The Economics of Kafka

Why Architecture Determines
Your Kafka Bill

Traditional Kafka ties compute, storage, and network into a single cost bundle. You pay for all three—whether you use them or not. Diskless architecture breaks this coupling and changes the economics entirely.

Storage MarkupEBS vs S3 pricing gap
Replication OverheadEvery byte stored three times
HiddenCross-AZ CostOften exceeds storage at scale

The insight: Most Kafka cost isn't compute—it's the architectural overhead of disk-based replication. Eliminate the disks, eliminate the overhead.

The Cost Anatomy of Disk-Based Kafka

Before optimizing, understand where the money goes. Here's how a typical Kafka deployment burns through your budget.

Monthly Cost Distribution

Based on 300 MB/s throughput, 50TB retention

Cross-AZ Traffic$51K/mo
64%
Over-Provisioned Storage$24K/mo
30%
Compute$4K/mo
5%
Engineering TimePriceless
∞ — The cost you can't put on a spreadsheet
Infrastructure Cost$80K/mo

+ engineering time not included

Cross-AZ Traffic#1 Cost Driver

Three sources of cross-AZ traffic, all charged at $0.01-0.02/GB:

  • Replication: Every message replicated 2× across AZs
  • Producers: 2/3 of writes cross AZ boundaries
  • Consumers: 2/3 of reads cross AZ boundaries

Over-Provisioned Storage

EBS GP3 costs $0.08/GiB vs S3 at $0.023/GB. With 3× replication, 50TB becomes 150TB. Add 100% over-provisioning for headroom, and you're paying for 304TB to store 50TB of data.

Engineering TimePriceless

Partition rebalancing, broker scaling, capacity planning, incident response, on-call rotations. A typical team dedicates 0.5-1 full-time equivalent (FTE) to Kafka operations. What could they build instead? That's the cost you can't put on a spreadsheet.

The Surprise Cost Driver

Cross-AZ traffic—not storage—is often the largest infrastructure cost. Replication, producer writes, consumer reads—they all cross AZ boundaries. And it's the cost most teams don't see coming until the bill arrives.

How Diskless Changes the Equation

Traditional Kafka's cost problems aren't bugs—they're architectural. Diskless fixes them at the root.

Disk-based Kafka

Cost Formula:
Broker = Compute + Storage + Network
(tightly coupled)
Total = Peak × 24/7 × 3 replicas
  • Storage tied to compute—can't scale independently
  • 3× replication for durability = 3× storage cost
  • Cross-AZ replication = massive network fees
  • Provision for peak, pay 24/7

Diskless Kafka (AutoMQ)

Cost Formula:
Broker = Stateless Compute
(decoupled from storage)
Storage = S3 (pay per GB, no replication)
Total = Actual Usage × Time
  • Storage and compute scale independently
  • S3 provides 11 nines durability—no replication needed
  • Single-AZ writes to S3—zero cross-AZ traffic
  • Elastic scaling—pay only for what you use

Storage

From 6× to 1×

S3 provides 11 nines durability natively. No broker-level replication needed. Store 50TB as 50TB, not 304TB.

Cost reduction~90%

Network

From O(n) to O(1)

No cross-AZ replication traffic. Writes go to S3 in a single AZ. S3 handles cross-AZ durability internally—at no extra charge.

Cross-AZ cost$0

Compute

From Fixed to Elastic

Stateless brokers scale to actual demand. No over-provisioning for peak. Scale down during off-hours, scale up when needed.

UtilizationPay for actual use

The Numbers: AutoMQ vs Competitors

Scenario: 300 MB/s average throughput (614 MB/s peak), 1x fanout, 2-day retention, 50TB storage, Multi-AZ deployment

Cost ComponentApache Kafka
(Self-Hosted)
AWS MSKConfluent CloudRedpanda
(Tier 6)
AutoMQ
Compute$4,415/mo
(24× r5.xlarge)
$19,622/mo
(32× m5.2xlarge)
Included in CKU$28,827/mo
(6× im4gn.8xl + ...)
$2,144/mo
(9× m7g.2xlarge)
Storage$24,300/mo
(304TB EBS GP3)
$30,375/mo
(304TB EBS)
$12,150/mo
(50TB @ $0.24/GB)
$1,150/mo
(50TB NVMe)
$2,926/mo
(50TB S3)
Cross-AZ TrafficKey$51,328/mo
(replication + produce + consume)
$20,531/mo
(produce + consume)
Included$42,671/mo
(network egress)
$0
Platform Fee$0$0$16,808/mo
(CKU uptime)
$20,417/mo
(licensing)
$300/mo
Ingress/Egress FeeN/AN/A$47,735/mo
(770TB × 2)
N/A$15,696/mo
(770TB × 2)
Total$80,043/mo$70,529/mo$94,282/mo$93,065/mo$21,513/mo
vs AutoMQ3.7×more3.3×more4.4×more4.3×moreBaseline

Same Architecture, Same Cost Problem

Different names, same disk-based design. Every platform below inherits the same architectural overhead.

Apache Kafka (Self-Hosted)

Learn more →

The DIY tax. You provision for peak, pay for idle. 3× replication means 3× storage and 2× cross-AZ traffic. Ops burden not included in the bill—but you'll feel it.

3× replication overheadCross-AZ trafficOps burden

Managed, but still disk-bound. EBS attached to every broker. AWS absorbs replication cost, but you're still over-provisioned. No elasticity—brokers run 24/7.

EBS-boundOver-provisionedNo elasticity

Confluent Cloud

Learn more →

CKU pricing bundles compute and hides the math. Looks simple until you scale. Ingress/egress fees add up. Enterprise features require higher tiers.

Opaque pricingIngress/egress feesTier lock-in

Redpanda

Faster than Kafka, but same architecture. Local NVMe means attached storage on every node. Replication still generates cross-AZ traffic. Better performance, similar cost structure.

NVMe-boundCross-AZ replicationSame architecture

AutoMQ

Diskless. Stateless. S3-native. The architecture eliminates the root causes of Kafka cost: no local disks, no replication traffic, no over-provisioning. Storage costs what S3 costs. Compute scales with demand.

Zero cross-AZ traffic
No replication overhead
Elastic scaling

Beyond Infrastructure Cost

The bill you see is only part of the story. Here's what doesn't show up on your cloud invoice.

Operational Overhead

  • Partition rebalancing: hours → seconds
  • Scaling operations: manual → automatic
  • Capacity planning: guesswork → elastic
  • On-call burden: significant → minimal

Opportunity Cost

  • Time spent on Kafka ops = time not spent on product
  • Typical team: 0.5-1 FTE on Kafka maintenance
  • Senior engineers debugging instead of building
  • Delayed features due to infrastructure firefighting

Risk Cost

  • Data loss during broker failure
  • Extended downtime during scaling
  • Compliance issues with data locality
  • Incident response at 3am

Talk to Engineers Who've Been There

Our team includes engineers who've managed Kafka at scale—and felt the pain firsthand. We'd love to hear about your challenges and share how we've solved similar problems.

No sales pitch. Just an honest conversation about Kafka economics.

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