New Relic vs Datadog: Which APM Tool is Right for You?
Compare New Relic and Datadog for application performance monitoring. See pricing, features, and which tool fits your infrastructure monitoring needs.
Updated 2026-03 · 2026
New Relic
Full-stack observability platform with user-based pricing
Strengths
- +Generous free tier with 100GB/month data ingest
- +User-based pricing can be cheaper for small teams
- +Strong APM and distributed tracing capabilities
Weaknesses
- -User-based pricing gets expensive as team grows
- -Less comprehensive infrastructure monitoring than Datadog
- -Query language (NRQL) has learning curve
Best for
Small to medium teams focused on application performance who want predictable per-user pricing
Datadog
Comprehensive monitoring platform with host-based pricing
Strengths
- +Most comprehensive monitoring platform available
- +Excellent infrastructure and cloud monitoring
- +500+ integrations with third-party services
Weaknesses
- -Pricing complexity with multiple add-on costs
- -Can become very expensive at scale
- -Overwhelming for simple use cases
Best for
Organizations needing comprehensive infrastructure monitoring across cloud environments with complex architectures
Feature Comparison
| Feature | ||
|---|---|---|
| Free Tier | 100GB data/month, 1 user | 5 hosts, 14-day retention |
| APM | Included in all paid plans | $31/host/month |
| Infrastructure Monitoring | Basic included | $15/host/month (comprehensive) |
| Log Management | Included, 100GB free tier | $0.10/GB ingested + $1.27/million events |
| Distributed Tracing | Included in APM | $1.70/million spans |
| Custom Metrics | Included in data ingest | $0.05 per 100 custom metrics |
| Integrations | 450+ integrations | 500+ integrations |
| Alerting | Unlimited alerts included | Unlimited alerts included |
| Synthetic Monitoring | $0.005 per check | $5/10k API tests |
| Mobile App Monitoring | Included in APM | $0.001 per session |
| Data Retention | 8 days default, up to 13 months | 15 months metrics, 15 days logs |
| Support | 24/7 support on paid plans | 24/7 support on Pro+ plans |
The Verdict
New Relic wins for small teams focused on application performance with its generous free tier and predictable user-based pricing. Datadog is the better choice for organizations needing comprehensive infrastructure monitoring across complex cloud environments, despite higher costs. For budget-conscious teams, New Relic's free tier offers more value, while Datadog justifies its premium pricing with superior infrastructure visibility and integrations.