Datadog vs New Relic

Datadog and New Relic both position themselves as observability platforms, but the documented facts point to different buying jobs. Datadog is built around…

Best for Datadog: Datadog is the better fit for teams that want to enable only specific observability modules, such as infrastructure or APM, and are comfortable managing several separately billed products plus a dedicated AI Credits allotment.
Best for New Relic: New Relic is the better fit for teams that want to start free with broad access to all 50+ platform capabilities and 100GB of monthly ingest, or for regulated organizations that need FedRAMP or HIPAA eligibility on an Enterprise plan.

At a Glance

 DatadogNew Relic
Primary categoryDevOpsDevOps
RatingNot documentedNot documented
Pricing modelFreemium / Usage-based modular pricingFreemium
Starting priceFreeFree
Free planYesYes
Free trialYesNot documented
PlatformsWeb, iOS, AndroidNot documented
Team collaborationNot documentedNot documented
AI featuresYesNot documented
Public APIYesNot documented

Key Differences

Pricing model

Datadog: Datadog is documented as a Paid pricing model with infrastructure, APM, logs, and security priced and billed separately

New Relic: New Relic is documented as Freemium, with a Free plan offering 100GB of monthly data ingest and all core capabilities

It changes how a team evaluates and enters the product, one requires committing to paid modules from the start while the other allows a genuinely usable free trial period

Cost predictability

Datadog: Datadog's documented con is that highly modular, multi-unit pricing makes total cost significantly harder to estimate than a flat per-seat tier

New Relic: New Relic's paid tiers use per-user pricing, Standard at $99 per additional user per month and Pro at $349 per user per month

Finance and procurement teams need to forecast spend, and a single per-seat number is easier to budget against than several separately metered products

Free tier scope

Datadog: Datadog's documented free plan is Infrastructure Free at $0, scoped to infrastructure monitoring

New Relic: New Relic's Free plan at $0 per month includes 100GB of data ingest and access to all 50+ platform capabilities

A free tier that unlocks the full capability set lets a team properly evaluate the product before paying, while a free tier scoped to one product only previews part of the platform

Entry-level paid pricing structure

Datadog: Datadog's documented Infrastructure Pro tier is $15 per host per month billed annually, and Infrastructure Enterprise is $23 per host per month billed annually

New Relic: New Relic's documented paid tiers are priced per user rather than per host, starting at $99 per additional user per month for Standard

Per-host and per-user billing scale differently depending on whether a team's growth is driven by more infrastructure or more people accessing the platform

AI feature billing

Datadog: Datadog documents AI Credits, a separate credit-based pricing unit specifically for AI-powered features

New Relic: New Relic's provided facts do not document a dedicated AI credit system or AI-specific pricing unit

A distinct AI billing unit signals AI features are metered and monetized separately, which affects how a team forecasts spend if it plans to use AI capabilities heavily

Compliance eligibility

Datadog: Datadog's provided facts do not document specific compliance certifications

New Relic: New Relic documents FedRAMP and HIPAA eligibility, available on its Enterprise plan

Regulated industries such as healthcare and government contracting often cannot adopt a platform without documented compliance eligibility

Platform breadth as stated

Datadog: Datadog's documented feature set emphasizes unified observability, combining infrastructure, application, and log monitoring in one platform

New Relic: New Relic documents 50+ monitoring capabilities across application, infrastructure, and digital experience monitoring unified in one platform

A stated capability count versus a description of unified categories gives buyers different signals about platform scope, though neither confirms exhaustive feature parity

Top-tier pricing transparency

Datadog: Datadog's highest documented plan, Infrastructure Enterprise, has a published price of $23 per host per month billed annually

New Relic: New Relic's highest tier, Enterprise, is listed as Custom pricing with no published number

Published top-tier pricing lets a buyer estimate cost before a sales conversation, while custom pricing requires direct negotiation

Feature-by-Feature

Pricing and Billing

FeatureDatadogNew Relic
Free planAvailableAvailable
Per-seat/per-user pricingNot documentedAvailable
Per-host infrastructure pricingAvailableNot documented
Custom-quoted Enterprise tierNot documentedAvailable

Platform Coverage

FeatureDatadogNew Relic
Infrastructure monitoringAvailableAvailable
Application performance monitoringAvailableAvailable
Log managementAvailableNot documented
Digital experience monitoringNot documentedAvailable

AI Capabilities

FeatureDatadogNew Relic
AI-powered featuresAvailableNot documented
Dedicated AI pricing unitAvailableNot documented

Compliance and Regulatory

FeatureDatadogNew Relic
FedRAMP eligibilityNot documentedAvailable
HIPAA eligibilityNot documentedAvailable

Pricing Model Type

FeatureDatadogNew Relic
Freemium pricing modelUnavailableAvailable
Modular, unbundled product billingAvailableNot documented

Free Tier Depth

FeatureDatadogNew Relic
Documented free data ingest allowanceNot documentedAvailable
Full capability access on free planNot documentedAvailable

Cost Estimation and Predictability

FeatureDatadogNew Relic
Predictability of total monthly costLimitedAvailable
Single flat pricing tierUnavailableNot documented

Pricing Compared

Starting price reflects the lowest paid tier, not the full cost for every team size or usage level.

