Simor
How we reduced cloud data spend 40% without cutting features

How we reduced cloud data spend 40% without cutting features

Simor Consulting | 06 Oct, 2026 | 06 Mins read

A media analytics company running its entire data platform on AWS was spending $480,000 per month on cloud infrastructure. The bill had grown organically over three years as the platform expanded from a single Redshift cluster to a complex architecture spanning Redshift, S3, EMR, Kinesis, Lambda, and SageMaker. Each component had been added to solve a specific problem. Nobody had stepped back to evaluate the architecture as a whole.

The CFO issued a mandate: reduce the data platform spend by thirty percent without reducing the data products that the company delivered to its customers. The data team pushed back. Every component was in use. Every pipeline was serving production traffic. Removing anything would break something. The CFO was unmoved. The spend was growing faster than revenue, and the ratio was unsustainable.

We were brought in to find the waste. Not the features to cut: the architecture that was costing more than the value it produced.

The Billing Audit

The first step was decomposing the $480,000 monthly bill into its components and mapping each component to the business value it produced.

Redshift accounted for $186,000: thirty-nine percent of the bill. The company ran four clusters: a production cluster for customer-facing queries, a staging cluster for development, an analytics cluster for internal reporting, and a machine learning cluster for model training data preparation. The production cluster was appropriately sized. The staging cluster was running twenty-four hours a day despite only being used during business hours, a $28,000 monthly waste. The analytics cluster was oversized by approximately sixty percent based on actual query patterns. The ML cluster was used for three batch jobs per day that collectively ran for four hours, but the cluster was provisioned for peak capacity and sat idle for the remaining twenty hours.

EMR accounted for $94,000: twenty percent of the bill. The company ran twelve persistent EMR clusters for various Spark jobs. Nine of the twelve clusters were running continuously. Analysis of job schedules showed that the average cluster was active for three hours per day. The remaining twenty-one hours were idle compute that the company was paying for because cluster startup time discouraged on-demand provisioning. The team had sized clusters for peak memory requirements and kept them running because a cold start took eight minutes, which was too slow for jobs that needed to run on a tight schedule.

S3 accounted for $67,000: fourteen percent of the bill. The company stored 4.2 petabytes of data across all S3 buckets. A lifecycle analysis showed that 2.8 petabytes (sixty-seven percent) had not been accessed in over ninety days. This data was in S3 Standard storage at $0.023 per gigabyte per month. The same data in S3 Glacier Instant Retrieval would cost $0.004 per gigabyte: an eighty-three percent reduction for cold data.

Kinesis accounted for $52,000: eleven percent of the bill. The company ran eight Kinesis data streams for real-time event ingestion. Analysis of consumer throughput showed that four of the eight streams were over-provisioned by a factor of three. The streams had been sized for a projected traffic increase that never materialised.

Lambda, SageMaker, and other services accounted for the remaining $81,000.

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The waste was not in any single component. It was distributed across every component. Each individual waste amount seemed defensible when viewed in isolation. The staging cluster needed to be available, the EMR clusters needed fast startup, the S3 data was potentially needed. Viewed together, the waste totalled $201,000 per month, forty-two percent of the bill.

Changes Made

Every change was made during a six-week sprint. No features were cut. No pipelines were decommissioned. No data was deleted.

Redshift: The staging cluster was moved to a scheduled start-stop. It started at 7 AM and stopped at 8 PM on weekdays. Weekend access was available on-demand through a script that started the cluster and stopped it after two hours of inactivity. Savings: $28,000 per month. The analytics cluster was right-sized based on actual query patterns. The largest tables were identified, and sort keys and distribution styles were optimised to reduce the cluster’s memory requirements. Savings: $22,000 per month. The ML cluster was replaced by Redshift Serverless for the three daily batch jobs. Serverless charged only for compute consumed during query execution. Savings: $31,000 per month.

EMR: Nine persistent clusters were converted to transient clusters triggered by the orchestration tool. The orchestration tool started an EMR cluster, ran the job, and terminated the cluster. To address the startup time concern, the team used EMR-managed scaling with a warm pool of instances that started in under two minutes. For the three jobs that truly required persistent clusters because they ran every thirty minutes, the clusters were right-sized using auto-scaling policies. Savings: $58,000 per month.

S3: The 2.8 petabytes of cold data was moved to S3 Glacier Instant Retrieval using a lifecycle policy. Data not accessed for sixty days was automatically transitioned. The transition was transparent to downstream systems because Glacier Instant Retrieval provides millisecond access latency: slower than Standard but fast enough for analytical queries. The team verified query performance before and after the transition and found no measurable degradation for the workload patterns in use. Savings: $44,000 per month.

