Overview
Insights Rules enable proactive monitoring of spend and usage data by continuously scanning for unusual patterns, risks, and optimization opportunities. Instead of relying on manual reviews or static dashboards, Insights Rules automate anomaly detection and surface actionable signals as data is updated.
Each Insights Rule defines:
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What to monitor — the metric and data source
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How anomalies are detected — the detection method and thresholds
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Who is notified — the notification channel or group
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How often rule should run — hourly, daily, weekly, or monthly
Once configured and enabled:
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Rules run automatically at a defined frequency
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An Insight is generated when behavior falls outside the expected range
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Insights appear on the Insights page for review, acknowledgment, investigation, and resolution
Insights Rules are designed to:
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Scale across cloud and non‑cloud spend
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Support multiple detection methods to accommodate stable, volatile, seasonal, and structurally changing data patterns.
Concepts
Understanding the following core concepts is essential for configuring and interpreting Insights Rules effectively:
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Anomaly
A data point or pattern that deviates significantly from expected or historical behavior based on the selected detection method. -
Baseline
The expected range of values learned from historical data, against which current values are compared to identify deviations. -
Volatility
The degree of variation in a dataset over time (low, moderate, or high), which influences the choice of detection method. -
Seasonality
Recurring, predictable patterns in the data (for example, month-end billing cycles or annual renewals). -
False positive
An Insight triggered for behavior that appears abnormal but is actually expected or acceptable (for example, Q4 bonus incorrectly flagged as an anomaly). -
Change point
A structural shift in the data that represents a new normal rather than a temporary spike or drop (example, spend increase following a new SaaS contract). -
Cooldown days
Cooldown days define how long the system waits before generating a new Insight for the same condition after one has already been triggered.
How Insights Rules work
Insights Rules follow a consistent lifecycle from configuration to resolution.
1. Rule configuration
An admin defines the rule by selecting:
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Data source — Spend Cube or Cloud Cube
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Metric to monitor
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Detection method
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Dimensions and filters
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Thresholds, severity, and notification settings
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Processing frequency and cooldown period
2. Automated execution
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The rule runs automatically based on the configured schedule and analyzes incoming and historical data.
3. Anomaly evaluation
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The selected detection method compares observed values against the learned baseline or defined thresholds.
4. Insight generation
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If abnormal behavior is detected, an Insight is created and displayed in the Insights page for review.
5. Insight lifecycle management
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Each Insight moves through defined statuses:
New → Acknowledged → Resolved -
Insights can be reopened if additional investigation is required.
Anomaly detection methods
The Insights feature supports multiple detection methods. Each method works differently and is suited for specific types of cost or usage data.
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Method |
Description |
Suitable for |
Why use it |
Limitations |
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Z-Score - Statistical anomaly detection |
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Moving Average - Trend detection |
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Prophet - Seasonal forecasting |
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CUSUM - Change point detection |
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Anomaly detection categories
Insights detects multiple categories of anomalies in your data source and the detection method used depends on your data characteristics. Each category highlights a specific type of deviation.
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Anomaly category |
Description |
Example |
|---|---|---|
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Spend spike or drop |
Sudden increase or decrease in spend compared to the baseline. |
AWS spend increased by 80% yesterday. |
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Usage spike or drop |
Unexpected short-term rise or fall in resource usage. |
S3 usage doubled last week. |
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Forecast deviation |
Actual spend or usage deviates significantly from the forecasted value. |
Actual spend is 45% higher than forecast. |
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Budget overrun |
Spend exceeds the allocated budget threshold. |
Team A reached 90% of the monthly budget by day ten. |
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Zero usage resource |
Resource incurs cost while showing no usage. |
Twenty instances incurred cost but were unused. |
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Tagging violation |
Spend detected on resources with missing or incorrect tags. |
Spend identified on untagged production resources. |
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New vendor detected |
Spend appears from a vendor not present in historical data. |
First recorded spend on Datadog. |
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Seasonality drift |
Data deviates from the normal seasonal pattern. |
Weekday costs suddenly match weekend levels. |
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Change point detected |
Permanent shift in baseline spend or usage rather than a temporary spike. |
Daily network costs double after a new service launch and remain elevated. |
Note: To detect the same anomaly category using different detection methods (for example, Spend Spike using both Z-score and Threshold), create separate rules.
When to use which detection method
Note: Detection methods should be selected only after confirming that the prerequisites for creating Insight Rules are met, including sufficient historical data, consistent data availability, and appropriate metric selection. Using a method that does not align with data readiness may lead to unreliable Insights.
Selecting the appropriate detection method is key to reducing noise and avoiding false positives. The method you choose should align with how your data behaves over time.
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Data behavior |
Recommended detection method |
|---|---|
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Low volatility, stable data |
Z-Score to detect sudden spikes or drops; optionally use CUSUM (Change Point Detection) to identify long-term shifts |
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Moderate volatility with gradual trends |
Moving Average to smooth fluctuations and detect trend changes; optionally complement with CUSUM |
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Strong seasonality |
Prophet to account for recurring weekly, monthly, or quarterly patterns |
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Contract-driven or structural changes |
CUSUM (Change Point Detection) to identify permanent shifts and establish a new baseline |
Next step
Related pages:
Create an Insight Rule | Checklist for creating Insight Rules