Efficiency through Self-Hosting: Strategic AI Cost Management

Early in our journey, we noticed a trend many growing companies face: as our team expanded, subscription costs climbed rapidly. Monthly overhead no longer made sense for our bottom line. This realization shifted our operational philosophy. Instead of defaulting to a 'buy' decision for every software need, we decided to prioritize self-hosting our internal tools. Today, we host almost everything ourselves, from task managers and engineering notes to internal hosting environments. We only rely on the cloud when absolutely necessary. Even for our GPU cluster, we avoid direct API calls to services like Gemini. Because we handle high-volume risk intelligence and AI processing, relying solely on external APIs would be prohibitively expensive. By managing our own infrastructure, we gain a clearer understanding of our costs and better monitoring capabilities. Beyond the financial savings, self-hosting has become a massive learning engine for our team. It gives everyone a deeper perspective on what it takes to build and maintain a system. When you manage the infrastructure yourself, you learn how systems work under the hood, what makes a product feel 'good,' and how to build for true reliability. It turns our internal operations into a training ground for engineering excellence. I want to be clear: I am against building tools from scratch if they do not align with our company's core vision. We do not want to reinvent the wheel. However, we will almost always choose to self-host an existing open-source solution before we consider a paid subscription. So many talented people build incredible products and release them as open source, and we believe in leveraging that innovation. We have integrated several powerful tools into our workflow that I highly recommend for any business looking to take more control over their tech stack. We use projects like Plane for project management, Fizzy, Docmost, and NocoDB. We also previously used GetOutline for our documentation. These tools are robust, reliable, and have allowed us to scale efficiently without the "subscription tax" slowing us down. In my next post, I will delve into the tools we use and share our experiences of what worked and what did not.

Jan 29