A few years ago, while I started leading a startup, the code that was built by the previous developers was deeply coupled. Code like this is hard to break into microservices. Due to the poor infrastructure, AWS was billing us 10k USD per month. Which was 5 times more than our MRR.

We had to quickly come up with a solution that would reduce the cost of servers for our clients. In today's blog, we talk about how we fixed this for our clients.

Optimizing costs without compromising efficiency is a perpetual challenge for businesses. I had the opportunity to consult with a startup that was grappling with a substantial AWS bill of $10,000 per month. The root cause lay in their reliance on a monolithic architecture that lacked scalability and incurred hefty expenses.

Plus as mentioned above the code was tightly coupled. This means building or changing a new or existing feature causes the other features to break. Through a series of strategic decisions and architectural shifts, we managed to slash their costs to a mere $2,000 per month while significantly enhancing their system’s performance and scalability.

The Initial Challenge: Monolithic Model and High Costs

The startup’s architecture was centered around a monolithic model, a traditional approach that consolidated all functionalities into a single unit. While this setup might be easier to develop initially, it becomes increasingly complex and expensive to scale as the application grows.

The first step was transitioning from the monolithic architecture to a horizontal scaling model.

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We could have directly jumped into building micro-services. But given the time we had this was the only solution we had to make sure that users keep using the tool seamlessly.

This shift aimed to distribute the workload across multiple instances, allowing for more flexibility and accommodating increased demand. However, while horizontal scaling helped improve performance, it didn’t resolve the cost issue.

Identifying the Solution: Embracing Serverless Architecture

To address the persistent cost challenge, we needed a paradigm shift. The solution lies in embracing serverless architecture. This model eliminates the need for provisioning and managing servers, allowing resources to be allocated dynamically based on actual usage. This move was pivotal in reducing the infrastructure overhead.

The Transition to Serverless: A Strategic Move

We were using aws at that time. So we had aws lambda as the serverless service.

The transition to serverless architecture necessitated a meticulous approach. We meticulously dissected the monolithic structure into microservices, each handling a specific function or task. This decomposition allowed for more precise resource allocation and better optimization.

One key aspect was identifying a pivotal service that, when moved to a serverless model, would trigger substantial savings. After thorough analysis, we strategically migrated the entire architecture to serverless, starting with a service that had the highest impact on cost reduction.

Advantages of Serverless Architecture

Cost-Efficiency: A Major Win

The foremost advantage of serverless architecture is its cost-efficiency. By shifting from fixed infrastructure costs to a pay-as-you-go model, businesses can significantly reduce expenses, paying only for the resources consumed. This was evident in our case, where the startup witnessed an 80% reduction in its monthly AWS bill.

Scalability and Flexibility

Serverless architecture offers unparalleled scalability. With auto-scaling capabilities, resources are automatically provisioned based on demand, ensuring optimal performance during peak loads without incurring unnecessary costs during periods of low activity.

Reduced Operational Burden

By offloading server management to the cloud provider, serverless architectures alleviate the operational burden on development teams. This allows engineers to focus on core business functionalities rather than worrying about infrastructure maintenance.

Challenges and Considerations

Cold Start and Performance

Serverless functions might experience a delay, known as a “cold start,” when triggered for the first time or after a period of inactivity. This can impact real-time applications requiring immediate responses.

Vendor Lock-in

Adopting a serverless approach ties businesses closely to a specific cloud provider. Migrating away from a provider can be challenging due to vendor-specific integrations and services.

Monitoring and Debugging

Debugging serverless applications can be complex due to the distributed nature of microservices. Implementing robust monitoring and logging mechanisms is crucial for effective troubleshooting.

The journey from a monolithic architecture to serverless proved to be a game-changer for the startup. By embracing the agility and efficiency of serverless, they not only slashed their operational costs but also unlocked new levels of scalability and performance. However, while serverless architecture offers compelling benefits, businesses must weigh these advantages against potential challenges and consider their specific use case before making the transition.

At Rudvar, we help startups in building their Software products and helping them build scalable products. If you think there’s a match between your requirements and our services then feel free to get in touch with us at
abhi@surgestartup.com or DM us at https://www.linkedin.com/in/abhishekpatnaik77/

Sometimes startups do commit these kinds of mistakes, that shouldn't be there in the first place. But believe me, that's a common thing to happen in a new startup. Startups are always limited with time, so they take shortcuts. But these startups lead to a disaster in the future.

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