As modern applications become more complex with microservices-based architectures, observability is crucial for understanding system health, diagnosing performance issues, and ensuring optimal performance. Two main solutions dominate the observability space: OpenTelemetry and Application Performance Monitoring (APM).
While both strive to enhance observability, they differ in approach, flexibility, and use cases.

What is OpenTelemetry?
OpenTelemetry is an open-source framework that offers standardized APIs, libraries, and agents for collecting telemetry data such as traces, metrics, and logs from applications. It allows developers to instrument their code to generate observability data and export it to different backend systems. OpenTelemetry supports multi-language environments and offers a variety of exporters the ability to integrate with monitoring platforms like Prometheus, Jaeger, Zipkin, Elastic, and others.
What is APM?
Application Performance Monitoring (APM) is a set of tools and services that focus on tracking the performance of applications by monitoring request rates, latency, error rates, and other key performance indicators (KPIs). Popular APM platforms, like Elastic APM, Datadog APM, New Relic, and Dynatrace, provide built-in dashboards, visualizations, and alerting mechanisms to identify bottlenecks and ensure application reliability.
OpenTelemetry vs APM: Key Differences

OpenTelemetry: Pros and Cons
Pros:
- Vendor-Agnostic: OpenTelemetry is designed to be vendor-neutral, allowing you to export data to various platforms. This gives you flexibility and control over how to manage your observability data.
- Unified Telemetry: OpenTelemetry provides a unified standard for traces, metrics, and logs, simplifying the process of correlating data and obtaining a comprehensive view of your application’s performance.
- Open Source: It’s driven by the community, leading to frequent updates and ensuring you’re not locked into a proprietary solution.
- Cross-Language Support: OpenTelemetry is supported across multiple programming languages, such as Java, Python, Go, and Node.js, making it suitable for multi-language systems.
- Customizable Pipelines: You have complete control over the processing, filtering, and exporting of telemetry data.
Cons:
- Setup Complexity: OpenTelemetry requires more manual effort to configure and instrument compared to commercial APM solutions. You need to set up collectors, processors, and exporters.
- No Native UI: OpenTelemetry lacks a built-in user interface but can be integrated with visualization tools like Prometheus, Grafana, or Kibana, adding to the complexity.
- Maturity: OpenTelemetry is rapidly evolving, but it is relatively young compared to well-established APM solutions, and some advanced features and ecosystem maturity are still in development.
APM: Pros and Cons
Pros:
- Quick Deployment: APM tools provide a plug-and-play approach. With minimal setup, you can start collecting and analyzing application data, making it easier for teams that require fast time-to-value.
- Comprehensive Features: APM tools often come with advanced monitoring capabilities, such as distributed tracing, error logging, real-time alerts, and automatic root-cause analysis.
- Built-in Dashboards: They come with pre-built, easy-to-use dashboards that offer rich visualizations of application performance, making it easier to understand bottlenecks.
- Seamless Integration: APM tools typically incorporate infrastructure monitoring, log management, and user interaction tracking to offer a comprehensive solution for full-stack observability.
Cons:
- Vendor Lock-In: APM tools often use proprietary agents and data formats, making it difficult to switch to another tool without a full re-instrumentation of your application.
- Cost: These tools are usually paid services, and their pricing models are based on data volume, which can lead to high costs as your application grows.
- Limited Flexibility: APM solutions are less flexible in terms of custom observability pipelines, requiring reliance on their built-in features and offering limited customization options.
Real-World Example: E-commerce Application with Microservices
Scenario 1: Using OpenTelemetry
Consider an e-commerce application developed using Java, Python, and Node.js microservices. It requires comprehensive observability across the distributed system to track customer journeys through multiple services and analyze application performance.
Steps:
- Instrumentation: Instrument your Java, Python, and Node.js services using OpenTelemetry’s SDKs and agents to collect traces, metrics, and logs.
- Data Collection: Use OpenTelemetry Collectors to gather data from multiple services.
- Exporting to Multiple Backends: Send traces to Elasticsearch or Jaeger, metrics to Elasticsearch or Prometheus, and logs to Elasticsearch for storage and querying.
- Visualization: Use Kibana or Grafana to visualize metrics and traces, and Kibana for log analytics.
Benefits:
- Full control over where and how data is exported and visualized.
- Vendor independence and flexibility in choosing tools for different telemetry types (traces, metrics, and logs) or even sending to the same vendor like Elastic in this case.
- Designed for multilingual environments with intricate observability requirements.
Challenges:
- Requires more initial setup and configuration compared to APM solutions.
- No single UI for all telemetry data; you must configure and manage separate tools.
Scenario 2: Using APM
Now imagine the same e-commerce platform deployed as a monolithic application written in Java, requiring quick out-of-the-box performance monitoring and transaction tracing with minimal configuration.
Steps:
- Install an APM Agent: Install a tool like Elastic APM in your Java application to automatically capture performance data.
- Collect Data: The APM agent will gather transaction data, error rates, and latency metrics automatically.
- Monitor in Real-Time: Use the integrated dashboards to monitor application performance, analyze response times, and configure alerts for critical issues.
Benefits:
- Fast setup with minimal configuration.
- Unified UI for all telemetry data (traces, metrics, and logs) with integrated dashboards.
- Automatic correlation of data and insights, ideal for teams that need real-time observability without extensive configuration.
Challenges:
- Limited flexibility in data export and control over observability pipelines.
- Can be costly, especially as the system scales in complexity or data volume.
When to Use OpenTelemetry
- Need for Flexibility: If you need to customize your observability stack and choose different tools for logs, metrics, and traces, OpenTelemetry is the right choice.
- Polyglot or Distributed Environments: For environments with multiple languages or microservices, OpenTelemetry provides a unified observability framework that functions across various technologies.
- Avoid Vendor Lock-In: If avoiding vendor lock-in is a priority, OpenTelemetry provides the freedom to export data to any platform.
When to Use APM
- Fast Time-to-Value: APM tools are ideal for teams needing instant insights without the burden of manual setup and configuration.
- Monolithic Applications: If your application is simpler (e.g., monolithic) or you don’t require extensive custom observability, APM provides out-of-the-box functionality that’s easy to deploy and use.
- Full-Stack Monitoring: If you want a comprehensive toolset for not only application performance but also infrastructure monitoring and log aggregation, consider using APM platforms.
Conclusion
Both OpenTelemetry and APM are crucial for modern application observability, but they serve different purposes.
OpenTelemetry is great when flexibility, multi-language support, and vendor independence are needed. It is ideal for complex, distributed systems that require full control over telemetry data.
APM solutions are best suited for teams looking for quick deployment, rich out-of-the-box features, and real-time monitoring with minimal setup.
By understanding the strengths and limitations of both approaches, you can choose the right solution that aligns with your application’s architecture, operational needs, and observability goals. Whether you’re building a polyglot microservices platform or a simple monolithic application, both OpenTelemetry and APM can help you achieve better performance, reliability, and insights into your systems.
More Related Articles:
OpenTelemetry with Elastic Observability
Elastic RUM (Real User Monitoring) with Open Telemetry (OTel)
OpenTelemetry: Automatic vs. Manual Instrumentation — Which One Should You Use?
Test and Analyze OpenTelemetry Collector processing
Configuration of the Elastic Distribution of OpenTelemetry Collector (EDOT)
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