Insights / Case Study 01

Cost Optimization by Moving to Local LLM Inference

A mid-size B2B product team was spending too much on cloud API inference for high-volume internal workflows. We redesigned the stack around local inference with model adapters, quantization, and optimized serving.

Baseline

Cloud inference bills rising month-over-month

Approach

Local GPU serving + targeted model adaptation

Outcome

Lower recurring inference cost with stable latency

What we changed

We selected a local model family that met quality thresholds for the target tasks, then used parameter-efficient tuning instead of full retraining. Adapter-based methods made iteration cheaper and faster.

We applied quantization and memory-efficient serving patterns to fit throughput targets on fewer GPUs. This removed most per-token external API cost and made spend predictable.

We added observability around prompt classes, token volume, latency, and fallback rates so cost and quality regressions could be caught early.

References used in design decisions