Cost Optimization Playbook

Cut operating expenses with an immediate positive impact on SaaS and AI gross margins by targeting unit economics, token consumption, and compute efficiency. Treat inference and cloud compute as variable COGS, not fixed operational expense — that framing is what makes these levers actionable.

The playbook is in three parts. Where the platform already has a knob for a lever, it's called out as On the platform — the rest is guidance for your own stack.


1. AI & inference cost optimization

Model right-sizing

Route simple tasks (classification, routing, basic extraction) to lightweight models — the Llama 3 8B class, Nova Micro, Claude 3 Haiku class — and reserve frontier models exclusively for complex multi-step reasoning.

Prompt & context caching

Enable vendor-native prompt caching, and use semantic caching to reuse context windows across repetitive queries.

Batch execution

Shift non-real-time workloads (nightly indexing, asynchronous processing, background summarization) to batch APIs for a flat discount.

Token budgeting

Enforce strict output-token limits and compress system prompts to minimize per-request overhead.


2. Cloud compute & data storage

Spot & Savings Plan commitments

Transition stateless worker nodes and dev/staging environments to Spot / Preemptible instances; apply 1-year Savings Plans to baseline database infrastructure.

Vector database quantization

Downsample vector embeddings (e.g. float32 → int8 or scalar quantization) to cut RAM requirements and vector storage costs by up to 75%. Applies to your own vector stores; the platform's embeddings/rerank surface handles the rest.

Egress & storage pruning

Enforce regional data locality to eliminate cross-region egress charges; delete orphan disk volumes, unattached IPs, and stale log archives.


3. Usage control

Usage capping

Institute per-tenant rate limits on high-cost AI features to prevent edge-case usage from eroding enterprise margins.


Treating inference and cloud compute as variable COGS rather than fixed operational expenses provides immediate margin expansion without compromising product performance — start with model tiering and batch, then layer in compute commitments and storage pruning.