Case Study

Acme Corp: 70% Cost Reduction & 10x Faster Queries with a Modern Observability Stack

Discover how Acme Corp transformed its legacy Nginx/ELK telemetry pipeline into a high-performance, cost-effective system powered by Caddy, OpenTelemetry, VictoriaMetrics, and ClickHouse.

Team collaborating around a modern dashboard

The Client

Acme Corp, a rapidly growing SaaS provider with over 1 million daily active users.

Industry

Cloud Software / SaaS

Challenge

High ELK costs, slow log queries, and complex Nginx certificate management.

The Challenge: Scaling Against Legacy Limitations

Acme Corp faced significant hurdles with its existing observability infrastructure. Their core issues stemmed from:

Exorbitant ELK Costs

Over $25,000/month spent on Elasticsearch, largely due to high data ingestion rates and inefficient storage.

Prometheus Scalability Issues

Metrics retention was limited due to the single-node Prometheus setup, leading to lost historical context.

Nginx Operational Overhead

Manual certificate rotation for hundreds of microservices was a constant burden.

Limited Data Transformation

Inability to filter or redact sensitive data at the edge, leading to compliance concerns.

The Solution: A Modern, Cost-Efficient Observability Stack

Tracelync partnered with ACME Corp to implement a new, highly optimized telemetry pipeline:

1

Edge Gateway with Caddy

Replaced Nginx with Caddy for automated mTLS and native OpenTelemetry integration, immediately reducing operational burden.

// Caddyfile mTLS & Tracing

tracing {
  span_name ingress_proxy
}

// OTel Processor config

processors:
  batch:
    timeout: 1s
  memory_limiter:
    limit_mib: 2000
2

OTel Collector Proxy

Deployed OTel Collector to act as a vendor-agnostic proxy for real-time data transformation and efficient routing.

3

VictoriaMetrics Storage

Migrated metrics to VictoriaMetrics, providing 10x better compression than standard Prometheus for long-term retention.

10x

Storage Compression

// High-speed log analysis

SELECT service, count()
FROM logs
WHERE level = 'error'
GROUP BY service
4

ClickHouse for Logs

Replaced Elasticsearch with ClickHouse, delivering sub-second analytical performance on petabytes of data at a fraction of the cost.

The Results

70%

Cost Reduction

Optimized resource utilization and storage.

10x

Faster Queries

Sub-second responses with ClickHouse.

99.99%

Telemetry Uptime

Achieved via clustered storage architectures.

Zero

Manual Certs

Fully automated by Caddy's native ACME.

"Working with Tracelync was a game-changer. The cost savings were immediate, and our engineers now have the insights they need without waiting."

Jane Doe

VP of Engineering, Acme Corp.

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