Datadog

Free — Free N/A
Pro — $15/host/month Monthly (billed annually)
Enterprise — $23/host/month Monthly (billed annually)

New Relic

Free — $0/month Monthly
Standard — From $10 (first full user) Monthly
Pro — $349/user/year (or ~$418.80/month) Annual or monthly
Enterprise — Custom Annual contract

Pros & Cons

Datadog

Pros

  • Broad, unified platform reduces context-switching between metrics, logs, traces, and security tools
  • Extensive library of 850+ pre-built integrations speeds up onboarding
  • Free tier and modular pricing let teams start small and add products as needed
  • Mobile apps for iOS and Android support on-call incident response

Cons

  • Modular, usage-based pricing across many products can make total cost unpredictable at scale
  • Costs can escalate quickly for large host counts, high log volumes, or many APM traces
  • Requires ongoing monitoring of usage to avoid unexpected billing increases
  • Advanced features like anomaly detection are gated behind the higher Enterprise pricing tier

New Relic

Pros

  • Broad all-in-one observability platform covering APM, infrastructure, logs, and browser and mobile monitoring in one place
  • Generous perpetual free tier of 100 GB ingest per month for small projects
  • Mature product with 50-plus capabilities and wide language and framework support
  • Long track record and enterprise adoption dating back to 2008
  • Consumption-based pricing can scale down for smaller workloads

Cons

  • Data ingest-based pricing can become expensive and unpredictable at high volumes
  • Now a private company following the 2023 Francisco Partners and TPG acquisition, reducing public financial transparency
  • Full platform user pricing is significantly more expensive than core or basic users on the Pro tier
  • Feature sprawl across 50-plus capabilities can create a learning curve for new teams
  • Competition from more focused or cheaper observability tools on specific use cases

Use Cases

Choose Datadog: Datadog is the better fit for teams that want to enable only specific observability modules, such as infrastructure or APM, and are comfortable managing several separately billed products plus a dedicated AI Credits allotment.
Choose New Relic: New Relic is the better fit for teams that want to start free with broad access to all 50+ platform capabilities and 100GB of monthly ingest, or for regulated organizations that need FedRAMP or HIPAA eligibility on an Enterprise plan.
Need both: Organizations that already have cost commitments to one platform's modules but need a compliance-eligible or freemium entry point for a new team or project might reasonably pilot both rather than migrating outright.

Datadog

  • Cloud Infrastructure and Application Monitoring — Tracking the health and performance of servers, containers, and microservices across multi-cloud environments.
  • Incident Response and Root-Cause Analysis — Correlating metrics, logs, and traces in one interface to speed up debugging during production incidents.
  • Cloud Security and Compliance Monitoring — Detecting misconfigurations, vulnerabilities, and suspicious activity across cloud workloads.

New Relic

  • Application performance monitoring for engineering teams — Software teams use New Relic APM to trace and optimize application performance across microservices.
  • Enterprise-wide observability consolidation — Large enterprises consolidate APM, infrastructure, and log monitoring into one unified New Relic platform to reduce tool sprawl.
  • Startup and small-team monitoring on the free tier — Small teams and startups use New Relic's free 100 GB tier to get production monitoring without upfront cost.

Frequently Asked Questions

Which is cheaper, Datadog or New Relic?

New Relic has the more accessible free entry point, its Free plan includes 100GB of monthly data ingest and access to all 50+ platform capabilities, while Datadog's Infrastructure Free plan is scoped to infrastructure only and its paid products, APM, logs, and security, are billed as separate line items, making a true side-by-side total cost hard to determine from the documented facts alone.

Is Datadog good for teams that want simple, predictable pricing?

Not based on the documented facts, Datadog's modular, multi-unit pricing across infrastructure, APM, logs, and security is explicitly noted as harder to estimate than a flat per-seat tier, whereas New Relic's paid tiers use straightforward per-user pricing at $99 and $349 per month.

Can New Relic do everything Datadog does?

Partially, based on the documented facts, New Relic's 50+ capabilities cover infrastructure, application, and digital experience monitoring, but the provided facts do not document a dedicated AI Credits system or an explicit log-management product the way Datadog's facts do, so feature parity is not confirmed in every category.

Which tool has the more generous free tier?

New Relic, its documented Free plan provides 100GB of monthly data ingest with access to all core capabilities, while Datadog's Infrastructure Free plan is scoped to infrastructure monitoring only.

Does either Datadog or New Relic offer HIPAA or FedRAMP compliance?

New Relic documents FedRAMP and HIPAA eligibility available on its Enterprise plan; Datadog's provided facts do not document specific compliance certifications.

Which platform is easier to budget for as a business expense?

New Relic's per-user pricing tiers, Standard at $99 and Pro at $349 per user per month, follow a standard seat-based model that is easier to forecast than Datadog's modular billing across separately priced infrastructure, APM, logs, security, and AI Credits products.

Read the full Datadog review · Read the full New Relic review