Tempo has the ability to compress traces that it pushes into the backend. This requires a bit extra memory and cpu but seriously reduces the amount of stored data. Anecdotal tests suggest that zstd will cut your storage costs to ~15% of the uncompressed amount. It is highly recommended to use the default zstd.
Compression is configured under storage like so:
storage: trace: block: encoding: zstd
The following options are supported:
It is important to note that although all of these compression formats are supported in Tempo, at Grafana we use zstd and it’s possible/probable that the other compression algorithms may have issue at scale. Please file an issue if you stumble upon any problems!