How We Estimated Our AWS Costs Before Shipping Any Code

Heap is an analytics tool designed to capture every user interaction on web and iOS platforms without the need for predefined events, enabling flexible and retroactive analysis. Initially, the financial viability of its underlying technology was uncertain, as similar tools offered rigid data views or worked only with predefined events. To address this, Heap aimed to allow ad-hoc analysis across complete user activity streams. Estimating costs, particularly related to data storage and processing on AWS, was crucial. By focusing on high-signal events and leveraging cost-effective storage strategies, Heap managed to reduce data throughput and associated costs significantly. Despite initial estimations, unforeseen advantages like data compression and a shift to reserved instances helped lower expenses further, although challenges such as AWS bundling and data redundancy increased some costs. These considerations were vital in building a sustainable business model, and the company's strategic infrastructure decisions have supported its growth and scalability.

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