PrefactorvsArizevsDatadog

Arize vs Datadog: how to choose

Both trace agents, run experiments on datasets and score production traffic, and both accept OpenTelemetry. Arize lets you start free on your own infrastructure with Phoenix; Datadog puts agent traces next to the APM and infrastructure data you already send it. Since Dynatrace bought Arize, each now belongs to a competing observability suite.[3][4]

support-agent v4 · one run, two layersexample
Illustrative run, showing what each layer tells you
Arize / Datadogsee
fetch_customer212ms · 1.2k tok
apply_refund1.4s · 3.1k tok
send_reply340ms · 0.8k tok
trace recorded, no verdict
Prefactoradds
Did its job✓ yes
Quality84 / 100
Cost$0.42 · in budget
Drift vs baselinenone
✓ a run that breaches its schema is held for review
§01 / THE SHORT ANSWERtl;dr: which, and when
TL;DR

What is the difference between Arize and Datadog?

Arize gives you a free tool to run yourself (Phoenix) and a hosted platform (AX), while Datadog Agent Observability, formerly LLM Observability, is a hosted module of the Datadog platform with no self-hosted option. Dynatrace completed its acquisition of Arize on 1 October 2026, and Phoenix and AX continue. Both read OpenTelemetry and OpenInference traces, so the wider observability suite you already run usually decides it.

The short answer

At a glance (checked 20 October 2026)

Decision factorArizeDatadog
OwnershipAcquired by Dynatrace, completed 1 October 2026; Phoenix and AX continueDatadog, a public company (Nasdaq: DDOG); needs a Datadog account
ProductsPhoenix (self-hosted) and Arize AX (hosted, or self-hosted on Enterprise)Agent Observability, renamed from LLM Observability in June 2026
Self-hostingPhoenix free; AX on Enterprise, including air-gappedNone; Lapdog is a local development viewer only
LicencePhoenix: Elastic License 2.0 (source-available); AX: commercialProprietary SaaS; SDKs such as dd-trace-py are open source
OpenTelemetryBuilt on it; Arize maintains the OpenInference conventionsAccepts OTLP with GenAI conventions v1.37+ or OpenInference; 3 to 5 minute ingestion delay
Run-time blockingPartial: AX guards run in your own code via Guardrails AIPartial: needs AI Guard, a separate product in Limited Availability
Free tierAX Free: 25k spans a month, 15-day retention; Phoenix free to self-hostFree: 40K LLM spans a month, 15-day retention
First paid tierAX Pro: $50 a month, 50k spans, 30-day retentionPro: $160 a month billed annually, 100K LLM spans
§02 / CAPABILITY MATRIXside by side: what each covers
Side by side

Arize vs Datadog: capabilities side by side

CapabilityArizeDatadogPrefactor
Observe
LLM call tracing✓✓✓
Multi-step agent tracing (tool calls, nested spans)✓✓✓
Cost tracking✓✓✓
OpenTelemetry support✓✓✓
Evaluate
Offline evals (datasets, experiments)✓✓✓
Online evals on production traffic✓✓✓
LLM-as-a-judge scoring✓✓✓
Code-based evaluators✓✓✓
Human review and annotation✓✓✓
Prompt versioning and playground✓✓—
Act on findings
Runtime controls on live agent actionsPartialPartial✓
Gateway or proxy in the request pathPartial——
Licence and deployment
Open sourcePartialPartialPartial
Self-hosting✓—Partial
§03 / IN DEPTHdetail: the reasoning
In depth

Which observability suite you are buying into

Since 1 October 2026 this has been a choice between two observability suites. Dynatrace completed its acquisition of Arize that day and says Phoenix and AX will continue, with Arize capabilities integrated into Dynatrace over time. Datadog Agent Observability, renamed from LLM Observability in June 2026, is already one module of the Datadog platform and needs a Datadog account.

Read more

If your services already report to Datadog, its module links an agent's traces to APM, infrastructure and RUM data for the same request, and the cost lands on a bill you already pay. If you run Dynatrace, Arize is the product that will move closer to it. If you run neither, expect Arize's packaging to shift as the integration proceeds, and check the terms before a large rollout.

Can the traces stay on your own infrastructure

Arize has a free route: Phoenix installs with pip, Docker or Kubernetes and includes tracing, datasets, experiments, LLM and code evaluators and prompt versioning. Its licence is the Elastic License 2.0, which lets you modify and self-host the code but not offer it to others as a hosted service. Arize AX can also run on your own Kubernetes cluster, connected, semi-restricted or air-gapped, on the Enterprise plan.

