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Mar 18th, ‘25 / 9 min read

OpenTelemetry Backends: A Practical Implementation Guide

Learn how to choose, set up, and optimize an OpenTelemetry backend for better observability, faster troubleshooting, and improved performance.

OpenTelemetry Backends: A Practical Implementation Guide

If you’ve ever found yourself sifting through logs, metrics, and traces without a clear answer to why your app crashed at 2 AM, you’re not alone. Troubleshooting without the right tools can feel like chasing shadows.

That’s where the right OpenTelemetry backend makes all the difference—bringing everything together and turning scattered data into a clear picture.

In this guide, we’ll cover what OpenTelemetry backends are, how they work, and how to pick one that fits your stack—practical insights, no unnecessary jargon.

Understanding OpenTelemetry Backends:

OpenTelemetry backends are where all your observability data lands after collection. Consider OpenTelemetry as the standard for gathering data, while backends serve as the place where you store, process, and analyze it.

Last9 stands out as one of the most robust options in the OpenTelemetry backend space. Their platform is built specifically for handling high-volume telemetry data with impressive query speeds – perfect when you're trying to pinpoint that one weird error in a sea of logs.

With custom retention policies and advanced correlation features, Last9 gives you both the big picture and granular details when you need them.

The beauty of these backends? They turn raw signals (traces, metrics, logs) into something you can use to fix problems before your Slack channels blow up with alerts. The right backend connects dots across your entire stack, showing you not just what broke, but why it broke.

💡
If you're setting up an OpenTelemetry backend, understanding how OpenTelemetry agents work can help you collect and send data efficiently. Read more.

Benefits of OpenTelemetry Backends for DevOps Teams

The truth is, you're not implementing observability for fun. You need concrete benefits:

  • Vendor independence – Switch providers without rewriting your instrumentation code. This saved one team I know three months of work when they needed to change vendors due to pricing changes.
  • Cost management – Send different signals to different backends based on price and features. One e-commerce platform reduced its observability costs by 40% by routing high-volume, low-value metrics to cheaper storage.
  • Faster troubleshooting – Connect traces to logs to metrics in one view. When every minute of downtime costs thousands, this matters.
  • Seamless scaling – Handle growing data volumes as your systems expand. One streaming service went from 100 to 3,000 services without changing its observability architecture.

A Comparison of Top OpenTelemetry Backend Solutions

Let's break down your options – starting with the standouts:

Commercial OpenTelemetry Backend Platforms:

Provider Core Strengths Data Retention Pricing Model Integration Ecosystem Ideal For
Last9 Purpose-built for microservices, handles 100TB+ daily with minimal overhead, advanced dependency mapping Configurable from 7 days to 2 years with tiered storage Usage-based with predictable caps 50+ out-of-box integrations, custom SDK Teams wanting unified observability without increasing the budgets, High-scale distributed systems with complex service dependencies
Datadog Rich dashboards with machine learning analysis, APM features 15-month standard, custom options available Per host/container with data volume factors Extensive plugin system, 450+ integrations Teams wanting unified observability with comprehensive dashboards
New Relic Strong user experience monitoring, full-stack visibility 13 months standard User-based with data throughput tiers 300+ integrations, auto-instrumentation Customer-facing applications requiring UX insights
Dynatrace Advanced causation analysis, auto-discovery Custom retention policies Per unit pricing with infrastructure monitoring 200+ extensions, proprietary OneAgent Large enterprise environments with diverse tech stacks
Honeycomb Excellent for high-cardinality data, BubbleUp feature 60 days standard, up to 2 years Event-based pricing Limited integrations, strong API Complex debugging scenarios with high-dimension data
💡
Aggregating metrics effectively is key to making sense of your OpenTelemetry data. Learn how it works here.

