Grafana is an open source analytics and monitoring tool that uses InfluxDB to store time series data and provide visualization dashboards. It collects metrics like application and server performance from Telegraf every 10 seconds, stores the data in InfluxDB using the line protocol format, and allows users to build dashboards in Grafana to monitor and get alerts on metrics. An example scenario is using it to collect and display load time metrics from a QA whitelist VM.