The Register: Open source biz promises to slash bills with observability-as-a-service in the cloud

Source URL: https://www.theregister.com/2024/08/20/victoriametrics_cloud/
Source: The Register
Title: Open source biz promises to slash bills with observability-as-a-service in the cloud

Feedly Summary: AWS first, others to follow
VictoriaMetrics has become the latest open source company to offer a hosted product, claiming around five times the savings for customers.…

AI Summary and Description: Yes

Summary: VictoriaMetrics has launched a hosted observability product, promoting significant cost savings for customers while maintaining strong compliance and data handling practices. The offering emphasizes cloud-based solutions, particularly on AWS, and highlights the company’s commitment to integration and minimizing vendor lock-in.

Detailed Description:
VictoriaMetrics, an open-source observability software company, has introduced a hosted service that claims to provide significant cost advantages over competitors—reportedly five times the savings based on data ingestion rates. This move positions the company to cater to a broader audience, particularly those who prefer a fully managed observability solution, thus addressing common concerns in the market.

Key Points:
– **Service Offering**:
– Transition from a roll-your-own solution to “Observability-as-a-Service,” currently hosted exclusively on AWS, with plans for GCP and Azure in the future.
– The offering includes a free tier and enterprise-level features such as enhanced security protocols, support, and automated backups.

– **Compliance and Data Handling**:
– VictoriaMetrics has highlighted the importance of compliance concerning where observability data is stored, especially for customers operating in the EU. They have provided insights into deployment strategies that maintain geographic data separation for compliance purposes.
– The company is proactive in addressing customer needs for deployment in specific AWS regions and is open to collaboration for future expansions.

– **Cost Management**:
– Acknowledgement of customer concerns regarding transfer costs associated with AWS. The company aims to minimize traffic costs through its service design, although external data transfer fees remain a factor.
– Pricing for the service starts at $190 per month for a single node and $1,300 for a cluster, making it essential for prospective clients to budget for these expenses.

– **Vendor Lock-In and Compatibility**:
– A strong stance against vendor lock-in has been maintained. VictoriaMetrics supports integration with Prometheus and OpenTelemetry, alongside compatibility with Grafana Cloud.
– They facilitate transitions for customers wishing to move from cloud to on-premises installations by providing data in a compatible format.

– **Market Approach**:
– The company’s strategy appears to embrace a dual-path approach—maintaining open-source and cloud-based options without prioritizing one over the other. They advocate for cloud as a supportive element within their overall ecosystem rather than a replacement for traditional installations.

Overall, VictoriaMetrics is positioning itself to capitalize on the growing demand for cloud-based observability solutions while ensuring adherence to compliance and offering flexibility against the risks of vendor lock-in. Security and compliance professionals should take note of how such innovations can shape infrastructure strategies, particularly in managing observability data across diverse geographic and regulatory landscapes.