On-Premises Log Management with AI: A Datadog Alternative

Datadog provides cloud-native observability. For many organizations, cloud-only deployment is not acceptable. Data sovereignty requirements, regulatory constraints, and security policies mandate on-premises log management.

LogZilla offers an alternative for organizations requiring on-premises deployment. Full log management capability with AI-powered analysis, no cloud dependency, and predictable pricing.

Why On-Premises Matters

Organizations require on-premises deployment for various reasons:

Data Sovereignty

• Regulatory requirements (GDPR, data residency laws)
• Government and defense contracts
• Healthcare data protection
• Financial services compliance

Security Requirements

• Air-gapped network requirements
• Zero trust architectures
• Data classification restrictions
• Third-party risk management

Operational Control

• Network latency sensitivity
• Bandwidth cost management
• Infrastructure standardization
• Vendor dependency reduction

Datadog Limitations

Datadog's cloud-only model creates challenges:

No On-Premises Option

• All data sent to Datadog cloud
• No self-hosted deployment
• Cloud dependency for all features
• Data leaves organizational control

Pricing Unpredictability

• Per-host pricing scales with infrastructure
• Per-GB ingestion charges
• Feature-based add-on costs
• Difficult to forecast annual spend

Data Residency

• Limited region options
• Data crosses borders
• Compliance complexity
• Audit challenges

LogZilla Deployment Options

Full On-Premises

All components within organizational boundaries:

text
Wrap: OnCopyFullscreen
[Log Sources] → [LogZilla] → [On-Prem AI]
                    ↓
              [Local Storage]

• No external connectivity required
• Full AI capability with Ollama
• Complete data sovereignty
• Air-gapped deployment supported

Hybrid Deployment

On-premises log management with optional cloud AI:

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Wrap: OnCopyFullscreen
[Log Sources] → [LogZilla On-Prem]
                    ↓
              [Local Storage]
                    ↓
              [Cloud AI API] (optional)

• Data remains on-premises
• AI queries use cloud API
• Flexible based on requirements
• Easy transition between modes

Cloud Deployment

For organizations without on-premises requirements:

• LogZilla hosted deployment
• Managed infrastructure
• Same features as on-premises
• Predictable pricing

Feature Comparison

Cost Comparison

Datadog Pricing Model

Datadog charges multiple dimensions:

Example: 500 hosts, 2 TB/day logs:

Annual cost: ~$390,000

LogZilla Pricing Model

Predictable licensing without per-host or per-GB charges:

Example: Equivalent deployment:

Savings: ~$246,000/year (63%)

AI Capability Comparison

Datadog AI

• Cloud-only processing
• Limited natural language
• Requires data upload
• No air-gapped option

LogZilla AI

• On-premises with Ollama
• Full natural language queries
• Data never leaves network
• Air-gapped deployment supported

Example query: "Analyze all security events from the last hour. Identify threats, map to MITRE ATT&CK, and provide remediation commands."

LogZilla AI processes this query entirely on-premises with no external data transfer.

Migration Considerations

Data Collection

Datadog agents can forward to LogZilla:

• Configure Datadog agent dual-shipping
• Or replace with LogZilla collection
• Validate data completeness
• Parallel operation during transition

Dashboard Migration

• Export Datadog dashboard definitions
• Recreate in LogZilla
• Validate visualizations
• User acceptance testing

Alert Migration

• Document existing Datadog alerts
• Configure equivalent LogZilla alerts
• Validate alert functionality
• Update notification integrations

Use Cases for On-Premises

Government and Defense

• Classified network requirements
• FedRAMP and CMMC compliance
• Data sovereignty mandates
• Air-gapped operations

Healthcare

• HIPAA compliance
• PHI protection
• State privacy laws
• Patient data sovereignty

Financial Services

• Regulatory requirements
• Data residency compliance
• Third-party risk management
• Audit requirements

Critical Infrastructure

• Operational technology isolation
• Air-gapped SCADA networks
• Utility compliance requirements
• Physical security integration

Data Sovereignty Deep Dive

Data sovereignty requirements drive many on-premises decisions. Understanding these requirements helps organizations choose appropriate solutions.

