Avoiding the cost trap in observability tools

Observability tools play a key role in today’s IT environments—especially during cloud migrations. They help you spot issues early, troubleshoot faster, and prevent costly outages. But their price often comes with a surprise. Many organizations fall into a cost trap that only shows up over time.
We’ll show you what to watch for and how to build the right mix of tools to keep both your systems and your budget on track.

Why observability matters—and why it can cost more than you expect

 Observability goes beyond classic IT monitoring. With AI-powered tools, you don’t just monitor systems—you also detect anomalies and uncover root causes. That’s especially helpful in application performance management (APM), where logs, metrics, and traces offer real-time insights.
But here’s the challenge: the more data you generate, the more it can cost. Most tools charge based on data volume, and many use unclear pricing models—making it tough to predict what you’ll actually pay.

When Data Volumes Explode, Costs Can Too

Switching to microservices, Kubernetes, or serverless architectures brings big benefits—but also a new challenge: data overload. Instead of a few large systems, you now have hundreds of smaller services. That means far more logs, metrics, and traces. Experts say data volumes could double every two to three years.
Even a one-time spike—like a sudden peak load—can send usage soaring, and with it, your costs. The real kicker? Many providers bill based on peak consumption, not your average. Short bursts of high usage can blow your monthly budget.

Pricing Models—Often Not in Your Favor

Pay-per-use sounds fair at first. But many pricing models are tricky. Sometimes you pay based on CPU cores, sometimes on hosts, sometimes on logs. Key features may be locked behind costly add-ons. And any unused volume? It’s gone.
Worse still, just a few hours of high usage can send your monthly costs soaring—even if the system sits idle most of the time.

Our Tip: Find the Right Tool Mix

Not every system needs the most advanced setup. Focus your observability tools where they matter most—and use classic IT monitoring where it’s enough.

Here’s how to strike the right balance:
•    Use observability for high-impact areas like APM or security-critical applications
•    Use monitoring for standard, lower-priority services
•    Keep data volumes in check by reviewing your strategy regularly

Your benefits
.    Lower costs with targeted use
•    Higher efficiency by avoiding wasted resources
•    More flexibility with needs-based adjustments

Quote

“Use traditional IT monitoring for cost-effective infrastructure oversight, and rely on observability tools for deep insights into proprietary software running on hyperscalers.”

   


 
Alexander Wiedenbruch
Director R&D & Domain Representative, USU GmbH

How We Do It at USU

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Our guide demonstrates how companies can strategically manage their IT resources to prevent financial surprises while ensuring a high-performance IT infrastructure. 

Ready to dive deeper? 

Our guide demonstrates how companies can strategically manage their IT resources to prevent financial surprises while ensuring a high-performance IT infrastructure. 

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Conclusion: Cost Control Through Strategy

Observability is powerful, but it’s not needed everywhere. With the right mix of tools, you can protect critical systems and keep IT spending in check. That strengthens your infrastructure and gives you a competitive edge.