Self-Hosted OpenTelemetry Backend Options

If you prefer keeping things in-house:

Solution Technical Specifications Storage Requirements Query Capabilities Scaling Characteristics Best Fit Scenarios
Jaeger Go-based, Cassandra/Elasticsearch backend ~1GB per 1M spans with sampling TraceQL for complex filtering Horizontally scalable with separate components Tracing-focused teams needing visualization
Prometheus GoLang time-series DB, pull-based ~1.3 bytes per sample, ~9MB RAM per million active time series PromQL with rich function library Vertical scaling with federation for horizontal Kubernetes environments requiring native integration
Grafana Tempo Trace-backend built for Grafana Object storage (S3/GCS) for cost efficiency TraceQL and Tempo query language Microservices architecture, horizontally scalable Teams already invested in Grafana ecosystem
SigNoz ClickHouse-based observability platform 600MB-1.2GB per million spans SQL-based with custom functions Mid-scale horizontal with careful tuning Smaller teams with tight budgets needing all-in-one solution

How to Choose the Right OpenTelemetry Backend

Picking a backend isn’t about chasing trends. It’s about finding what truly fits your needs:

Comprehensive Assessment of Your Observability Use Cases

Ask yourself these detailed questions:

  • Signal prioritization: Which telemetry signals are most critical for your services? (Traces for API services, metrics for batch jobs, logs for audit trails)
  • Alert strategy complexity: Do you need simple threshold alerts or anomaly detection?
  • Historical analysis requirements: How far back do you typically need to search during incidents?
  • Cross-team visibility needs: Who beyond DevOps needs access to the data? (Product teams? Customer support?)
  • Compliance requirements: Any regulatory needs for data retention or access controls?

Technical Requirements Specification for Backend Selection

  • Peak data volume handling: Can it handle your busiest days without sampling? Calculate your peak volumes:
    • Traces: ~0.5KB per span × spans per request × peak requests
    • Metrics: ~40 bytes per data point × metrics × collection frequency
    • Logs: Average log size × log frequency × number of services
  • Granular retention policies: Can you set different retention periods for different signal types or services?
  • Query performance at scale: How does query performance degrade as data volumes grow? Some solutions that work well at small scale become painfully slow at larger volumes.
  • Integration ecosystem maturity: Beyond basic integrations, how deep do the connections go with your critical tools?
💡
Seeing your telemetry data in a clear, actionable way makes all the difference. Learn how to set up OpenTelemetry visualization here.

Team and Organizational Considerations for Long-term Success

  • Operational model fit: Self-hosted or SaaS? Be honest about your team's capacity and interest in maintaining infrastructure.
  • Learning curve assessment: Interface complexity vs. your team's expertise. Some powerful tools require significant training.
  • Support quality evaluation: Test support channels before committing. How quickly do they respond to technical questions?
  • Total cost calculation: Beyond the sticker price, factor in operational costs and engineering time.

How to Set Up Your OpenTelemetry Backend, Step by Step

Getting started is straightforward but requires attention to detail:

Step 1: Deploying and Configuring the OpenTelemetry Collector

The collector is the gateway for your telemetry data. Here's a production-ready config with processing pipelines:

receivers:
  otlp:
    protocols:
      grpc:
        endpoint: 0.0.0.0:4317
      http:
        endpoint: 0.0.0.0:4318
  # Additional receivers for existing metrics
  prometheus:
    config:
      scrape_configs:
        - job_name: 'prometheus'
          scrape_interval: 15s
          static_configs:
            - targets: ['localhost:9090']

processors:
  batch:
    timeout: 1s
    send_batch_size: 1024
  # Add resource attributes to all telemetry
  resource:
    attributes:
      - key: environment
        value: production
      - key: deployment.region
        value: us-west-2
  # Filter out high-volume, low-value data
  filter:
    metrics:
      include:
        match_type: regexp
        metric_names:
          - .*error.*
          - .*latency
          - .*request_count

exporters:
  otlp/last9:
    endpoint: your-last9-endpoint:4317
    tls:
      insecure: false
      cert_file: /certs/client.crt
      key_file: /certs/client.key
  # Backup exporter for critical metrics
  prometheus:
    endpoint: 0.0.0.0:8889

service:
  pipelines:
    traces:
      receivers: [otlp]
      processors: [batch, resource]
      exporters: [otlp/last9]
    metrics:
      receivers: [otlp, prometheus]
      processors: [batch, resource, filter]
      exporters: [otlp/last9, prometheus]
    logs:
      receivers: [otlp]
      processors: [batch, resource]
      exporters: [otlp/last9]

For high-availability production environments, run the collector as a Kubernetes DaemonSet with these resource settings:

resources:
  limits:
    cpu: 500m
    memory: 2Gi
  requests:
    cpu: 200m
    memory: 400Mi