Kinesis: The four over-provisioned streams were right-sized to match actual throughput plus a thirty percent buffer. The buffer was maintained because traffic spikes did occur (breaking news events drove sudden surges in the media analytics workload) but the spikes did not justify a three-times headroom. Savings: $18,000 per month.

What We Did Not Touch

Three cost centres were evaluated and left unchanged.

The production Redshift cluster was the largest single expense at $105,000 per month. It could have been reduced by offloading some queries to a cheaper alternative. But the cluster served customer-facing dashboards with strict latency requirements. Any performance degradation would have been visible to customers and would have triggered complaints. The team decided that customer-facing performance was not an acceptable trade-off for cost savings.

The SageMaker training jobs ran on GPU instances that were expensive: $47 per hour for a p3.2xlarge. The jobs ran for an average of six hours per day, totalling approximately $8,500 per month. The team evaluated spot instances, which would have reduced cost by sixty percent. But spot instances can be interrupted, and a training job that was interrupted after four hours wasted four hours of compute. For short training jobs (under two hours), spot instances were viable. For the longer jobs, the risk of interruption and retraining was not worth the savings. The team chose to keep on-demand pricing for long jobs and use spot instances only for short jobs, saving $2,100 per month: a modest amount that was not included in the headline number.

The Lambda functions consumed $6,800 per month. The team reviewed the functions for inefficiencies (cold starts, oversized memory allocations, unnecessary invocations) and found $400 per month of optimisation. The effort required to refactor the functions was estimated at three engineer-weeks, which was not justified for $400 monthly savings. The Lambda bill was left unchanged.

The Outcome

Monthly spend dropped from $480,000 to $290,000, a forty percent reduction. The savings of $190,000 per month, or $2.28 million per year, exceeded the CFO’s thirty percent target.

No customer-facing features were affected. No internal dashboards changed. No data was lost. The only user-visible change was that the staging cluster required an explicit start command outside business hours, which the engineering team accepted because they understood the cost trade-off.

The more important outcome was architectural awareness. The data team had been making provisioning decisions in isolation. Each team sized their own clusters, configured their own storage, and managed their own streams. Nobody had a cross-cutting view of the total cost. After the audit, the company implemented a monthly cost review where each component owner reported their spend against a budget and justified any increase. The review was not punitive. It was informational. The team needed to see the aggregate picture to make good provisioning decisions.

The Waste Detection Rule

Cloud waste follows a pattern: resources sized for peak demand running during non-peak hours, persistent resources that should be transient, and storage tiers that do not match access patterns. These three patterns account for seventy to eighty percent of cloud waste in most data platforms.

Run a billing audit before cutting features. Decompose the bill. Map each component to its utilisation. Look for resources that are running when nobody is using them, sized larger than their workload requires, or storing data in a tier that does not match its access frequency. The waste is almost always there. It accumulated because each provisioning decision was made in isolation and nobody audited the aggregate.

The audit takes two weeks. The fixes take four to six weeks. The savings are permanent. This is the highest-ROI engagement in cloud cost management because the waste is architectural, not behavioural. You are not asking people to use less. You are asking the infrastructure to match the workload.

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A quiet but significant trend has emerged over the past two quarters: enterprises are moving AI workloads off managed services and back onto infrastructure they control. The pattern is not universal,

The invisible labour of maintaining AI systems in production
The invisible labour of maintaining AI systems in production
07 Sep, 2026 | 04 Mins read

Every AI demo is impressive. Every AI production system is a maintenance burden. The distance between those two statements is where most AI initiatives quietly fail. The demo shows a model producing

How a logistics company predicted delivery failures before they happened
How a logistics company predicted delivery failures before they happened
08 Sep, 2026 | 06 Mins read

A regional logistics company running three thousand deliveries per day across a six-state territory had a late-delivery rate of fourteen percent. The cost of a late delivery was not just the apology.

