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title: The hidden cost of observability sprawl | daily.dev
description: Platform teams scaling Kubernetes often resort to duplicating full observability stacks per tenant, leading to unsustainable costs and operational overhead. A...
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# The hidden cost of observability sprawl

**[Red Hat Developer](https://daily.dev/sources/rhdev)** · 8 min read · 0 upvotes · 0 comments

## Summary

Platform teams scaling Kubernetes often resort to duplicating full observability stacks per tenant, leading to unsustainable costs and operational overhead. A smarter approach uses the OpenTelemetry Collector as a centralized routing layer combined with Kiali's multi-tenancy capabilities on OpenShift Service Mesh. Two tenancy models are covered: soft tenancy (shared backends with namespace-based attribute separation via Istio Telemetry CRs) and hard tenancy (dedicated backend stores per tenant). Both approaches use Kiali's discovery_selectors and Kubernetes RBAC to enforce namespace isolation. Detailed YAML configurations are provided for Kiali CRs, Istio extensionProviders, Telemetry CRs, and RBAC ClusterRoles/ClusterRoleBindings, enabling teams to route traces and metrics to different backends (Tempo, Prometheus, Loki) without duplicating the entire mesh infrastructure.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://developers.redhat.com/articles/2026/07/24/multi-tenancy-with-kiali-and-opentelemetry-collector>

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---

Tags: [#observability](https://daily.dev/tags/observability), [#opentelemetry](https://daily.dev/tags/opentelemetry), [#service-mesh](https://daily.dev/tags/service-mesh), [#multi-tenancy](https://daily.dev/tags/multi-tenancy)

[View this post on daily.dev](https://daily.dev/posts/the-hidden-cost-of-observability-sprawl-wymqgvwwx)

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