PrefactorvsDatadogvsLangfuse

Datadog vs Langfuse: how to choose

Both cover tracing, experiments, online evaluation, annotation queues and prompt versioning. Langfuse is the open-source option you can run yourself for free; Datadog is the hosted option that links agent traces to the APM and infrastructure data you already collect there. Hosting and your existing monitoring stack usually decide it.[1][6]

support-agent v4 · one run, two layersexample
Illustrative run, showing what each layer tells you
Datadog / Langfusesee
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 Datadog and Langfuse?

Langfuse is an open-source (MIT, apart from licensed add-ons) LLM engineering platform you can self-host for free, while Datadog Agent Observability, formerly LLM Observability, is a hosted module of the Datadog platform with no self-hosted option. ClickHouse acquired Langfuse in January 2026; Langfuse says its licence and self-hosting are unchanged. Both trace agents, run experiments, score production traffic and version prompts.

The short answer

At a glance (checked 20 October 2026)

Decision factorDatadogLangfuse
OwnershipDatadog, a public company (Nasdaq: DDOG); needs a Datadog accountAcquired by ClickHouse in January 2026; licence and self-hosting unchanged, per Langfuse
LicenceProprietary SaaS; SDKs such as dd-trace-py are open sourceMIT, except add-on features in the ee folders
Self-hostingNone documentedFree, via Docker or Kubernetes
OpenTelemetryOTLP with GenAI conventions v1.37+ or OpenInference; reads Langfuse instrumentationOTLP over HTTP; gRPC not supported
Code evaluators in productionRun in your app and submitted; automatic only in ExperimentsPython or TypeScript evaluators attached to live observations
Correlation with backendLinked to APM, infrastructure and RUM dataLLM and agent traces only
Free tierFree: 40K LLM spans a month, 15-day retentionHobby: 50k units a month, 30 days of data; self-hosting free
First paid tierPro: $160 a month billed annually, 100K LLM spansCore: $29 a month, 100k units
§02 / CAPABILITY MATRIXside by side: what each covers
Side by side

Datadog vs Langfuse: capabilities side by side

CapabilityDatadogLangfusePrefactor
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 actionsPartial—✓
Gateway or proxy in the request path———
Licence and deployment
Open sourcePartial✓Partial
Self-hosting—✓Partial
§03 / IN DEPTHdetail: the reasoning
In depth

Open source on your servers, or a module of Datadog

Langfuse publishes its platform under the MIT licence, apart from add-on features in licence-keyed ee folders, and documents a free self-hosted path on Docker or Kubernetes backed by Postgres, ClickHouse, Redis and object storage. ClickHouse acquired Langfuse in January 2026, and Langfuse stated that its roadmap and licence would not change and that self-hosting stays a first-class path. It has kept releasing since, most recently v4.64.0 on 19 October 2026.

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Datadog Agent Observability, renamed from LLM Observability in June 2026, is proprietary and hosted only. It is not available on Datadog's US government sites, and Lapdog, its local trace viewer, is a development tool. In return, agent traces sit next to Datadog's APM, infrastructure and RUM data, so a failing agent step can be followed into the backend services behind it. If your services already report to Datadog, that link is the strongest reason to choose it; if traces must stay on your own servers, Langfuse is the one of the two that allows it.

Instrumentation and moving between them

Both accept OpenTelemetry, which keeps instrumentation portable. Langfuse acts as an OTLP backend over HTTP (not gRPC) and names OpenLLMetry and OpenLIT as compatible. Datadog accepts OTLP traces without its own SDK, using the OpenTelemetry GenAI conventions (v1.37 or later) or OpenInference, and its documentation says it also recognises OpenLLMetry and Langfuse instrumentation. Datadog notes a 3 to 5 minute ingestion delay for OTLP traces.

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That makes it practical to run both for a period: for example, Langfuse for prompt work and evaluation, and Datadog for production monitoring next to the rest of your services. Langfuse Cloud users have a separate date to plan for: Langfuse Cloud becomes v4-only on 16 November 2026, which may require migration work for existing users.

Evaluation workflow

Both run experiments on datasets, score sampled production traffic with LLM judges, queue traces for human review and version prompts with a playground. Langfuse's experiments can run against dataset items, production traces or local data, a GitHub Action fails a CI run below a score threshold, and since September 2026 evaluator backfills can score up to six months of past observations.

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The clearest difference is code evaluators. Since May 2026 Langfuse lets you write Python or TypeScript evaluators in the UI and attach them to live observations or experiments. Datadog runs code evaluators automatically only in Experiments; for production traffic you run them in your own application and submit the scores through the SDK or API. On prompts, Datadog adds A/B tests of prompt versions and per-environment targeting rules; Langfuse deploys versions by label without code changes and compares metrics across versions.