Text-to-SQL tools in 2026: which ones actually work?
Text-to-SQL tools in 2026: which ones actually work?
10 Sep, 2026 | 05 Mins read

Text-to-SQL has been promised for a decade. Every year, a new tool claims to convert natural language to production-ready SQL. Every year, the demos look impressive and the production deployments disa

The LLM cost optimisation playbook: 12 techniques that actually save money
The LLM cost optimisation playbook: 12 techniques that actually save money
13 Sep, 2026 | 04 Mins read

LLM costs are easy to start and hard to control. A team ships a feature that calls GPT-4, the feature works, users like it, and the invoice climbs 15 percent month over month. The cost is not a proble

Lessons from manufacturing quality control for AI system reliability
Lessons from manufacturing quality control for AI system reliability
14 Sep, 2026 | 04 Mins read

Manufacturing figured out quality control decades ago. AI is still learning the lesson the hard way. When a car leaves the factory with a defect, the manufacturer does not shrug and say "models are p

When the CDO and CTO disagreed on AI strategy, and what happened
When the CDO and CTO disagreed on AI strategy, and what happened
15 Sep, 2026 | 06 Mins read

At a mid-market insurance company with eight thousand employees, the Chief Data Officer and the Chief Technology Officer had fundamentally different views on how AI should be adopted. The CDO believed

Building a customer 360 from 12 disconnected CRM systems
Building a customer 360 from 12 disconnected CRM systems
16 Sep, 2026 | 07 Mins read

A healthcare conglomerate grew through acquisition for fifteen years. Each acquisition brought its own CRM. Salesforce in three divisions. Microsoft Dynamics in two. HubSpot in one. A custom-built CRM

Document intelligence platforms: AWS Textract vs Azure AI Doc Intelligence vs Google DocAI
Document intelligence platforms: AWS Textract vs Azure AI Doc Intelligence vs Google DocAI
17 Sep, 2026 | 05 Mins read

Every enterprise processes documents. Invoices, contracts, forms, receipts, medical records, insurance claims. The volume is measured in millions of pages per month for large organisations. The questi

AI chip wars: NVIDIA, AMD, Intel, and custom silicon: who wins?
AI chip wars: NVIDIA, AMD, Intel, and custom silicon: who wins?
19 Sep, 2026 | 04 Mins read

NVIDIA still dominates AI inference and training hardware, but the dominance is no longer absolute in the way it was 18 months ago. AMD has shipped competitive alternatives at lower price points. Inte

The ML model that predicted churn but couldn't explain why
The ML model that predicted churn but couldn't explain why
22 Sep, 2026 | 06 Mins read

A subscription media company with 1.2 million subscribers built a machine learning model to predict churn. The model worked. It identified at-risk subscribers with seventy-nine percent precision and e

An insurance firm's journey from PDF extraction to automated underwriting
An insurance firm's journey from PDF extraction to automated underwriting
29 Sep, 2026 | 06 Mins read

A specialty insurance firm underwriting commercial property policies received submission packets as PDF documents. Each packet contained an ACORD application, loss runs from prior carriers, a statemen

Low-code AI platforms: worth it for data teams?
Low-code AI platforms: worth it for data teams?
30 Sep, 2026 | 05 Mins read

Low-code AI platforms promise to put machine learning in the hands of people who cannot write Python. The pitch is compelling: connect your data, configure a pipeline with drag-and-drop components, de

What jazz improvisation teaches us about multi-agent coordination
What jazz improvisation teaches us about multi-agent coordination
05 Oct, 2026 | 04 Mins read

The typical approach to multi-agent AI systems is choreographed. A central orchestrator assigns tasks, sequences handoffs, and controls the flow. Agent A finishes, passes to Agent B, which passes to A

The carbon footprint of training frontier models: what the latest research shows
The carbon footprint of training frontier models: what the latest research shows
10 Oct, 2026 | 04 Mins read

The energy consumption numbers for training frontier AI models have crossed a threshold that makes them difficult to ignore. Training a single large language model now consumes between 50 and 100 giga

LLM gateway comparison: LiteLLM, Portkey, Martian
LLM gateway comparison: LiteLLM, Portkey, Martian
29 Jun, 2026 | 07 Mins read

A production AI application calls multiple LLM providers. The primary model is GPT-4o for complex reasoning, but simple classification tasks use Claude Haiku for cost savings, and the fallback for rat

The Rise of GPU Databases for AI Workloads
The Rise of GPU Databases for AI Workloads
22 Jan, 2024 | 03 Mins read

Traditional relational database management systems were designed for an era of megabyte-scale datasets and batch reporting. AI workloads demand processing terabyte-scale datasets with complex analytic

Vector Databases: The Missing Piece in Your AI Infrastructure
Vector Databases: The Missing Piece in Your AI Infrastructure
12 Jan, 2024 | 02 Mins read

Vector databases index and query high-dimensional vector embeddings. Unlike traditional databases that excel at exact matches, vector databases enable similarity search: finding items conceptually clo

Case Study: End-to-End RAG Platform for Customer Support
Case Study: End-to-End RAG Platform for Customer Support
05 Dec, 2025 | 05 Mins read

