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My interpretation is that Thanos is for massive scale, perhaps suitable for gitlab but most organisations would manage with just prometheus to start with and might scale up to thanos later.

Is this a correct observation?

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Either that or just use basic Thanos setup (as described in a blog post) that gives you better Prometheus HA support and global view. You can always add setup for long-term metric retention later on.

Yes, a single Prometheus server can probably handle the scale of most SaaS applications.

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