FinOps Case Study

From $20k to $8k/month: Anatomy of a FinOps Rescue on AWS for Logistics

How we transformed an uncontrolled AWS bill into an optimized operation that saves $240K annually without compromising critical geolocation services
Noel Hidalgo
Noel Hidalgo AI Systems & Strategy
12 min readLevel: Executive + Technical
Executive Summary

The Problem and the Result

A national logistics platform with 2M+ active users faced uncontrolled AWS costs of $20,000 monthly due to oversizing, lack of governance and absence of savings strategies. The solution required maintaining critical real-time geolocation services without affecting operation.

Result in 6 months: 60% reduction in AWS costs (from $20K to $8K monthly), maintaining and even improving operational performance. Project ROI: 300% in the first year.

60%
Cost Reduction
$240K
Annual Savings
6
Implementation Months
0
Service Downtime

The Context: Critical Technological Dependencies

The client company operates a national logistics platform that coordinates transport fleets in real time. Their operations depend on four critical technological pillars that cannot fail:

Critical technological dependencies

Critical technological dependencies of the logistics platform

  • Real-time geolocation: Field agent tracking with 30-second updates
  • Multimedia management: Handling delivery images and quality audio files
  • Immediate coordination: Incident response system with sub-minute response
  • Demand scalability: Managing traffic spikes during peak seasons

The Main Challenge

Any interruption in these services meant immediate losses in field operations, delivery delays and deterioration of the end customer experience.

Anatomy of the Problem: $20K Monthly without Control

Initial Architecture on AWS

Initial architecture on AWS

Initial architecture: oversized and without cost optimization

The initial architecture presented all the classic symptoms of uncontrolled cloud growth:

  • 13 EC2 instances distributed across 5 environments (Production, Staging, QA, Testing, Development)
  • Inefficient autoscaling with default configurations
  • Independent RDS clusters per environment without optimization
  • S3 and EBS storage without lifecycle policies
  • Total absence of Reserved Instances or Savings Plans

Monthly Spending Distribution

Initial monthly spending distribution

Initial monthly spending distribution: databases represented 60% of cost

Databases 60% $12,000/mes
Compute 30% $6,000/mes
Storage 5% $1,000/mes
Networking 1% $200/mes
Others 4% $800/mes

Hidden Costs: Beyond the Bill

Hidden costs of cloud infrastructure

Hidden costs iceberg: the visible was only 30% of the real problem

During Phase 1 of K4i (Knowledge Assessment), we discovered that the problem went beyond the $20K monthly visible costs. Hidden costs included:

Key Cost Factors

Lack of Financial Governance

No clear resource ownership or tagging policies

Poorly Configured Autoscaling

24/7 active resources in non-productive environments

Absence of Savings Strategies

Lack of use of Spot Instances, Savings Plans or RIs

Unnecessary 24/7 Resources

Non-productive environments consuming resources continuously

Our FinOps Strategy: The Optimization Funnel

We applied our K4i methodology specifically adapted for FinOps, creating a progressive optimization funnel that guaranteed measurable results without compromising operation.

FinOps cost optimization funnel

FinOps optimization funnel: from visibility to improved cost efficiency

Implementation Phases

1

Resource Visibility

Implementation of complete tagging and real-time monitoring dashboards.

Result: 100% visibility in 3 weeks
2

Rightsizing

Optimization of instance types and sizes based on historical metrics.

Result: 25% immediate reduction
3

Environment Consolidation

Reorganization and automation of non-productive environments.

Result: 20% additional reduction
4

Compute Optimization

Strategic implementation of Reserved Instances and Spot Instances.

Result: 10% final optimization
5

Continuous Improvement

Policy automation and continuous efficiency monitoring.

Result: 5% sustained optimization

Results: From $20K to $8K with Improved Operations

Reduce costs and improve operations

Virtuous circle: cost reduction with operational improvement

Quantitative Results

Metric Before After Improvement
AWS Monthly Cost $20,000 $8,000 60% ↓
Annual Savings $0 $240,000 +$240K
EC2 Instances 13 8 38% ↓
Response Time 150ms 120ms 20% ↑
Service Uptime 99.5% 99.9% 0.4% ↑

Qualitative Results

  • Organizational alignment: Finance, IT and Operations working with shared metrics
  • Faster deployment times: 40% reduction in provisioning time
  • Complete visibility: Real-time dashboards for decision making
  • FinOps culture: Technical team aware of financial impact of decisions
"In 6 months we not only saved $240K annually, but improved performance and gained total visibility over our infrastructure. The h14z team understood that maintaining our critical services was non-negotiable."
— CTO, Logistics Platform

Lessons Learned: 3 Pillars of Successful FinOps

FinOps lessons learned

The 3 fundamental pillars for successful and sustainable FinOps

The Three Pillars

1

Tagging Policy

The lack of a tagging policy impacts visibility and costs. Without consistent tagging it's impossible to assign costs by department, project or environment.

Action: Implement automation that requires mandatory tags before provisioning resources.
2

Environment Management

Active management of non-productive environments is key. Development/testing environments active 24/7 can represent 30-40% of total spending.

Action: Automate on/off of non-productive environments outside business hours.
3

Proactive FinOps

FinOps must be a continuous discipline from the start. Waiting until costs spiral multiplies complexity and solution time.

Action: Integrate cost metrics into the definition of 'done' for each feature.

Recommendations for Companies with Similar Operations

Recommendations for companies with similar operations

Recommended roadmap for companies facing similar challenges

If your company manages a critical operation on AWS with growing costs, these are our recommendations based on this implementation:

Implementation Roadmap

Implement Tagging and Governance

Establish tagging and governance systems from the start

Weeks 1-2

Establish Operating Hours

Define clear hours for non-productive environments

Weeks 3-4

Evaluate Instance Options

Evaluate the use of Spot Instances, Savings Plans or Reserved Instances

Weeks 5-8

Integrate FinOps Reviews

Incorporate FinOps reviews into the standard operational cycle

Continuous

Foster Collaboration

Promote collaboration between Finance, IT and Operations

Months 2-6

Conclusion: FinOps as Competitive Advantage

This case demonstrates that FinOps is not just cost savings—it's intelligent optimization. By combining visibility, governance and continuous improvement, we transformed an uncontrolled AWS bill into an operational competitive advantage.

Key to Success

The application of our K4i methodology to FinOps ensured that each optimization was measurable, reversible and aligned with business objectives. The result: $240K annual savings with improved operations.

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