How We Saved a Client $10,000 a Month on their Cloud Costs

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Kubernetes (K8s) is a powerhouse for cloud orchestration, but inefficient scaling can quickly inflate costs—especially on AWS. For one of our clients, ballooning bills and underutilized nodes demanded action. By transitioning to Karpenter, an open-source scaling solution built for AWS, we optimized their infrastructure and saved more than $10,000 per month.

The Challenge: Why the Old Autoscaler Fell Short

The client’s legacy autoscaler struggled with rigid node sizing, often defaulting to predefined instance types that wasted CPU and Memory resources. Scaling delays during traffic spikes caused performance bottlenecks, while overprovisioning and poor Spot instance adoption drove up costs. As traffic grew, these inefficiencies became unsustainable.

The Fix: Karpenter’s Game-Changing Capabilities

Karpenter, an AWS-native autoscaler, addressed these gaps through just-in-time node sizing that dynamically provisions resources tailored to workload requirements. It aggressively prioritizes Spot instances (with On-Demand fallbacks), reducing costs by up to 70%. Unlike traditional tools, Karpenter uses real-time AWS metadata for instant scaling decisions and rapidly deprovisions idle nodes to eliminate waste.

Under the hood, Karpenter analyzes Pod resource requests in real time, selecting the smallest viable node to minimize overhead. A spot-first strategy maximizes savings, with automated retries to On-Demand instances if Spot capacity falters.

Implementation: Phased Rollout to Minimize Risk

We first validated Karpenter in staging with a 20% disruption budget to protect critical workloads. Non-critical apps were then migrated to Spot-heavy Node Pools, while production retained dedicated On-Demand nodes. Post-migration, Prometheus/Grafana dashboards track node utilization, Spot interruption rates, and cost metrics. Key Karpenter configurations include consolidation policies and prioritized Spot/On-Demand instance types.

Results: $10k+ Savings and Counting

The shift reduced compute costs by 30% and cut node counts by 20% through efficient scaling. Real-time adjustments handled traffic spikes without downtime, and aggressive cleanup eliminated idle resources. Spot instance adoption proved stable, aided by AWS’s Spot advisories to avoid unstable instance types.

Lessons Learned

Starting with a disruption budget ensured critical workloads stayed protected during testing. Monitoring Spot interruption rates and tuning cleanup thresholds (balancing speed and safety) were crucial. Future plans include predictive scaling via ML, multi-architecture ARM nodes, and FinOps integration for cost transparency.

Final Takeaway

Karpenter transformed the client’s Kubernetes environment from a cost sink to a lean, responsive asset. By ditching static Node Groups and embracing real-time provisioning, we achieved sustained efficiency. For teams serious about cloud optimization, Karpenter’s AWS-native design and flexibility are indispensable.

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