I'd like to see this as well.
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I'm one of the co-founders of Papertrail. While I don't have a standalone document which just addresses this, I can distill the differences well enough that any situation will be a better fit for one than for the other. Namely:
- LEM is installed, licensed software while Papertrail is entirely hosted (SaaS)
- LEM focuses on security and compliance, while Papertrail focuses on operational problems (typically to help developers, sysadmins, and devops practitioners see into their production apps)
While the differences go way beyond that, those two factors will almost certainly make one a better fit for a given situation. Let me know if I can help decide, too, or assist with an existing deployment.
This is old hat to you, but for anyone else: both LEM and Papertrail are free to experiment with (and in Papertrail's case, use at small volumes). Download a free trial of LEM on http://www.solarwinds.com/downloads/#lemCategory and/or create a free Papertrail account on https://papertrailapp.com/.