
Grafana Alloy
OpenTelemetry Collector distribution with programmable pipelines
The Lens
By Erik Loyd, SaaS CEO and former COO/CFO of an AWS Premier Partner.
Updated Sep 2026
Alloy is the agent you install on servers or Kubernetes to collect metrics, logs, traces, and profiles and ship them to whatever backend you use. It is Grafana Labs' distribution of the OpenTelemetry Collector with Prometheus pipelines built in. Apache 2.0 and free, with no paid edition. Anyone still running Grafana Agent or Promtail is headed here: both hit end of life, and Grafana points everyone to Alloy.
It runs as a systemd service, a Windows service, or a Kubernetes DaemonSet, on Linux, Windows, macOS, and FreeBSD. Config is Alloy's own syntax, not YAML, which is the real learning cost. Grafana's sizing rule is roughly 0.4 CPU cores and 11 GiB of memory per million active series. Set a storage path or buffered data disappears on restart. Minor releases land every three weeks, and they do ship breaking changes.
Free at every team size. The cost is the backend: self-hosted Prometheus and Loki, or Grafana Cloud, which has a free tier and then Pro from $19/mo plus usage. Fleet Management, the remote config for many collectors, is a Grafana Cloud feature. For something vendor-neutral, run the upstream open-telemetry/opentelemetry-collector or vectordotdev/vector.
The catch: it reports anonymous usage stats by default until you pass --disable-reporting. And the engine that accepts stock Collector YAML is marked experimental, so a straight OpenTelemetry config is not a safe path yet.
Free vs Self-Hosted vs Paid
fully freeFree: Everything in Alloy. Apache 2.0 collector with more than 120 components, a built-in debugging UI, clustering, and migration guides from Grafana Agent, Promtail, Prometheus, and the OpenTelemetry Collector.
Self-hosted: The way it runs. A single Go binary per host or a DaemonSet on Kubernetes. Budget memory by series count and set a storage path so buffers survive restarts. It needs a backend: Prometheus, Loki, Tempo, or any OpenTelemetry-compatible destination.
Paid: No paid Alloy. The commercial tie-in is Grafana Cloud as the destination: Free is $0 with 10k active series, 50 GB ingested, and 14 days retention. Pro is from $19/mo plus usage, with metrics starting at $6.50 per 1k series. Enterprise starts at a $25,000 per year spend commit. Fleet Management for remote collector config is a Grafana Cloud feature.
Completely free and open source. The bill shows up at the backend, whether that is your own Prometheus and Loki or Grafana Cloud from $19/mo plus usage.
What to do by team size
- Solo
- free
- Small team
- free; Grafana Cloud's free tier works as the backend
- Medium team
- free; budget memory per million series and plan for breaking changes every few releases
- Large team
- free; the spend is the backend and whoever manages collector config across the fleet
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License: Apache License 2.0
Use freely. Patent grant included.
Commercial use: ✓ Yes
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