Federated Learning: Reduce AI Costs by Up to 35%

Vatsal Shah

Stuck in data silos and frustrated by costly data movement? Break free with Scalytics Connect, our innovative AI-powered platform. Analyze any data, anywhere, directly at its source – no need for centralizing or copying. Unify your existing data platforms and processing engines for seamless collaboration and unlock faster insights with on-site AI and machine learning. Scalytics Connect not only empowers smarter decision-making but also recovers up to 35% of your data spend through improved management practices. Capture double-digit savings within six months by optimizing your current data stack. Unleash the true power of your data with guaranteed security and privacy – all with Scalytics Connect.

CapEx cost reduction by unifying existing data platforms

Part of a recent customer integration involved comparing performance before and after deploying Scalytics Connect, as opposed to using standalone Spark instances for big data analytics. While research often cites Spark as the fastest big data system, this real-world case study offered valuable insights. Scalytics Connect functioned as a federated data access system, feeding processed data to Spark's machine learning modules. To reflect realistic user workloads, we focused on three main areas:

  • text analytics (e.g., word frequency, word synonyms, inverted index creation) 
  • data analytics (e.g., aggregate queries and join queries)
  • machine learning (SGD, K-Means, and cross-community pagerank)

For this comparison, we considered a single AWS cloud instance of two popular types: m4 ($2.42 / h) and T3 ($8.786 / h). We assume that the user keeps running the instance 8h / day for performing its data analytics. The table below illustrates the benefits benefits in terms of time and monetary cost savings. Remarkably, we observe that using Scalytics Connect always translates to time and cost savings: it allows users to save over $200,000 per year in the above-mentioned setting. 

Task

Time Savings

Cost Savings (USD)

Text Analytics Workload 5x  
Yearly Savings – m4 instance (8hrs/day)   $27,878.4
Yearly Savings – t3 instance (8hrs/day)   $101,214.72
Data Analytics Workload 2x  
Yearly Savings – m4 instance (8hrs/day)   $6,969.6
Yearly Savings – t3 instance (8hrs/day)   $25,303.68 
Machine Learning (AI) Workload 10x  
Yearly Savings – m4 instance (8hrs/day)   $62,726.4
Yearly Savings – t3 instance (8hrs/day)   $227,733.12

Reduce OpEx, cut CapEx costs by reusing your current data stack

Based on our experience, organizations may free their employees by one-third by ignoring cost savings for employing IT staff and can immediately redeploy their current workforce. For instance, to keep a Spark cluster of 25 nodes in AWS and run around 5 consulting AI projects, the typical team size overall is 14 team members:

  • Backend developer (5) 
  • System specialists (2)
  • Data scientists / Data analyst (4)
  • Project managers (3) 

Implementing Scalytics Connect reduces the average team size to 7 staff members:

  • Backend developer (2) 
  • System specialists (1)
  • Data scientists / Data analyst (2)
  • Project managers (2) 

This also leads to significant cost reductions for the entire firm. Due to the prolonged use of previously existing data processing platforms, such as Hadoop or Spark, and his commercial versions, our clients often save 35 - 40% OpEx expenses and on average more than 50% CapEx costs when using Scalytics Connect. Please keep in mind that the OpEx savings may be promptly redeployed to drive more projects at the same time.

About Scalytics

Scalytics provides enterprise-grade infrastructure that enables deployment of compute-intensive workloads in any environment—cloud, on-premise, or dedicated data centers. Our platform, Scalytics Connect, delivers a robust, vendor-agnostic solution for running high-performance computational models while maintaining complete control over your infrastructure and intellectual assets.
Built on distributed computing principles and modern virtualization, Scalytics Connect orchestrates resource allocation across heterogeneous hardware configurations, optimizing for throughput and latency. Our platform integrates seamlessly with existing enterprise systems while enforcing strict isolation boundaries, ensuring your proprietary algorithms and data remain entirely within your security perimeter.

With features like autodiscovery and index-based search, Scalytics Connect delivers a forward-looking, transparent framework that supports rapid product iteration, robust scaling, and explainable AI. By combining agents, data flows, and business needs, Scalytics helps organizations overcome traditional limitations and fully take advantage of modern AI opportunities.

If you need professional support from our team of industry leading experts, you can always reach out to us via Slack or Email.
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