Set up Grafana Alloy for Application Observability
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Set up Grafana Alloy for Application Observability

Grafana Labs recommends using Grafana Alloy, an OpenTelemetry Collector distribution, for production observability. Alloy packages upstream OpenTelemetry Collector components and Prometheus exporters to provide stability, support, and seamless integration with Grafana Application Observability and other Grafana products.

For production, run Alloy on every host to enable seamless correlation between infrastructure and application observability data.

Instrument your applications using the OpenTelemetry (OTLP) with Grafana Alloy Grafana Cloud integration tile. This approach provides all binaries, configuration, and connection parameters needed to set up OpenTelemetry and Application Observability.

If you already run Alloy on each host, see the configure your application section.

Advanced manual setup

For advanced use cases, manually configure the Alloy alloy-config.river configuration file:

river 
otelcol.receiver.otlp "default" {
	// https://grafana.com/docs/alloy/latest/reference/components/otelcol.receiver.otlp/

	// configures the default grpc endpoint "0.0.0.0:4317"
	grpc { }
	// configures the default http/protobuf endpoint "0.0.0.0:4318"
	http { }

	output {
		metrics = [otelcol.processor.resourcedetection.default.input]
		logs    = [otelcol.processor.resourcedetection.default.input]
		traces  = [otelcol.processor.resourcedetection.default.input]
	}
}

otelcol.processor.resourcedetection "default" {
	// https://grafana.com/docs/alloy/latest/reference/components/otelcol.processor.resourcedetection/
	detectors = ["env", "system"] // add "gcp", "ec2", "ecs", "elastic_beanstalk", "eks", "lambda", "azure", "aks", "consul", "heroku"  if you want to use cloud resource detection

	system {
		hostname_sources = ["os"]
	}

	output {
		metrics = [otelcol.processor.transform.drop_unneeded_resource_attributes.input]
		logs    = [otelcol.processor.transform.drop_unneeded_resource_attributes.input]
		traces  = [otelcol.processor.transform.drop_unneeded_resource_attributes.input]
	}
}

otelcol.processor.transform "drop_unneeded_resource_attributes" {
	// https://grafana.com/docs/alloy/latest/reference/components/otelcol.processor.transform/
	error_mode = "ignore"

	trace_statements {
		context    = "resource"
		statements = [
			"delete_key(attributes, \"k8s.pod.start_time\")",
			"delete_key(attributes, \"os.description\")",
			"delete_key(attributes, \"os.type\")",
			"delete_key(attributes, \"process.command_args\")",
			"delete_key(attributes, \"process.executable.path\")",
			"delete_key(attributes, \"process.pid\")",
			"delete_key(attributes, \"process.runtime.description\")",
			"delete_key(attributes, \"process.runtime.name\")",
			"delete_key(attributes, \"process.runtime.version\")",
		]
	}

	metric_statements {
		context    = "resource"
		statements = [
			"delete_key(attributes, \"k8s.pod.start_time\")",
			"delete_key(attributes, \"os.description\")",
			"delete_key(attributes, \"os.type\")",
			"delete_key(attributes, \"process.command_args\")",
			"delete_key(attributes, \"process.executable.path\")",
			"delete_key(attributes, \"process.pid\")",
			"delete_key(attributes, \"process.runtime.description\")",
			"delete_key(attributes, \"process.runtime.name\")",
			"delete_key(attributes, \"process.runtime.version\")",
		]
	}

	log_statements {
		context    = "resource"
		statements = [
			"delete_key(attributes, \"k8s.pod.start_time\")",
			"delete_key(attributes, \"os.description\")",
			"delete_key(attributes, \"os.type\")",
			"delete_key(attributes, \"process.command_args\")",
			"delete_key(attributes, \"process.executable.path\")",
			"delete_key(attributes, \"process.pid\")",
			"delete_key(attributes, \"process.runtime.description\")",
			"delete_key(attributes, \"process.runtime.name\")",
			"delete_key(attributes, \"process.runtime.version\")",
		]
	}

	output {
		metrics = [otelcol.processor.transform.add_resource_attributes_as_metric_attributes.input]
		logs    = [otelcol.processor.batch.default.input]
		traces  = [
			otelcol.processor.batch.default.input,
			otelcol.connector.host_info.default.input,
		]
	}
}

otelcol.connector.host_info "default" {
	// https://grafana.com/docs/alloy/latest/reference/components/otelcol.connector.host_info/
	host_identifiers = ["host.name"]

	output {
		metrics = [otelcol.processor.batch.default.input]
	}
}

otelcol.processor.transform "add_resource_attributes_as_metric_attributes" {
	// https://grafana.com/docs/alloy/latest/reference/components/otelcol.processor.transform/
	error_mode = "ignore"

	metric_statements {
		context    = "datapoint"
		statements = [
			"set(attributes[\"deployment.environment\"], resource.attributes[\"deployment.environment\"])",
			"set(attributes[\"service.version\"], resource.attributes[\"service.version\"])",
		]
	}

	output {
		metrics = [otelcol.processor.batch.default.input]
	}
}

otelcol.processor.batch "default" {
	// https://grafana.com/docs/alloy/latest/reference/components/otelcol.processor.batch/
	output {
		metrics = [otelcol.exporter.otlphttp.grafana_cloud.input]
		logs    = [otelcol.exporter.otlphttp.grafana_cloud.input]
		traces  = [otelcol.exporter.otlphttp.grafana_cloud.input]
	}
}

otelcol.exporter.otlphttp "grafana_cloud" {
	// https://grafana.com/docs/alloy/latest/reference/components/otelcol.exporter.otlphttp/
	client {
		endpoint = env("GRAFANA_CLOUD_OTLP_ENDPOINT")
		auth     = otelcol.auth.basic.grafana_cloud.handler
	}
}

otelcol.auth.basic "grafana_cloud" {
	// https://grafana.com/docs/alloy/latest/reference/components/otelcol.auth.basic/
	username = env("GRAFANA_CLOUD_INSTANCE_ID")
	password = env("GRAFANA_CLOUD_API_KEY")
}

Set the following environment variables in your configuration file:

Environment VariableDescriptionExample
GRAFANA_CLOUD_API_KEYAPI key generated aboveeyJvSomeLongStringJ9fQ==
GRAFANA_CLOUD_OTLP_ENDPOINTOTLP endpoint from Grafana Cloud > OpenTelemetry > Configurehttps://otlp-endpoint-***.grafana.net/otlp
GRAFANA_CLOUD_INSTANCE_IDInstance ID from Grafana Cloud > OpenTelemetry > Configure11111

Run Grafana Alloy

Create the alloy-config.river configuration file, set the required environment variables, and run Grafana Alloy.

Configure your application

Set the following environment variables to configure your application to use Alloy:

ConfigurationOptionsResult
export OTEL_EXPORTER_OTLP_ENDPOINT=<host>http://localhost:4318, remote host addressThe default local host address or a remote host address.
export OTEL_EXPORTER_OTLP_PROTOCOL=<protocol>grpc, http/protobufThe default http/protobuf protocol or grpc.

For example, to use a local Grafana Alloy, set:

shell 
export OTEL_EXPORTER_OTLP_ENDPOINT=http://localhost:4317
export OTEL_EXPORTER_OTLP_PROTOCOL=grpc

Then restart your application.

Resource

Refer to the Alloy otelcol components documentation and specifically the otelcol.exporter.otlp component documentation for more information on configuring Alloy.

Next steps

Observe your services in Application Observability