How I Slashed Infrastructure Costs by 80% for a Struggling Startup

When I took over a project for a client recently, I discovered they were spending nearly $1,000 monthly on AWS infrastructure despite having fewer than 5 active users. This is how I fixed it.

The Problem
I inherited: messy React frontend with 1000+ line components

• Poorly designed Flask backend
• Everything running in development mode on expensive AWS EC2 instances
• A client who had just laid off their team and needed an MVP launched

The Solution
Instead of optimizing the existing AWS setup, I took a completely different approach:

• Purchased two high-performance dedicated servers from Hetzner
• Self-hosted Coolify as a Platform-as-a-Service solution
• Containerized all application components
• Implemented CICD with Github for streamlined deployments.
• Migrated everything away from AWS

For those unfamiliar, Coolify is an open-source alternative to Netlify or Heroku that can be self-hosted on your own infrastructure.

The Results

• 80% reduction in monthly infrastructure costs (from ~$1,000 to ~$<200)
• More stable environment with proper containerization
• Simplified deployment process
• Full control without vendor lock-in

Key Takeaway
Infrastructure decisions made early can dramatically impact your startup's runway. In this case, the original setup was burning cash that could have been better spent on product development or marketing.

Before automatically choosing the most popular cloud provider, consider alternatives like Hetzner combined with self-hosted PaaS solutions like Coolify. For many early-stage startups, this approach provides the right balance of developer experience and cost-efficiency.

Sometimes the best technical solution isn't the most expensive one.

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