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Why We Switched Our Clients to Serverless: Saving 40% on Cloud Bills

Dec 24, 2025
7 min read
Verge Sphere Team
Why We Switched Our Clients to Serverless: Saving 40% on Cloud Bills

Cloud bills are the silent killer of scaling startups. We recently audited a client paying $3,000/month for AWS EC2 instances. They were paying for powerful servers to sit idle 80% of the time, just "waiting" for traffic that only came during business hours.

The Serverless Shift

We migrated their backend to a Serverless Architecture using AWS Lambda and Azure Functions. The philosophy is simple: You pay only when code runs. If no one visits your site at 3 AM, your cost is $0.

Why It Matters for AI

AI inference is "bursty" by nature. You might get 100 requests in one minute and zero for the next ten. Traditional servers handle this poorly—you either over-provision (pay too much) or under-provision (crash the server).

With Serverless, we implemented an Event-Driven Architecture:

  • User uploads a document → Triggers a "Document Uploaded" event.
  • Lambda function wakes up (in milliseconds) → Sends document to Vector Database.
  • Function shuts down immediately.

The Outcome: The client's bill dropped from $3,000 to roughly $450/month. More importantly, they no longer need a DevOps engineer to manage OS patches or server upgrades. The infrastructure simply exists when needed, and vanishes when it's not.