How TechCorp Cut Their AWS Bill by $3,200/Month
A complete breakdown of how we reduced a Series A SaaS platform's AWS costs by 41% in 30 days without impacting performance or reliability.
About TechCorp
TechCorp is a Series A SaaS platform serving 10,000+ enterprise customers with their project management solution. Founded in 2020, they've grown from a small startup to a team of 45 employees processing over 2M API requests daily.
Like many fast-growing startups, TechCorp prioritized speed over optimization during their early growth phase. Their AWS infrastructure had grown organically without a clear cost management strategy.
With their Series B fundraising approaching, the executive team wanted to demonstrate strong unit economics and efficient capital allocation to potential investors.
Company Stats
The Challenge: Skyrocketing AWS Costs
"Our AWS bill increased 340% in 18 months, but our user base only grew 180%. Something was seriously wrong with our infrastructure efficiency."
- David Park, CTO at TechCorp
Key Problems Identified:
š„ Over-Provisioned EC2 Instances
- ā¢ 12x t3.large instances running at 15-20% CPU utilization
- ā¢ 4x m5.xlarge database servers barely hitting 25% usage
- ā¢ Auto-scaling groups with minimum capacity set too high
- ā¢ No scheduled scaling for predictable traffic patterns
š¾ Inefficient Storage Configuration
- ā¢ 8TB of gp2 EBS volumes (legacy, expensive storage)
- ā¢ Oversized volumes with 60-70% free space
- ā¢ No lifecycle policies for S3 data archival
- ā¢ Frequent snapshots without automated cleanup
š° No Reserved Instance Strategy
- ā¢ 100% On-Demand pricing for predictable workloads
- ā¢ Missing out on 30-60% savings for stable resources
- ā¢ No Savings Plans utilization
- ā¢ Poor understanding of usage patterns
š Poor Monitoring & Visibility
- ā¢ No cost allocation tags for tracking spend by service
- ā¢ Missing CloudWatch metrics for right-sizing decisions
- ā¢ No alerts for budget overruns
- ā¢ Limited understanding of cost drivers
Our 30-Day Optimization Plan
Week 1: Discovery & Analysis
Complete infrastructure audit and baseline establishment
Actions Taken:
- ā¢ Installed AWS Cost Explorer and detailed billing
- ā¢ Deployed CloudWatch monitoring across all resources
- ā¢ Implemented comprehensive cost allocation tagging
- ā¢ Analyzed 90-day usage patterns and trends
- ā¢ Identified right-sizing opportunities
Key Findings:
- ā¢ 68% of EC2 instances over-provisioned
- ā¢ $1,240/month in potential EC2 rightsizing savings
- ā¢ $890/month savings available from gp2āgp3 migration
- ā¢ $1,070/month Reserved Instance opportunity
Week 2: Quick Wins Implementation
Low-risk optimizations with immediate impact
ā Storage Optimization (Completed)
Migrated 8TB from gp2 to gp3 EBS volumes with optimized IOPS settings
ā S3 Lifecycle Policies (Completed)
Implemented Intelligent Tiering and automated archival to Glacier
ā Unused Resources Cleanup (Completed)
Removed orphaned EBS volumes, unattached elastic IPs, and old snapshots
Week 3: EC2 Right-Sizing
Optimize instance types and implement intelligent scaling
| Instance Type | Before | After | Monthly Savings |
|---|---|---|---|
| Web Servers | 12x t3.large | 8x t3.medium | $640 |
| Database | 4x m5.xlarge | 2x m5.large + Read Replicas | $480 |
| Background Jobs | 6x c5.large | Spot Instances | $320 |
Total EC2 Right-sizing Savings: $1,440/month
Week 4: Reserved Instances & Monitoring
Long-term commitments and ongoing optimization
Reserved Instance Strategy:
- ā¢ Purchased 1-year RI for stable database instances
- ā¢ 3-year RI for predictable web server capacity
- ā¢ Savings Plans for variable compute workloads
- ā¢ Total RI Savings: $760/month
Ongoing Monitoring:
- ā¢ Daily cost alerts and budget notifications
- ā¢ Weekly right-sizing recommendations
- ā¢ Monthly optimization review meetings
- ā¢ Automated scaling based on actual usage
The Results: $3,200 Monthly Savings
Before Optimization
After Optimization
Savings Breakdown
"The ROI was immediate. Kixago paid for itself 4x over in month one. But beyond the cost savings, we finally have visibility into our infrastructure spend and confidence in our scaling strategy."
Key Takeaways for SaaS Startups
šÆ What Worked
- ā Starting with low-risk, high-impact optimizations built trust and momentum
- ā Data-driven decisions using 90-day usage patterns prevented over-optimization
- ā Phased approach allowed for careful monitoring and rollback if needed
- ā Comprehensive tagging strategy enabled ongoing cost visibility
ā ļø Common Pitfalls Avoided
- Ć Aggressive rightsizing without proper monitoring can impact performance
- Ć Reserved Instance purchases without understanding usage patterns
- Ć Optimizing during peak usage periods can cause unnecessary stress
- Ć Making multiple changes simultaneously makes it hard to measure impact
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Ready to Cut Your AWS Bill by 40%?
Get the same results as TechCorp with a free infrastructure audit. We'll identify your biggest cost optimization opportunities in 24 hours.
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Frequently Asked Questions
How quickly can I expect to see cost savings like TechCorp?
Storage optimizations (gp2āgp3) and resource cleanup provide immediate savings within 1-2 weeks. EC2 rightsizing typically takes 2-3 weeks for full implementation. Most clients see 60-80% of total savings within the first month.
Will optimization impact my application performance?
All optimizations are based on 90+ days of actual usage data and implemented with careful monitoring. We use a phased approach with rollback plans, ensuring zero performance degradation. TechCorp actually saw improved performance due to better resource allocation.
What if my AWS setup is different from TechCorp's?
Every infrastructure is unique, but the optimization principles remain consistent. Whether you're using containers, serverless, or traditional EC2, there are always opportunities for cost reduction. The free audit will identify your specific optimization opportunities.
Do you provide ongoing support after optimization?
Yes! Our monthly retainer includes continuous monitoring, optimization recommendations, and infrastructure support. Many clients like TechCorp continue finding additional savings as their usage patterns evolve.