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Self-Hosted vs Cloud Log Management: The Real Cost Comparison

We break down the true cost of Datadog, Splunk, and cloud logging services vs self-hosting with Purl. The numbers might surprise you.

Otabek IsmoilovJanuary 28, 20266 min read

The Hidden Costs of Cloud Logging

Cloud logging services like Datadog, Splunk, and New Relic advertise simple per-GB pricing. But the actual cost is much higher than it appears:

Datadog Log Management - **Ingestion**: $0.10/GB (seems cheap, right?) - **Retention**: $0.05/GB/month for 15+ days - **Indexing**: $1.70/million events for custom indexes - **Real cost at 100GB/day**: $300/mo ingestion + $150/mo retention + indexes = **$5,000-8,000/month**

Splunk Cloud - **Per GB pricing**: $150/GB/day (not a typo) - **Real cost at 100GB/day**: **$15,000+/month**

AWS CloudWatch - **Ingestion**: $0.50/GB - **Storage**: $0.03/GB/month - **Queries**: $0.005/GB scanned - **Real cost at 100GB/day**: **$1,500-2,500/month** (plus egress fees)

Self-Hosted with Purl: Total Cost of Ownership

Let's calculate the real cost of self-hosting Purl for the same 100GB/day workload:

Infrastructure - **Server**: 8 vCPU, 16GB RAM VPS = ~$80/month (Hetzner/OVH) - **Storage**: 500GB NVMe (100GB/day × 10x compression × 90 days) = included - **Backup storage**: 100GB S3 = ~$2/month

Software - **Purl Pro license**: $39/month - **ClickHouse**: Free (open source)

Operations - **Maintenance time**: ~1 hour/month (updates, monitoring) - **No dedicated SRE needed** — Purl is designed for zero-maintenance operation

Total: ~$121/month

That's $121/month vs $5,000-15,000/month for the same workload. Even accounting for engineer time, self-hosting saves 90%+.

When Cloud Makes Sense

Self-hosting isn't always the answer. Cloud logging makes sense when:

  • You have < 1GB/day of logs — free tiers cover you
  • You have zero ops capacity — no one to SSH into a server
  • Compliance requires a vendor — some auditors prefer named vendors
  • Multi-region is critical — cloud providers have global presence

When Self-Hosted Wins

Self-hosting with Purl wins when:

  • Cost sensitivity — you're paying $500+/month for cloud logging
  • Data sovereignty — logs must stay in your infrastructure
  • Volume growth — cloud costs scale linearly, self-hosted costs are nearly flat
  • Control — you want to own your data and tooling

The Purl Sweet Spot

Purl is designed for the 80% of teams who don't need Datadog's 500+ integrations but do need reliable, fast log management:

  • Free tier: 3 servers, 7-day retention — perfect for side projects
  • Pro ($39/mo): 25 servers, 90-day retention, unlimited users — covers most teams
  • Enterprise ($199/mo): Unlimited everything, SSO, audit logs — for regulated industries

No per-GB fees. No surprise bills. No vendor lock-in.