How Coconut slashed cloud cost effortlessly using dynamic commitment management

What is the company doing?

Coconut.co is a leader in cloud video transcoding, delivering cutting-edge solutions since 2006. With 17 years of technical expertise, Coconut offers lightning-fast, auto-scalable transcoding, up to 400% faster than real-time, trusted by over 1,200 developers and CTOs. Their API-first approach ensures seamless integration, backed by powerful, multi-language support. Clients benefit from up to 68% lower costs compared to competitors, with no surprise bandwidth or egress fees. Industry leaders like Triller, ClassDojo, and Dacast rely on Coconut to streamline operations and deliver exceptional video experiences.

What are the cloud challenges of the company ?

Despite its strengths, Coconut.co faces key challenges common to cloud-native platforms at scale. As usage grows, so do cloud infrastructure costs, making it increasingly difficult to balance performance with affordability. The team is heavily focused on building new features and improving the product, leaving limited time and internal resources to fully optimize their infrastructure for cost efficiency. Additionally, maintaining a high-performing transcoding pipeline requires constant testing and fine-tuning across a complex, distributed environment. This creates ongoing pressure to manage compute, storage, and bandwidth in real-time while continuing to meet the expectations of a global customer base.

What did Opsima do for them?

Opsima transformed Coconut.co’s cloud cost strategy by automatically securing over 90% coverage of their compute usage with Savings Plans, ensuring optimal commitment levels even as they experimented and scaled. Our intelligent system differentiated workloads in real-time, adjusting coverage with the right timing and granularity to match their evolving usage patterns. We also extended cost optimization to their RDS using Reserved Instances, traditionally a rigid commitment, but made flexible through our dynamic levers, achieving coverage for more than half of their RDS instances. All of this was handled automatically, requiring zero time or manual input from their team, with multiple optimization decisions made weekly to ensure continuous efficiency and cost control.

What are the outcomes for the company?

Thanks to Opsima, Coconut.co increased their savings rate from 0% to 32%, placing them in the top 10% of companies globally in terms of cloud cost optimization. Beyond the financial impact, Opsima brought peace of mind, constantly monitoring and adapting in real time to maintain optimal commitments without disrupting their engineering priorities. This allowed the team to confidently roll out infrastructure changes, like migrating to Graviton or upgrading instance types, without compromising cost efficiency or productivity. Behind the scenes, Opsima executes thousands of actions every month to optimize coverage, utilization, and Net Savings Rate (NSR) 24/7, achieving a level of precision and scale that would be impossible through manual efforts alone.

About Opsima

Opsima automates AWS commitment management to save businesses time and money. We use proprietary algorithms embedding FinOps best practices to optimize Reserved Instances and Savings Plans. With over 250 satisfied clients, Opsima delivers up to 40% cost savings through fully automated cloud optimization without technical trade-offs.