A SaaS company with 200 support agents and 10,000+ knowledge base articles had an 18-hour average response time and 23% first-contact resolution. Their largest enterprise client threatened to cancel a

Designing the Enterprise Knowledge Layer: Beyond RAG
Designing the Enterprise Knowledge Layer: Beyond RAG
16 Jan, 2026 | 14 Mins read

Most teams implement retrieval-augmented generation and call it a knowledge layer. Give the model access to a vector database, stuff in some documents, and ship. This approach works for demos. It fall

AI Agent Orchestration Patterns: From Chaining to Multi-Agent Systems
AI Agent Orchestration Patterns: From Chaining to Multi-Agent Systems
27 Jan, 2026 | 13 Mins read

A software debugging agent receives a bug report. It needs to search code, understand the error, propose a fix, write tests, and summarise for the developer. None of these steps are independent. Each

AI Infrastructure for Legacy Systems: Modernising 20-Year-Old ERPs with AI
AI Infrastructure for Legacy Systems: Modernising 20-Year-Old ERPs with AI
18 Feb, 2026 | 13 Mins read

A manufacturing company runs their operations on an ERP system installed in 2004. The vendor still supports it. The team knows how to maintain it. The integrations are stable. It works. The problem i

Case Study: Building a Production AI Knowledge Layer for Financial Services
Case Study: Building a Production AI Knowledge Layer for Financial Services
01 Mar, 2026 | 10 Mins read

A regional bank's investment research team spent 60% of their time gathering information and 40% doing analysis. Analysts had to search through regulatory filings, internal research memos, market data

Feature Stores for AI: The Missing MLOps Component Reaching Maturity
Feature Stores for AI: The Missing MLOps Component Reaching Maturity
12 Mar, 2026 | 11 Mins read

A recommendation system team built their tenth model. Each model required feature engineering. Each feature engineering project started by copying code from the previous project, then modifying it for

Tool Calling and Function Calling: Connecting AI to Enterprise Systems
Tool Calling and Function Calling: Connecting AI to Enterprise Systems
28 Mar, 2026 | 14 Mins read

A language model that only generates text is not enough for most enterprise problems. The real value emerges when an AI system can look up your customer record, check inventory levels across warehouse

Case Study: Multi-Agent System for Supply Chain Optimisation
Case Study: Multi-Agent System for Supply Chain Optimisation
13 Jun, 2026 | 12 Mins read

A mid-size automotive parts manufacturer with operations spanning 15 countries and relationships with over 200 suppliers faced a supply chain coordination problem that was consuming too much of their

The AI Data Pipeline: Special Considerations for Unstructured and Structured Data
The AI Data Pipeline: Special Considerations for Unstructured and Structured Data
11 May, 2026 | 13 Mins read

Data pipelines for AI are not the same as data pipelines for traditional software systems. The outputs are different. The failure modes are different. The tolerance for data quality issues is differen

Semantic Caching for AI: Reducing Latency and Cost with Meaning-Based Retrieval
Semantic Caching for AI: Reducing Latency and Cost with Meaning-Based Retrieval
19 May, 2026 | 07 Mins read

Every repeated question your AI system answers is money spent and latency incurred that you did not need to. If a thousand users ask the same question in a week, running it through the language model

AI Observability: Monitoring Hallucinations, Latency, and Cost in Production
AI Observability: Monitoring Hallucinations, Latency, and Cost in Production
30 Apr, 2026 | 09 Mins read

Traditional software monitoring tracks CPU utilisation, memory consumption, request rates, and error counts. These metrics tell you whether your service is running and whether it is handling load. The

Evaluating LLM Providers for Enterprise: A Framework Beyond Benchmark
Evaluating LLM Providers for Enterprise: A Framework Beyond Benchmark
08 Apr, 2026 | 10 Mins read

Benchmark scores tell you how a model performs on problems that someone else chose. Your enterprise systems present different problems: your proprietary terminology, your specific data distributions,

RAG vs Fine-Tuning: Choosing the Right Approach for Your Use Case
RAG vs Fine-Tuning: Choosing the Right Approach for Your Use Case
10 Jul, 2026 | 09 Mins read

Your team has a real use case. Maybe it is a support assistant that answers from your knowledge base, a contracts reviewer that applies your house clause library, or an ops copilot that understands yo

Choosing a Vector Database for Production AI Applications
Choosing a Vector Database for Production AI Applications
10 Jul, 2026 | 12 Mins read

You have a retrieval-augmented generation proof of concept that works on a laptop. The embeddings are in a CSV file, the search is brute force, and the demo impresses the steering committee. Now someo