How to Reduce Overspend on Datadog Renewals.

Datadog and the Software Overspend Problem

Datadog has become a central platform for monitoring and securing cloud environments. But as companies adopt more of its modules and enterprise features, software costs can quickly outpace actual usage, creating hidden overspend. When usage isn’t tightly managed and pricing creeps upward, even a platform delivering value starts becoming a budget risk.

Rapid Growth, New Features and the Overspend Signal

Datadog has been growing quickly, with 25-28% revenue increases in early 2025, and is expanding beyond core monitoring into AI observability and enterprise-grade features. They recently announced new features that give better support for Oracle Cloud Infrastructure (OCI). 

These updates allow companies to:

• Monitor GPU usage: Optimize costs and performance for AI workloads.

• Manage cloud spending: Track usage and find ways to save money without impacting performance.

• Improve security: Detect threats in cloud environments with better security event monitoring.

  
  

Datadog can use these updates to justify its premium pricing, emphasizing the advanced capabilities and enterprise-grade support now available for organizations using Oracle’s cloud. While these improvements provide real value, they also make it easier for Datadog to package more modules and higher-tier plans into contracts, driving up costs and contributing to software overspend if teams aren’t actively monitoring usage and optimizing their stack.

Smart Strategies to Cut Datadog Overspend

While Datadog delivers powerful monitoring and observability tools, the sheer complexity of its product mix and pricing model often causes overspend. To prevent that, regularly audit usage, and track which modules and seats are actively used versus purchased. This allows teams to remove or downgrade underused features and stop paying for tools they don’t need.

Next, benchmarking Datadog pricing against competitors like New Relic or Dynatrace can give a rough idea of market rates, but it’s not always accurate. Consulting industry experts with hands-on Datadog sales experience provides deeper insights and uncovers real savings opportunities that simple comparisons often miss.

When it comes to unit price reductions, Datadog is tough. Its pricing transparency is much higher than most enterprise software companies, in many ways similar to Atlassian. As a result, you can be forgiven for paying the list price because you see it on the website. Still, you can gain leverage by starting early, getting competitive quotes, credible migration plans and relevant Datadog sales team escalations. Done right, you can get 10-25% better pricing.

Software Overspend Isn’t Just a Datadog Issue

This pattern is not unique to Datadog. Across the SaaS space, we see vendors layering capabilities, positioning premium tiers as “essential,” and shifting from usage‑based modest contracts to enterprise scale agreements. Without governance, many organizations pay for what they could use rather than what they do use. A strong monitoring tool becomes a cost centre when seats languish, modules go unused, or renewal terms default to “more of the same”.

How Wyn Helps Businesses Save 10-25% on Datadog Renewals

Datadog is a powerful platform with a very complex product mix, but that doesn’t mean you need to overpay for it. Wyn helps businesses navigate renewals with a clear, data-backed approach, identifying overspend and negotiating smarter with vendors like Datadog and its main competitors (for example, New Relic, Dynatrace and LogicMonitor). We secure 10-25% better pricing by negotiating lower unit costs, not by cutting licenses. Wyn operates on a performance-based model, so you only pay if we save you money.

To find out how much you can save on your next Datadog renewal, get in touch with Wyn today for a free assessment of your latest vendor quote.

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