The Economics of Self-Hosting vs. Managed Monitoring

The "Obvious" Math That's Wrong Engineer A: "Datadog is $15K/month. Prometheus is free. We should self-host." Engineer B: "But we'd need to pay an SRE to run it. That's $150K/year." Engineer A: "Prometheus doesn't need a full SRE. It's easy." Engineer B: "Famous last words." This conversation happens at every company. Both sides have points. The real math is more complex. The Total Cost Breakdown Managed (Datadog, New Relic, Dynatrace) : Licensing: $X/month (scales with hosts, events, logs) Inte