Caching Strategies for LLM Apps That Actually Save Money
This guide is what I'd tell another engineer if they asked me about caching strategies for llm apps that actually save money over coffee. Specifics, not abstractions.
Most teams over-engineer this. Pick the simplest shape that passes your eval. Layer on complexity only when a specific failure mode justifies it.
Why this question is harder than it looks
The default answer most blogs give is the marketing answer of whichever vendor sponsored the post. The honest answer depends on three things that have nothing to do with the vendor: your traffic shape, your eval criteria, and your team's operational maturity. Skip those and any "best practice" you read is a guess.
Decision framework
- What does your eval say? If you don't have an eval yet, this is the first thing to build. Three to five examples that capture your hardest cases.
- What's your latency budget? Real number, P95, under load. Not "as fast as possible".
- What does it cost when this thing 10x's? The right answer often changes between dev volume and production volume.
- How much ops are you willing to carry? A self-hosted answer that you can't operate is worse than a more expensive managed answer.
The patterns that actually work
Pattern 1 — small model first
Route everything to the smallest model that passes the eval. Escalate to a bigger model only when the small one fails. Cost drops 5-10x for most workloads, latency drops too.
Pattern 2 — cache aggressively
Prompt caching, response caching, embedding caching. The savings are real if the input has shape — and most production traffic does.
Pattern 3 — eval gates on every change
Don't ship a prompt change without running the eval. Don't merge a config change without running the eval. The eval is the single highest-leverage piece of infrastructure on an LLM team.
Pattern 4 — provider-agnostic interface
Wrap your model calls behind a thin internal interface so swapping providers is one config change, not a code rewrite. The first time a provider has an outage you'll be glad you did this.
Anti-patterns to avoid
- Picking the biggest model "to be safe". Pure cost waste. Run the eval on a small model first.
- One giant system prompt. Compose smaller, role-specific prompts. Easier to test, easier to swap.
- Hard-coded retry loops without backoff. Adds traffic when the provider is hurting.
- "We'll add an eval later". Later means never. Three examples now is worth a hundred examples later.
FAQ
Where do I start if I'm new to this?
Build one tiny eval. Three examples. Pick the smallest model that passes. Ship that. Improve from real production data, not from imagined edge cases.
How much engineering time is this?
Hours, not weeks. The patterns above keep complexity from sprawling. The complexity that does sprawl is in the eval set, which is fine — that's the part that's actually load-bearing.
What happens when a model gets deprecated?
If you've followed pattern 4 above, it's a config flip plus an eval re-run. If you haven't, it's a refactor.