How Fathom Analytics Saved $100,000 on AWS and Why to Consider Private Cloud or Bare Metal Alternatives

Cloud cost optimization is an essential task for any company operating at a large scale. Fathom Analytics, a privacy-focused web analytics service, managed to reduce its AWS bill by over $100,000 annually through a series of strategic adjustments to its infrastructure.

This case highlights the high costs of relying solely on a public cloud provider and suggests that, in many scenarios, private cloud solutions or bare-metalA bare-metal server is a physical server with a single may be viable alternatives to optimize costs and avoid vendor lock-in from platforms like AWS, Google Cloud, or Azure.

The Cost Issues with AWS

As Fathom Analytics grew, its spending on AWS significantly increased. As an independent company without external funding, they needed to find ways to reduce costs without compromising performance of their infrastructure, which processes billions of requests per month.

Their AWS infrastructure used the following services:

• Application Load Balancer (ALB)
• Web Application Firewall (WAF)
• AWS Lambda
• Simple Queue Service (SQS)
• CloudWatch
• NAT Gateway
• Redis Enterprise Cloud
• Route53

The focus of the optimization was on their data ingestion endpoint, which handled most of the traffic and operational costs.

How Fathom Analytics Reduced Its AWS Bill

Here are the key strategies they implemented and the annual savings achieved:

Key Changes Implemented

1. Log Optimization in CloudWatch
   • Identified unnecessary spending on Lambda logs that were not used.
   • Disabled automatic logging from AWS Lambda.
   • Result: $7,550 savings annually without affecting system performance visibility.
2. Reduction of Heavy NAT Gateway Usage
   • Migrated operations to a private network with VPC Peering instead of relying on NAT Gateway.
   • Maintained external connections only for critical APIs.
   • Result: $17,162 savings annually.
3. S3 Storage Review
   • Disabled unnecessary versioning on storage buckets.
   • Removed obsolete historical data.
   • Result: $5,774 savings annually.
4. Cost Reduction in Route53
   • Adjusted DNS record TTLs to avoid unnecessary requests.
   • Reviewed duplicate records and obsolete configurations.
   • Result: $2,547 savings annually.
5. Elimination of SQS in Data Processing Architecture
   • Before: Lambda -> SQS -> Lambda
   • Now: Lambda processes requests directly without intermediaries.
   • Kept SQS only as a backup mechanism in case of failures.
   • Result: $44,851 savings annually by reducing Lambda and SQS calls.
6. Switching from AWS WAF to a More Efficient Solution
   • Moved WAF protection to their CDN provider, reducing dependency on AWS.
   • Implemented rate limiting per second instead of per minute.
   • Result: $12,201 savings annually.
7. Optimization of CloudFront Usage
   • Identified unexpected traffic in the Ireland region.
   • Reduced the amount of replicated data in CloudFront.
   • Result: $4,800 savings annually.

Why Consider Private Cloud or Bare-Metal?

The case of Fathom Analytics is a clear example of how cloud costs can escalate quickly if not managed properly.

For many companies, vendor lock-in with AWS, Google Cloud, or Azure can lead to high recurring costs. Migrating to private cloud solutions or bare-metal infrastructure can offer strategic advantages:

1. Long-Term Cost Reduction

• AWS and Google Cloud charge by usage and data transfer, which can be unpredictable.
• With bare-metal servers, a fixed cost is paid, avoiding additional expenses for traffic or storage.

2. Greater Control Over Infrastructure

• In a public cloud, the company has no control over provider decisions.
• A private cloud or in-house infrastructure allows for customization of hardware, networks, and software according to specific needs.

3. Better Performance and Latency

• Bare-metal infrastructure offers greater efficiency and lower latency compared to virtual machines in the cloud.
• Companies with heavy processing loads can benefit immensely from this option.

4. Security and Regulatory Compliance

• Complete control over data and network traffic, preventing potential data leaks.
• Compliance with regulations like GDPR, HIPAA, and SOC2 without relying on the cloud provider’s policies.

Examples of Alternatives

Conclusion: Is It Time to Evaluate Alternatives to Public Cloud?

The case of Fathom Analytics demonstrates how a strategic focus on cost optimization can yield significant savings without compromising performance.

For companies heavily relying on AWS, Google Cloud, or Azure, it is essential to evaluate the return on investment (ROI) and explore alternatives like private cloud or bare-metal, where providers with data centers in Spain, such as Stackscale (Grupo Aire), should be considered for cost and quality balance.

While public cloud remains a convenient option, high costs and lack of control may justify a partial or complete transition to in-house infrastructure.

Ultimately, the key is finding the balance between performance, costs, and flexibility, ensuring that the infrastructure meets business needs without incurring unnecessary expenses.

via: Fathom blog