Application Performance Monitoring

Dynatrace is an AI-powered observability platform designed for managing the performance and health of applications, infrastructure, and cloud-native workloads.

Reviewed by 7wData

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Publisher review

Dynatrace is an AI-powered observability platform designed for managing the performance and health of applications, infrastructure, and cloud-native workloads. It targets DevOps, SRE, and IT operations teams in organizations with complex, multi-cloud environments, particularly those running microservices and containerized architectures. The platform provides automated root cause analysis, real-time topology discovery, and intelligent baselining to reduce mean time to resolution (MTTR). It is suitable for enterprises that need end-to-end visibility across their entire stack, from mainframes to Kubernetes pods, and who are willing to commit to a consumption-based pricing model with a minimum annual spend.

Dynatrace uses a patented AI engine called Davis to automatically detect anomalies, identify root causes, and provide actionable insights without manual configuration. It offers real-time topology discovery via Smartscape, which maps all dependencies in your environment. The platform supports hourly pricing for services like Full-Stack Monitoring at $0.01 per memory-GiB-hour, Infrastructure Monitoring at $0.04 per host-hour, and Kubernetes Platform Monitoring at $0.002 per pod-hour. It also includes Log Management & Analytics at $0.20 per GiB ingested, Real User Monitoring at $0.00225 per session, and Runtime Vulnerability Analytics at $0.00225 per memory-GiB-hour. Dynatrace provides a free trial and a playground for testing.

Dynatrace was named a Leader in the 2024 Gartner Magic Quadrant for Observability Platforms and ranked #1 out of 17 vendors in the 2024 Gartner Critical Capabilities for Observability Platforms Report across three use cases: Application Health and Performance Monitoring (4.27/5), Hybrid Infrastructure Platform Operations (4.25/5), and Business Insights (4.22/5). It also received a 4.6 out of 5.0 star rating in the 2024 Gartner Peer Insights Voice of the Customer report, with 94% of customers recommending it. Key competitors include Datadog APM, New Relic, Splunk AppDynamics, Elastic APM, and Instana.

The primary trade-off is the consumption-based pricing model (Dynatrace Platform Subscription), which requires a minimum annual commitment that can be significantly higher than actual usage for small deployments. Pricing complexity can also be a challenge for small environments, as the granular hourly rates for multiple services (e.g., Full-Stack Monitoring, Log Analytics, RUM) can add up quickly. Additionally, while Dynatrace offers deep observability, its AI-driven approach may require a learning curve for teams accustomed to traditional monitoring tools. Finally, the platform's focus on cloud-native and enterprise stacks means it may be overkill for simple, static environments.

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How it works

  1. AI-powered root cause analysis

    Davis AI automatically detects anomalies and identifies root causes, reducing MTTR by eliminating manual investigation.

  2. Complete stack visibility

    Provides end-to-end observability for applications, infrastructure, cloud-native workloads, and mainframes in one platform.

  3. Real-time performance intelligence

    Delivers live metrics and intelligent baselines for proactive performance management across hybrid environments.

  4. Automated cloud-native observability

    Supports Kubernetes, microservices, and serverless architectures with automatic discovery and monitoring of pods and containers.

  5. Team collaboration improvement

    Eliminates war rooms by providing a single source of truth for incidents, improving cross-team communication.

  6. Optimized data and resource usage

    Uses Grail data lakehouse to store and query logs, metrics, and traces efficiently, reducing storage costs.

  7. Hourly consumption-based pricing

    Charges per hour for services like Full-Stack Monitoring ($0.01/GiB-hour) and Infrastructure Monitoring ($0.04/host-hour), avoiding high watermark pricing.

Strengths and trade-offs

Strengths

  • Recognized as a Customers’ Choice in the 2024 Gartner Peer Insights Voice of the Customer for Observability Platforms, with a 4.6 out of 5.0 star rating.
  • Named a Leader in the 2024 Gartner Magic Quadrant for Observability Platforms, positioned furthest for Completeness of Vision and highest for Ability to Execute.
  • Ranked #1 out of 17 vendors in the 2024 Gartner Critical Capabilities for Observability Platforms Report across three use cases, including Application Health and Performance Monitoring (4.27/5).
  • 94% of customers would recommend Dynatrace solutions based on 102 reviews as of October 2024, according to Gartner Peer Insights.

Trade-offs

  • Requires a minimum annual commitment that can be significantly higher than actual usage for small deployments, making it less cost-effective for small teams.
  • Pricing can be complex and may not align with actual usage for small environments, as multiple granular services (e.g., Full-Stack Monitoring, Log Analytics, RUM) are billed separately.
  • The AI-driven approach may require a learning curve for teams accustomed to traditional monitoring tools, potentially slowing initial adoption.
  • The platform's focus on cloud-native and enterprise stacks means it may be overkill for simple, static environments, leading to unnecessary complexity and cost.

Pricing context

Consumption-based Dynatrace Platform Subscription (DPS) with hourly rates: Full-Stack Monitoring $0.01/GiB-hour, Infrastructure Monitoring $0.04/host-hour, Kubernetes Platform Monitoring $0.002/pod-hour, Log Management & Analytics $0.20/GiB ingested, Real User Monitoring $0.00225/session. Minimum annual commitment required.