Read more

Datadog documents no self-hosted deployment. Lapdog runs a local trace viewer without a Datadog account, but it is a development tool, not a production option. Agent Observability is also not available on Datadog's US government sites. If traces must stay inside your network, Arize is the only one of the two that allows it.

One limit on the free route: continuous evaluation of production traffic, monitors and alerting are AX features, and Phoenix's own documentation points to AX for them. Self-hosted Phoenix covers development and offline evaluation, not scoring live traffic.

Scoring production traffic

Both score live traffic with sampling. AX runs evaluator tasks at span, trace or session level, with LLM judges, code evaluators and, since September 2026, agent-as-a-judge on every plan. Datadog runs custom LLM-as-a-judge and built-in evaluators on targeted production spans, at trace or session level as well, using your own provider account for the judge model.

Read more

Code evaluators work differently. In Datadog they run automatically only inside Experiments; in production you run them in your application and submit the results through the SDK or HTTP API. Arize AX lists code evaluators alongside LLM judges for online evals, and Phoenix added Python and TypeScript code evaluators in Docker sandboxes in October 2026.

For multi-agent systems, AX draws an agent trajectory graph, set automatically for LangGraph, CrewAI and AG2. Datadog's agent monitoring shows tools used and handoffs for OpenAI Agents SDK, LangGraph and CrewAI in Python, and auto-instruments Claude Agent SDK, Google ADK, Pydantic AI and Strands.

Pricing shape

As of 20 October 2026, both offer a free hosted tier with 15-day retention: AX Free covers 25k spans a month and Datadog's Free plan covers 40K LLM spans a month. AX Pro is $50 a month for 50k spans with 30-day retention. Datadog Pro is $160 a month billed annually, or $200 month to month, for the first 100K LLM spans, then $3.50 per 10K, with retention beyond 15 days sold as an add-on.

Read more

Both AX Free and AX Pro include unlimited users, evals and experiments. AX Enterprise is custom priced and is the only plan that self-hosts AX; Phoenix stays free to self-host.

The units differ. Datadog bills only spans that call an LLM provider; tool, agent, workflow, retrieval and embedding spans are not billed. An agent that makes several tool calls for each model call therefore counts for less on Datadog's meter than its total span count suggests. Run a week of your own traces against Arize's pricing and Datadog's pricing before you commit.

§04 / THE QUALITY GAPour take: where it stops
Our take

Where Prefactor fits

We sell the layer this section describes. Read it with that in mind.

Stated plainly, since Prefactor publishes this page: Prefactor is an agent evaluation platform that scores each step of a run and can act on what it finds through runtime policies on tool calls and data access, approval holds for risky actions, and a kill switch for a run, an agent or a team. Neither product here does that from its evaluation layer: Arize AX documents guards that run in your own code around model calls, and Datadog sells blocking separately as AI Guard, in limited availability. Prefactor has no prompt playground or prompt registry and its platform is hosted, so if free self-hosting or prompt iteration is the requirement, Phoenix or Datadog's prompt tooling is the better fit. See the full comparison of 15 platforms.

See it on your own agents

A working session on a fleet like yours: watch a run evaluated, catch a drift, walk the record.

§05 / WHICH TO PICKdecide: by your stack
Which to pick

Which one fits

Pick Arize if

  • You run Dynatrace, or expect to.
  • You need a free self-hosted option, or an air-gapped deployment on Enterprise.
  • OpenInference is already the instrumentation standard in your code.
  • A $50 first paid tier suits a small team starting out.

Pick Datadog if

  • Your services already report to Datadog APM and infrastructure monitoring.
  • You want an agent's traces correlated with the backend calls behind the same request.
  • Your agents make many tool calls, and billing only LLM spans keeps the meter low.
  • A hosted-only product is acceptable to your compliance review.
§06 / HOW WE REVIEWEDsources: checked October 20, 2026
Methodology

How we reviewed this comparison

Reviewed against public product and documentation pages on October 20, 2026. If a vendor has changed a feature, product name, or positioning since then, send a correction and we will update it. Numbered source links in the page body point to the ordered sources below.