Step 2: Implement Instrumentation Across Your Services

Auto-instrumentation is your friend here. For example, in a Java app:

// Create and configure the OpenTelemetry SDK
SdkTracerProvider sdkTracerProvider = SdkTracerProvider.builder()
    .addSpanProcessor(BatchSpanProcessor.builder(
        OtlpGrpcSpanExporter.builder()
            .setEndpoint("http://collector:4317")
            .build())
        .build())
    .build();

SdkMeterProvider sdkMeterProvider = SdkMeterProvider.builder()
    .registerMetricReader(PeriodicMetricReader.builder(
        OtlpGrpcMetricExporter.builder()
            .setEndpoint("http://collector:4317")
            .build())
        .build())
    .build();

// Initialize the SDK
OpenTelemetrySdk sdk = OpenTelemetrySdk.builder()
    .setTracerProvider(sdkTracerProvider)
    .setMeterProvider(sdkMeterProvider)
    .setPropagators(ContextPropagators.create(W3CTraceContextPropagator.getInstance()))
    .buildAndRegisterGlobal();

// Get a tracer from the SDK
Tracer tracer = sdk.getTracer("com.yourcompany.app");

// Use the tracer in your code
Span span = tracer.spanBuilder("processRequest").startSpan();
try (Scope scope = span.makeCurrent()) {
    // Your code here
} catch (Exception e) {
    span.recordException(e);
    span.setStatus(StatusCode.ERROR);
    throw e;
} finally {
    span.end();
}

For Python services:

from opentelemetry import trace
from opentelemetry.exporter.otlp.proto.grpc.trace_exporter import OTLPSpanExporter
from opentelemetry.sdk.resources import SERVICE_NAME, Resource
from opentelemetry.sdk.trace import TracerProvider
from opentelemetry.sdk.trace.export import BatchSpanProcessor

# Configure the tracer provider
resource = Resource(attributes={
    SERVICE_NAME: "payment-service"
})

# Set up the provider
tracer_provider = TracerProvider(resource=resource)
tracer_provider.add_span_processor(
    BatchSpanProcessor(
        OTLPSpanExporter(endpoint="http://collector:4317")
    )
)

# Set the global tracer provider
trace.set_tracer_provider(tracer_provider)

# Get a tracer
tracer = trace.get_tracer(__name__)

# Use the tracer
with tracer.start_as_current_span("process_payment") as span:
    span.set_attribute("payment.amount", 100.50)
    span.set_attribute("payment.currency", "USD")
    # Your payment processing code

Step 3: Implement Strategic Data Sampling for Cost-Effective Telemetry

You can't afford to store everything. Smart sampling strategies help:

Tail-based sampling: Sample after seeing complete traces (catches errors but is more expensive)

processors:
  tail_sampling:
    decision_wait: 10s
    num_traces: 100
    expected_new_traces_per_sec: 10
    policies:
      - name: error-policy
        type: status_code
        status_code: {status: ERROR}
      - name: slow-policy
        type: latency
        latency: {threshold_ms: 1000}

Head-based sampling: Sample at collection time (cheaper but might miss errors)

processors:
  probabilistic_sampler:
    hash_seed: 22
    sampling_percentage: 15

Last9 doesn’t do any sampling, ensuring you have complete control over your data. Unlike traditional sampling methods that filter out valuable insights, Last9 captures everything—so you get the full picture, not just a curated snapshot.

💡
If you're using Last9 as a backend, our documentation walks you through the setup process step by step.

Advanced OpenTelemetry Backend Optimization Techniques

Once you're up and running, here's how to get more value:

Implement Cross-Signal Correlation for Faster Troubleshooting

The real magic happens when you can connect dots across signals. Use a common set of attributes across all telemetry types:

// Add consistent attributes to both spans and metrics
Attributes commonAttributes = Attributes.builder()
    .put("service.version", "1.2.3")
    .put("deployment.id", "abc123")
    .put("customer.tier", "premium")
    .build();

// Use on spans
span.setAllAttributes(commonAttributes);

// Use on metrics
counter.add(1, commonAttributes);

This lets you jump from a user-reported issue to the exact trace, then to the relevant logs, and finally to the metrics showing the system state. With Last9, you can use their unified query language that works across all signal types:

# Find all traces where the user experienced an error
service.name = "checkout-api" AND http.status_code >= 500

# Then pivot to metrics around that time
FROM metrics SELECT AVG(system.cpu.usage) WHERE service.name = "checkout-api" 
TIMESHIFT AROUND trace_id=4bf92f3577b34da6a3ce929d0e0e4736 WINDOW 5m

Create Business-Relevant Custom Dashboards

Create views that match your workflows:

Error Budgets: Track how much room you have for issues

// Monthly error budget consumption
current_errors = count_over_time(error_rate[30d])
budget_used_percentage = 100 * (current_errors / allowed_errors)

User Journey Maps: Follow specific user paths through your system

// Track conversion through a purchase funnel
FROM spans WHERE service.name IN ("product-view", "cart", "checkout", "payment")
GROUP BY user_id
ORDER BY start_time

SLO Tracking Dashboards: Monitor your reliability targets

// Error budget calculation
error_budget = 100 * (1 - (errors / total_requests))
💡
Scaling your OpenTelemetry Collector efficiently can make a big difference in performance. Our guide covers key strategies to handle growing telemetry data without bottlenecks.

Optimizing Your OpenTelemetry Collector for Peak Performance

Fine-tune your collector for optimal performance:

Network Bandwidth Control: Implement rate limiting for predictable network usage

processors:
  rate_limiting:
    spans_per_second: 2000

CPU Optimization: Configure exporters with appropriate concurrent connections

exporters:
  otlp:
    endpoint: collector:4317
    sending_queue:
      enabled: true
      num_consumers: 10
      queue_size: 5000

Memory Management: Adjust batch size based on available memory

processors:
  batch:
    send_batch_size: 8192  # Increase for high-volume, high-memory environments
    timeout: 5s

Common Implementation Pitfalls and How to Avoid Them

Watch out for these traps:

  • Over-instrumentation overload: Start focused on critical paths, then expand. One team tried instrumenting everything at once and crashed their production system with the telemetry load.
  • Ignoring context propagation: Make sure trace context flows through your entire system, including message queues and batch jobs. Without this, you get fragmented traces that tell half the story.
  • Inadequate security planning: Don't overlook encryption, access controls, and PII scrubbing. One healthcare company had to redo its entire implementation after finding PHI in its traces.
  • Missing data governance strategy: Decide what to keep and for how long based on value and compliance needs. Create a tiered storage approach for hot, warm, and cold telemetry data.
  • Poor sampling strategy: Bad sampling can miss critical errors. One team sampled at 10% and missed a critical payment bug that only happened in 5% of transactions.
💡
Understanding how OpenTelemetry processors work can help you fine-tune your observability pipeline. Check out our guide to see how they modify, filter, and enrich your telemetry data.

Planning for Future OpenTelemetry Backend Scalability

As your system grows, your observability needs will evolve:

Automated retention management: Script policies to keep high-value data longer:

def adjust_retention(data_category, error_rate):
    if error_rate > threshold:
        # Increase retention for troubleshooting
        set_retention_policy(data_category, "90d")
    else:
        # Normal retention
        set_retention_policy(data_category, "30d")

Dynamically adjustable sampling: Implement rules that increase sampling during incidents:

processors:
  tail_sampling:
    policies:
      - name: error-policy
        type: status_code
        status_code: {status: ERROR}
        sampling_percentage: 100
      - name: normal-traffic
        type: always_sample
        sampling_percentage: 5

Hierarchical collector deployment: Use a collector-per-service model feeding into regional aggregators:

Service Collectors → Regional Aggregators → Global Backend

Conclusion

Picking and setting up the right OpenTelemetry backend isn't just a technical decision – it's a strategic one that affects how your entire team operates. With Last9 you get options that scale with you, no matter the complexity.

The best backend is the one that fits your needs, not just what’s trending. Take the time to evaluate based on real use cases, and you’ll build an observability system that helps when production is on fire.

We'd love to show you how Last9 can make your observability simpler! Book some time with us or try it for free!

💡
Join our Discord community and be part of the conversation. Connect with other developers, share your use case, and learn from their experiences.

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Authors
Prathamesh Sonpatki

Prathamesh Sonpatki

Prathamesh works as an evangelist at Last9, runs SRE stories - where SRE and DevOps folks share their stories, and maintains o11y.wiki - a glossary of all terms related to observability.

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