Getting started with Application Performance Monitoring

  1. Sign up for Dynatrace

    Go to the Dynatrace website and click the free trial button. Provide your email address and company details to create an account. You will receive a confirmation email with a link to activate your environment.

  2. Install OneAgent on hosts

    Download the OneAgent installer for your operating system from the Dynatrace web UI. Run the installer on each host you want to monitor, following the on-screen instructions. The agent will automatically discover applications and services.

  3. Configure monitoring for Kubernetes

    In the Dynatrace web UI, navigate to the Kubernetes monitoring section. Follow the instructions to deploy the Dynatrace Operator in your cluster using Helm or a manifest file. The operator will automatically monitor pods and containers.

  4. Set up a dashboard for key metrics

    In the Dynatrace web UI, create a new dashboard by clicking the Dashboards tab and selecting Create Dashboard. Add tiles for metrics like response time, error rate, and CPU usage. Save the dashboard for real-time visibility.

  5. Schedule regular anomaly alerts

    In the Dynatrace web UI, go to the Alerting section and create a new alerting profile. Define conditions for anomaly detection, such as high response time or error rate. Set notification channels like email or Slack to receive alerts.

Frequently Asked Questions

What is Dynatrace and how does it help with application performance monitoring?

Dynatrace is an AI-powered observability platform that manages application, infrastructure, and cloud-native workload performance. It provides automated root cause analysis, real-time topology discovery, and intelligent baselining to reduce mean time to resolution for DevOps, SRE, and IT teams.

How does Dynatrace pricing work for application monitoring?

Dynatrace uses a consumption-based subscription model with hourly rates. For example, Full-Stack Monitoring costs $0.01 per memory-GiB-hour, Infrastructure Monitoring is $0.04 per host-hour, and Kubernetes Platform Monitoring is $0.002 per pod-hour. A minimum annual commitment is required.

What are the main strengths of Dynatrace for APM?

Dynatrace was named a Leader in the 2024 Gartner Magic Quadrant for Observability Platforms and ranked #1 in Critical Capabilities for Application Health Monitoring. It has a 4.6 out of 5.0 star rating on Gartner Peer Insights, with 94% of customers recommending it.

What are the weaknesses or trade-offs of using Dynatrace?

Dynatrace requires a minimum annual commitment that can be higher than actual usage for small deployments. Pricing is complex with multiple granular services billed separately. Its AI-driven approach has a learning curve, and it may be overkill for simple, static environments.

How does Dynatrace compare to competitors like Datadog APM?

Key competitors include Datadog APM, New Relic, Splunk AppDynamics, Elastic APM, and Instana. Dynatrace distinguishes itself with its patented Davis AI engine for automated root cause analysis and real-time topology discovery via Smartscape, but its consumption-based pricing may be less cost-effective for small teams.

What features does Dynatrace offer for cloud-native observability?

Dynatrace supports Kubernetes, microservices, and serverless architectures with automatic discovery and monitoring of pods and containers. It provides complete stack visibility from mainframes to cloud-native workloads, using Grail data lakehouse for efficient log, metric, and trace storage.

Alternatives

How Application Performance Monitoring compares

Direct head-to-head against 3 competitors. Picked by 7wData.

This tool

Application Performance Monitoring

Pricing
Consumption-based Dynatrace Platform Subscription (DPS) with hourly rates: Full-Stack Monitoring $0.01/GiB-hour, Infrastructure Monitoring $0.04/host-hour, Kubernetes Platform Monitoring $0.002/pod-hour, Log Management & Analytics $0.20/GiB ingested, Real User Monitoring $0.00225/session. Minimum annual commitment required.
Target
Dynatrace is an AI-powered observability platform designed for managing the performance and health of applications, infrastructure, and cloud-native workloads.
Strength
Recognized as a Customers’ Choice in the 2024 Gartner Peer Insights Voice of the Customer for Observability Platforms, with a 4.6 out of 5.0 star rating.
Watch for
Requires a minimum annual commitment that can be significantly higher than actual usage for small deployments, making it less cost-effective for small teams.

Datadog

Pricing
$15/host/month for APM; additional costs for logs and RUM
Target
Cloud-native teams needing broad traces-logs-metrics correlation
Deployment
SaaS cloud
Strength
Deep integration across 700+ technologies and unified dashboards
Watch for
Pricing escalates quickly with data volume and add-on features

Dynatrace

Pricing
Custom/enterprise pricing based on host memory and feature tiers
Target
Large enterprises needing AI-driven root cause analysis
Deployment
SaaS cloud or on-premises
Strength
Automated discovery via OneAgent and Davis AI for anomaly detection
Watch for
High cost for large deployments; complex UI for new users

New Relic

Pricing
Free tier available; paid from $10/user/month
Target
Teams wanting fast onboarding with full-stack APM and UX monitoring
Deployment
SaaS cloud
Strength
Quick setup with auto-instrumentation and broad language support
Watch for
Data retention limits on free tier; costs rise with usage

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Sources

Reporting on this tool draws on these publicly available sources.

  1. ir.dynatrace.com
  2. www.dynatrace.com
  3. www.dynatrace.com
  4. www.dynatrace.com
  5. www.dynatrace.com