Sources reviewed

  1. Arize pricingChecked 2026-10-20.
  2. Arize documentation
  3. Arize ownership and status
  4. Datadog pricingChecked 2026-10-20.
  5. Datadog documentation
  6. Datadog website
  7. Prefactor platform
Prefactor context

Methodology

  • Reviewed public product, documentation, and launch material visible at the time of writing.
  • Mapped each page to the primary buyer, control layer, and runtime capabilities each vendor describes publicly.
  • Prefer direct product and documentation pages over analyst summaries or reseller material.
§07 / QUESTIONSfaq: the common ones
Questions
What is the difference between Arize and Datadog for agent observability?
Both trace agents, run experiments and score production traffic. Arize offers Phoenix, which you can self-host for free, and Arize AX, a hosted platform with an Enterprise self-hosted option. Datadog Agent Observability is a hosted module of the Datadog platform, tied to its APM and infrastructure data, with no self-hosted option.
How does Prefactor compare with Arize and Datadog?
Prefactor is an agent evaluation platform for teams building AI agents: it observes every agent run from development to production, evaluates whether the agent did its job, and shows how to improve it. As of 20 October 2026, Prefactor can block or hold a live agent action; Arize and Datadog do so in part. Arize and Datadog both include prompt versioning and a playground. Prefactor evaluates how prompts perform in live runs rather than providing a prompt playground or registry.
Can I self-host Datadog Agent Observability?
No. As of 20 October 2026 Datadog documents only Datadog-hosted sites. Lapdog, a local trace viewer, runs without a Datadog account but is meant for development, not production.
Can I send the same OpenTelemetry traces to Arize and Datadog?
Yes. Arize is built on OpenTelemetry and maintains the OpenInference conventions, and Datadog accepts OTLP traces using either the OpenTelemetry GenAI conventions (v1.37 or later) or OpenInference. Datadog notes a 3 to 5 minute ingestion delay for OTLP traces.
What changes for Arize users after the Dynatrace acquisition?
Dynatrace completed the acquisition on 1 October 2026 and says Phoenix and AX will continue, with Arize capabilities integrated into Dynatrace over time. Packaging may change as that happens, so check current terms before signing a multi-year contract.
Is Phoenix enough for production monitoring?
Not on its own. Phoenix covers tracing, experiments, evaluators and prompt versioning, but continuous evaluation of production traffic, monitors and alerting are Arize AX features, and Phoenix's documentation points to AX for them.
Who owns Arize?
As of 20 October 2026: Dynatrace, which completed its acquisition of Arize on 1 October 2026. Dynatrace says Phoenix and AX will continue and that Arize capabilities will be integrated into Dynatrace over time.
Is Arize open source?
Partly. Phoenix's code is public under the Elastic License 2.0, which is source-available rather than open source: you can self-host and modify it but not offer it to others as a hosted service. AX is commercial.
How much does Arize cost?
As of 20 October 2026: AX Free is $0 for 25k spans a month with 15-day retention. AX Pro is $50 a month for 50k spans with 30-day retention. AX Enterprise is custom and is the only self-hosted AX option. Phoenix is free to self-host.
Can Arize block or hold a live agent action?
Partly. Arize AX documents guards built on the Guardrails AI framework that run in your own code around model calls. There is no documented approval or policy layer for agent tool actions.
Who owns Datadog?
As of 20 October 2026: Datadog, a public company (Nasdaq: DDOG). Agent Observability is one product within the Datadog platform and needs a Datadog account.
Is Datadog open source?
Partly. The platform is proprietary SaaS; instrumentation SDKs such as dd-trace-py are open source. There is no self-hosted option.
How much does Datadog cost?
As of 20 October 2026: Free covers 40K LLM spans a month with 15-day retention. Pro is $160 a month billed annually for 100K LLM spans, then $3.50 per 10K. Only LLM spans are billed; tool and agent spans are not.
Can Datadog block or hold a live agent action?
Partly. Agent Observability monitors and evaluates but does not block. Blocking prompts, responses and tool calls needs AI Guard, a separate Datadog product in limited availability, billed per token scanned.
Is Prefactor open source?
Partly. Its deterministic evals package is Apache-2.0; the platform is hosted.
How much does Prefactor cost?
As of 20 October 2026: Dev is free with 5,000 spans a month. Startup is $49 a month and Scaleup $199 a month. Enterprise is custom above 4 million spans a month.
Can Prefactor block or hold a live agent action?
Yes. Runtime policies can block, throttle, sandbox or escalate an agent's tool calls and data access before they run, approval routing holds risky actions for a person, and a kill switch stops a run, an agent or a team.
Reviewed against public sources on October 20, 2026Suggest a correction

Score the run, then act on it

Prefactor scores each step of every agent run and can hold or stop an action when a score says it should not happen. Start on the free tier: 5,000 spans a month, no credit card required.

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Mission ControlLive agent health with 7-day activity heartbeat
Claims Proc...68
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See how every agent performs, and make it better

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