Regulatory Drivers

Government Requirements

Government contracts often include specific data handling requirements:

• ITAR: International Traffic in Arms Regulations prohibit foreign access
• EAR: Export Administration Regulations restrict data transfer
• FISMA: Federal Information Security Management Act requires controls
• StateRAMP: State-level cloud security requirements

On-premises deployment satisfies these requirements without complex cloud authorizations.

Third-Party Risk

Cloud services introduce third-party risk:

• Vendor access to customer data
• Subprocessor data handling
• Cross-border data transfers
• Vendor security incidents

On-premises deployment eliminates these third-party risks entirely.

Datadog Feature Gaps

Organizations migrating from Datadog gain capabilities not available in the cloud platform:

Air-Gapped AI

Datadog AI features require cloud connectivity. LogZilla provides full AI capability in air-gapped environments using Ollama with local models.

Predictable Costs

Datadog's per-host and per-GB pricing creates budget uncertainty:

Full Data Control

With Datadog, data flows through external infrastructure:

• Data in transit to Datadog
• Data at rest in Datadog
• Data processed by Datadog
• Data retained by Datadog

With LogZilla on-premises:

• Data never leaves network
• Full control over retention
• No external processing
• Complete audit trail

Implementation Timeline

Parallel Deployment (4-6 weeks)

1. Week 1: LogZilla deployment
2. Week 2: Configure dual-shipping
3. Week 3-4: Dashboard migration
4. Week 5-6: Validation and cutover

Full Migration (6-8 weeks)

1. Weeks 1-2: LogZilla deployment
2. Weeks 3-4: Log source migration
3. Weeks 5-6: Dashboard and alert migration
4. Weeks 7-8: User training and cutover

Agent Migration Strategy

Organizations using Datadog agents can migrate collection systematically:

Agent Replacement Options

Dual-Shipping Configuration

Configure Datadog agents to forward to both platforms:

1. Install LogZilla collector alongside Datadog agent
2. Configure log forwarding to LogZilla
3. Validate data completeness in both platforms
4. Remove Datadog agent after validation

Native LogZilla Collection

LogZilla supports multiple collection methods:

• Syslog: Direct syslog forwarding from any source
• Agents: Lightweight agents for servers and endpoints
• API: REST API for custom integrations
• Cloud connectors: AWS, Azure, GCP native integration

Metrics Collection

Datadog excels at metrics. For organizations requiring metrics alongside logs:

• LogZilla focuses on log management and AI analysis
• Integrate with Prometheus/Grafana for metrics
• Or maintain Datadog for metrics only (reduced cost)

Hybrid Approach Considerations

Some organizations maintain Datadog for specific use cases while using LogZilla for log management:

This hybrid approach captures the best of both platforms while meeting data sovereignty requirements for sensitive log data.

Micro-FAQ

Why choose LogZilla over Datadog?

LogZilla provides on-premises deployment for data sovereignty, AI capability without cloud dependency, and predictable pricing without per-host or per-GB charges that scale unpredictably.

Can LogZilla match Datadog features?

LogZilla focuses on log management with AI-powered analysis. For organizations primarily needing log management, LogZilla provides superior capability at lower cost with on-premises options.

Does LogZilla support air-gapped deployment?

Yes. LogZilla deploys in fully air-gapped environments with on-premises AI using Ollama. Datadog requires cloud connectivity for all features.

How does LogZilla pricing compare to Datadog?

Datadog charges per host and per GB ingested, leading to unpredictable costs. LogZilla offers predictable licensing without per-host charges or ingestion-based pricing surprises.

Next Steps

Organizations requiring on-premises log management can deploy LogZilla with full AI capability. Data sovereignty, predictable pricing, and air-gapped deployment options address requirements that cloud-only solutions cannot meet.

Download LogZilla vs Datadog comparison (PDF)

Watch AI-powered log analysis demos to see natural language queries in action.