Menu
Dev.to #architecture·May 20, 2026

Building a Production-Grade Observability Platform with LGTM Stack and SLOs

This article details the architectural design and implementation of a production-grade observability platform using the open-source LGTM stack (Loki, Grafana, Tempo, Prometheus). It emphasizes integrating DORA metrics, Service Level Indicators (SLIs), Service Level Objectives (SLOs), and error budgets to drive reliability engineering and align technical performance with business outcomes. The post covers data flow, alert rules, and dashboarding strategies for comprehensive monitoring.

Read original on Dev.to #architecture

Architecting a Comprehensive Observability Stack

The article presents a robust, self-hosted observability solution built on the LGTM (Loki, Grafana, Tempo, Prometheus) stack. This architecture prioritizes cost predictability, full control over configurations (version-controlled in Git), composability of best-in-class tools, and leverages a strong community ecosystem. This approach offers significant learning value compared to managed black-box solutions, fostering deeper understanding of underlying systems.

Data Flow Overview

The observability platform is designed with distinct data flows for different telemetry types, orchestrated via Docker Compose for easy management. This modular design ensures that each tool focuses on its core strength while integrating seamlessly:

  • Metrics: Sample applications export Prometheus metrics (counters, histograms, gauges). Prometheus scrapes these, along with node-exporter, blackbox-exporter, and a custom DORA exporter, at regular intervals.
  • Logs: Applications send structured JSON logs to an OpenTelemetry Collector via OTLP, which then forwards them to Loki for indexing by service_name and other labels.
  • Traces: Request spans from instrumented applications are sent to the OpenTelemetry Collector, then exported to Tempo for distributed tracing.
  • Alerts: Prometheus evaluates version-controlled alert rules, which fire to Alertmanager. Alertmanager handles grouping, inhibition, and routing to communication channels like Slack.
💡

Enhanced Observability Feedback Loop

A key architectural detail is Loki's derived field for `trace_id`. This enables one-click navigation from an error log directly to the full distributed trace in Tempo, significantly accelerating incident diagnosis and root cause analysis. This cross-tool linking is critical for efficient observability.

Implementing SLIs, SLOs, and Error Budgets

The core of production-grade reliability is defining and enforcing Service Level Objectives (SLOs) backed by Service Level Indicators (SLIs) and managing an error budget. The article outlines how the Four Golden Signals (Latency, Traffic, Errors, Saturation) are translated into measurable SLIs using PromQL expressions.

  1. Latency: Measures the 95th percentile of successful request latency. SLO target: 95% of successful requests under 500ms.
  2. Traffic: Monitors requests per second, serving as a leading indicator for scaling or anomaly detection.
  3. Errors: Calculates the 5-minute error rate, including 5xx responses, timeouts, and policy violations. SLO target: Error rate < 1% (99% success rate).
  4. Saturation: Tracks resource utilization (CPU, memory, disk, connection pools) with warning and critical thresholds to prevent performance degradation.

The error budget policy defines actions based on consumption rate, preventing feature development when reliability suffers. Fast burn rates trigger immediate incident response, while slow burns prompt reliability sprints. Alert rules in Prometheus are configured for both infrastructure health and SLO burn rates, with Alertmanager providing intelligent routing and inhibition to prevent alert storms.

observabilitymonitoringloggingtracingprometheusgrafanalokitempo

Comments

Loading comments...