For multi-step agents, Langfuse added an agent graph view in July 2026 and groups multi-turn runs into sessions. Datadog shows tools used and handoffs for OpenAI Agents SDK, LangGraph and CrewAI in Python. Langfuse Cloud runs in EU, US, JP and HIPAA regions; Datadog runs on several Datadog sites.

Pricing shape

The two price on different units. As of 20 October 2026, Langfuse charges per unit ingested, counting traces, observations and scores: Hobby is free for 50k units a month with 30 days of data, Core is $29 a month for 100k units, then $8 per 100k, and Pro is $199 a month. Self-hosting has no subscription but adds the infrastructure you run. Datadog bills only spans that call an LLM provider: Free covers 40K a month with 15-day retention, and Pro is $160 a month billed annually for the first 100K, then $3.50 per 10K.

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Because Langfuse counts every observation and score while Datadog counts only LLM calls, agents with many tool steps weigh more on Langfuse's meter. Model both with your own traffic using Datadog's pricing and Langfuse's pricing.

§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, not only the final answer, and can act on what it finds through runtime policies, approval holds and a kill switch scoped to a run, an agent or a team. Langfuse evaluates after the fact and documents no run-time blocking. Datadog's module does not block either; it sells that 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, Langfuse or Datadog is the better pick. 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 Datadog if

  • Your services already report to Datadog APM and infrastructure monitoring.
  • You want agent traces linked to the backend calls behind each request.
  • Your agents make many tool calls, and billing only LLM spans suits your traffic.
  • A hosted-only product is acceptable to your compliance review.

Pick Langfuse if

  • You need to self-host, or want an MIT-licensed codebase you can inspect.
  • You want code evaluators running on live traffic inside the platform.
  • A low first paid tier, or no subscription at all, matters most.
  • You do not use Datadog and do not plan to.
§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. Datadog pricingChecked 2026-10-20.
  2. Datadog documentation
  3. Datadog website
  4. Langfuse pricingChecked 2026-10-20.
  5. Langfuse documentation
  6. Langfuse ownership and status
  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 Datadog and Langfuse?
Both trace agents, run experiments, score production traffic and version prompts. Langfuse is open source and free to self-host. Datadog Agent Observability is a hosted, proprietary module of the Datadog platform that links agent traces to APM and infrastructure data.
How does Prefactor compare with Datadog and Langfuse?
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; Datadog does so in part and Langfuse does not. Datadog and Langfuse both include prompt versioning and a playground. Prefactor evaluates how prompts perform in live runs rather than providing a prompt playground or registry.
Can Datadog read traces instrumented for Langfuse?
Datadog's OpenTelemetry documentation says it recognises Langfuse and OpenLLMetry instrumentation sent over OTLP, alongside the OpenTelemetry GenAI conventions and OpenInference. Test on one service first, and allow for Datadog's 3 to 5 minute OTLP ingestion delay.
Can I self-host Datadog Agent Observability instead of Langfuse?
No. Datadog documents only Datadog-hosted sites for Agent Observability as of 20 October 2026. Lapdog runs locally without a Datadog account but is meant for development, not production.
Did the ClickHouse acquisition change Langfuse?
Langfuse announced the ClickHouse acquisition on 16 January 2026 and stated that its roadmap and licence would not change and that self-hosting remains a first-class option. It has continued to release, including code evaluators in May and evaluator backfills in September 2026.
Can I use Datadog and Langfuse together?
Yes. Both accept OpenTelemetry traces, so one instrumentation can feed both, for example Langfuse for prompt work and evaluation and Datadog for production monitoring. You then pay for, or run, two products.
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.
Who owns Langfuse?
As of 20 October 2026: ClickHouse, Inc., which acquired Langfuse in January 2026. Langfuse said its roadmap and licence would not change and that self-hosting stays a first-class option.
Is Langfuse open source?
Yes. The repository is MIT-licensed, apart from add-on features in its ee folders that need a licence key. Self-hosting on Docker or Kubernetes is free.
How much does Langfuse cost?
As of 20 October 2026: Hobby is free with 50k units a month and 30 days of data, and self-hosting is free. Core is $29 a month for 100k units, then $8 per 100k. Pro is $199 a month, and Enterprise is $2,499 a month or custom.
Can Langfuse block or hold a live agent action?
No. Langfuse evaluates runs after they happen. Its documentation says run-time protection comes from separate libraries, and Langfuse scores those measures afterwards.
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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7Instances
5Services
12%Human Intervene
4High Risk
$2,360Monthly Spend
Mission ControlLive agent health with 7-day activity heartbeat
Claims Proc...68
$330/moRed
Claims Proc...65
$160/moRed
Claims Proc...82
$170/moAmber
ChatGPT74
$150/moAmber

See how every agent performs, and make it better

Prefactor helps teams observe, evaluate, and improve their AI agents in production, across every framework and provider.