Datadog disclosed a one-time $65M upfront bill in Q1 2022, later confirmed to be from Coinbase for 2021 usage.
Coinbase’s rapid growth in 2021 led to high observability costs, which they settled in early 2022.
Coinbase began building an in-house Grafana/Prometheus/ClickHouse stack to reduce costs and gain control.
Datadog offered a revised contract that convinced Coinbase to remain a customer at much lower future rates.
Tech companies often consider in-house observability when vendor spend exceeds $2–5M per year, balancing infra and team costs.
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