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Loki indexes only labels, not log content, which cuts storage costs dramatically compared to Elasticsearch. The main production risk is cardinality explosion each unique label-value combination generates a stream that inflates the index and slows queries. Separating read and write paths ensures a heavy query cannot saturate ingestion.
Migrating from monolith to microservices means splitting a single system into independent services that deploy and scale on their own. It gains granular scalability and team autonomy, but adds real operational complexity: stable interfaces, Kubernetes orchestration, and a mature DevOps culture are conditions, not optional extras, for the migration to pay off.
Choose modular architecture when your team has fewer than ten people and ships the system as a single unit; choose microservices when separate teams need to deploy independently or when specific components require very different scaling, in exchange for higher operational complexity.
