OpenTelemetry Licensing

OpenTelemetry Licensing

The OpenTelemetry (OTel) Service license usage applies when traces are stored and indexed in AppLogs. The cost is tied to trace storage, rather than the number of OTel services or monitors created.

Suppose you have purchased 100GB of log storage. If you store traces from these OTel services, the storage will consume space from your 100GB log allocation. Related to traces are spans, that represents a unit of work or an operation in OTel.

Here are a few scenarios that show how OpenTelemetry services and trace storage affect licensing:

Sl.no
Scenario
Description
Licensing Impact
1
Multiple OpenTelemetry services
Several services send traces (for example, Auth, Payment, Order).

The traces you store in AppLogs are billed.

2
High traffic, many spans
More requests create more spans, which implies more trace data gets stored and billed in AppLogs.

For example, if your service handles 100 requests per minute, and each request generates five spans, that’s 500 spans per minute. Assuming each span is 2KB, the total trace volume is: 500 spans × 2KB/span = 1000KB/min (≈ 1MB/min)
The license usage will be 1MB per minute in AppLogs. Adding more services does not increase license costs.
3
No traces stored
No trace generated
No traces stored implies no cost. 
4
Mixed:
APM + OTel service
Service A uses APM Insight;
Service B uses OpenTelemetry.
Service A consumes an APM license, while Service B only contributes to license usage based on the spans it stores.
5
Many services, low volume
Consider 10 microservices that send a few spans each.
The licensing depends only on the total number of stored spans, not the number of services.
6
OTel metrics only
OpenTelemetry metrics sent without trace data.
The license depends on the total metrics stored.


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