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Enforcing Usage Limits

Cloud and AI companies are increasingly relying on expensive resources like computing power, GPUs, and Large Language Models (LLMs) like ChatGPT. While these technologies drive innovation and efficiency, they also pose a significant risk of uncontrolled costs, directly impacting profit margins.

Many SaaS companies operating on recurring subscription models are aware of risks around cost and margins. To mitigate it, they implement usage quotas, limiting excessive product consumption. A prime example is Vercel, which implements over twenty resource limits. This approach safeguards the company's financial health and ensures fair resource distribution among users.

Setting limits is just part of the equation, especially for AI-focused companies utilizing costly LLMs or GPU resources. Even with usage-based pricing models, protecting your systems from abusive overages and maintaining reasonable consumption thresholds is crucial. This isn't solely a financial consideration; it's also about maintaining system responsiveness and availability for all users.

Enforcing limits in high-traffic systems is a complex engineering challenge. A robust solution requires scalable data ingestion and instant aggregation capabilities. These are essential for real-time tracking of customer usage, enabling quick limit enforcement to minimize overages and abuse. Additionally, in environments catering to online traffic, limit enforcement must be not only reactive but also low latency, to prevent impacting end-user experience, a particularly challenging task in globally distributed systems.

Recognizing this challenge, the OpenMeter team, coming like Netflix and Stripe, has developed a robust solution tailored for modern cloud and AI applications, offering unparalleled support in enforcing usage limits efficiently and effectively. By choosing OpenMeter, you're not just selecting a tool; you're partnering with a team that understands the intricacies of usage management in the era of AI and cloud.

Read more about usage limits on our blog:

Last edited on February 23, 2024