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Pharmacy benefit manager — From one overloaded machine to two tiers, with 60% savings

Client: Pharmacy benefit manager — High-cost medicine distribution

The challenge

The application and the database shared a machine with 64 cores and 256 GB, competing for the same resources.

The solution

Each tier moved to its own machine, sized by function. With Azure Hybrid Benefit and reserved instances, cost dropped 60% compared with the pay-as-you-go rate.

Why can separating the application from the database reduce costs?

When an application and its database share the same machine, both compete for the same cores and the same memory. That competition often leads to oversizing the infrastructure to handle peaks, which increases spending without necessarily improving performance.

By giving each tier its own machine, sized according to its function, the capacity of each component can be matched to its real needs. This allows the application and the database to work without interfering with each other and makes the compute investment reflect what each one requires.

In the case of this pharmaceutical distributor, that separation, together with the use of Azure Hybrid Benefit and reserved instances, produced a 60% reduction compared with the pay-as-you-go rate. You can evaluate a similar approach by contacting our team to review your operation's architecture.

Technologies used

Results

Frequently asked questions

What was the pharmaceutical manager's original problem?
The application and the database ran on the same machine with 64 cores and 256 GB of memory, so both competed for the same resources. That saturation hurt operational performance and made it hard to use the infrastructure efficiently.
What did the implemented solution involve?
Each tier, that is, the application and the database, was given its own machine, sized to the needs of its role. This separation eliminated contention for resources and made it possible to allocate each component's capacity precisely.
How was the 60% cost saving achieved?
The saving came from combining Azure Hybrid Benefit with reserved instances on Microsoft Azure. Compared with pay-as-you-go pricing, this combination reduced infrastructure costs by 60%, according to the results documented in the case study.
Which Microsoft technologies were used in this project?
The project was built on Microsoft Azure, using Azure Hybrid Benefit to optimize licensing and reserved instances to reduce compute spending. Both were key to achieving the savings obtained.

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