenTelemetry, and competitive pricing — making it ideal for startups and engineering-focused teams.
Datadog, on the other hand, offers a mature ecosystem with deep integrations, advanced security features, and broad multi-cloud support, which is perfect for large-scale enterprise environments.
The best way to determine which tool fits your needs is to try both.
Fortunately, New Relic offers a free tier with full-stack observability, and Datadog provides a 14-day free trial that lets you explore its full feature set.
In the evolving world of DevOps and cloud-native architecture, choosing the right observability tool can make all the difference.
Take advantage of the free tiers and trials to make an informed decision based on your team’s needs and infrastructure.
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