How we optimized the hell out of clouds to reduce costs by $3M a year
Case Study: Reducing Cloud Costs for a Rapidly-Growing Startup
A rapidly-growing startup sought our help to manage their surging cloud costs due to unexpected traffic growth during the COVID-19 pandemic. Our comprehensive optimization efforts resulted in a substantial seven-figure reduction in cloud costs, surpassing even their highest-earning client at the time.
The Challenge:
Reducing cloud costs to accelerate growth.
Our Approach:
Leveraging our extensive experience with cloud cost optimization, we began with immediate gains through initial strategies and then delved deeper for more significant savings.
We partnered with a reliable cloud services provider offering analytics, dashboards, reports, notifications, and optimization recommendations. This initial phase focused on easy wins, securing about $30k/year in savings.
Once the automated suggestions were implemented, our expertise took over, adding substantial value.
Here are some key optimizations we performed that went beyond automated recommendations:
Additional Cleanup
By manually reviewing all resources, we identified and eliminated unnecessary expenses, saving an additional $150k/year.
Region Optimization
We discovered that some workloads were running in a more expensive region due to initial setup choices. By relocating these workloads to cheaper regions, we achieved further cost reductions.
Spot Nodes in Production
We implemented spot nodes for production loads, ensuring 99.99% uptime. This move saved approximately $1,000 per day, or $360k/year. The header image shows a screenshot of these savings.
Custom Cloud Agreements
Beyond reserved instances and automated discount plans, we negotiated a custom contract, securing an additional $240k/year in savings.
Dynamic Scaling
We dynamically scaled down clusters during low usage periods, resulting in $100k/year in savings.
Project Shutdown
We identified an old, forgotten project used by one free customer, costing $100k/year. After due process, we shut down this project to realize these savings.
Upgrading RDS Instances
Upgrading to m6g instances and committing to 3-year reserved instances saved $120k/year.
Secret Optimization Flag
Utilizing a lesser-known optimization flag, we reduced costs by $360k/year for selected workloads.
Initial Results
Through these maneuvers, we achieved approximately $1.5M in annual savings within the first year.
Continued Success
Encouraged by our initial success, we continued to explore and uncover further opportunities, culminating in $3M in annual savings. These savings enabled the company to reinvest in their business, hire new talent, and develop new products, significantly enhancing their growth potential.
How We Can Help You
We have the insights, tools, and partnerships to bring similar value to other clients. We are reaching out to existing and new clients to explore further engagements for mutual benefit. If you would like us to evaluate your infrastructure and identify cost-reduction opportunities, do click here to contact us.
