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Software Engineering|
Apr 14, 2026
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5 min read

Stop Using Microservices to Solve Organizational Problems: The Case for the 'Modular Monolith' with Elixir Umbrella Projects

Discover why the modular monolith elixir umbrella is the ultimate solution for engineering managers struggling with microservices overhead and network tax.

U
Udit Tiwari
ZenrioTech
Stop Using Microservices to Solve Organizational Problems: The Case for the 'Modular Monolith' with Elixir Umbrella Projects

The Great Architecture Retraction of 2024

For the better part of a decade, we’ve been told that if your team grows beyond ten people, you need microservices. We were sold a dream of infinite scalability and independent deployments, but for many, that dream turned into a debugging nightmare of distributed tracing and 3:00 AM PagerDuty alerts because a 'network hop' timed out. The industry is finally waking up. When Amazon Prime Video shifted from a distributed serverless architecture back to a monolith, they slashed infrastructure costs by 90%. This wasn't a failure; it was an admission that the 'Microservice Premium' is a tax most teams shouldn't be paying.

As architects, we often use technology to solve human problems. We think that because Team A and Team B can’t stop stepping on each other’s toes in the same codebase, we should physically separate their code into different repositories and deploy them to different clusters. But what if we could have the logical separation of services without the operational tax of distributed systems? That’s where the modular monolith elixir umbrella project shines.

The 'Network Tax' is Killing Your Velocity

In a microservices world, every interaction between modules becomes a network call. What used to be a simple, nanosecond-fast function call in memory is now a multi-millisecond HTTP or gRPC request subject to the fallibility of the network. This introduces the 'Network Tax': the cognitive and performance overhead of handling partial failures, retries, and eventual consistency.

When Segment consolidated 140+ microservices into a monolith, they didn't just save money; they reduced their test suite execution time from an hour to under ten minutes. They realized that managing shared libraries across 140 repositories was actually harder than managing one large codebase. In 2024, the consensus is shifting: unless you have 50+ developers, microservices are likely a net loss for your productivity.

The Golden Mean: Modular Monolith Elixir Umbrella

Elixir provides a unique abstraction called the 'Umbrella Project.' It allows you to maintain multiple applications within a single repository. Each application has its own folder, its own supervision tree, and its own internal logic. However, they share a single mix.lock file and a unified configuration.

Using a modular monolith elixir umbrella gives you the best of both worlds:

  • Logical Separation: Your 'Billing' app cannot reach into the 'Inventory' app's internals unless you explicitly allow it.
  • Operational Simplicity: You run one test command. You have one deployment pipeline. You have one version of every dependency.
  • In-Memory Performance: Communication between these apps happens via standard function calls or Elixir's message passing. No JSON serialization, no network latency, and no API gateways required.

Independent Deployability Without the Nightmare

One of the biggest lies about monoliths is that they can't scale. Tell that to Shopify, which manages a 2.8 million line Ruby monolith. With Elixir's Distillery or built-in Elixir Releases, you can actually package specific applications within your umbrella into separate artifacts. If your 'ImageProcessor' app needs 32GB of RAM but your 'API' app needs 10 nodes with high CPU, you can deploy them as separate OTP releases while still developing them in a single, unified repository. This is the ultimate 'get out of jail free' card for scaling.

Solving the 'Political' Problem of Team Scaling

We often move to microservices because we want team autonomy. We want the Checkout Team to own their code and the Search Team to own theirs. You don't need 50 repositories for this. A modular monolith elixir umbrella allows you to assign code ownership at the directory level. By using CODEOWNERS files in GitHub, you can ensure that the Billing Team must approve any change to the apps/billing directory, even if it's all in one repo.

The Risks: Managing State and Circular Dependencies

Of course, no architecture is a silver bullet. The danger of the umbrella approach is the 'distributed monolith'—where apps are technically separate but so tightly coupled they cannot function without each other. As noted by some Elixir experts, if you aren't careful, you can end up with circular dependencies where App A needs App B to start, but App B needs App A. Furthermore, developers often cheat by reaching into another app's database. To make a modular monolith work, you must enforce strict boundaries: apps should only talk to each other through defined public APIs (modules) and should never share a database schema.

The Future is Modular

The modular monolith elixir umbrella represents a pragmatic shift in how we think about monolith vs microservices 2024. It acknowledges that distributed systems complexity is a choice, not a requirement for growth. By starting with an umbrella project, you gain the ability to move fast today, while keeping the door open to spin off true microservices tomorrow if—and only if—the data proves you need to.

If you're tired of managing a mesh of microservices that feel like they're held together by duct tape and hope, it's time to look at Elixir. Build your monolith, but build it with boundaries. Your engineers (and your AWS bill) will thank you.

Are you ready to simplify your stack? Start by auditing your current microservices: how many of them exist solely to solve a team boundary issue rather than a technical scaling one? That's your starting point for consolidation.

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ElixirMicroservicesSoftware ArchitectureDevOps
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Udit Tiwari

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Article Details

Author
Udit Tiwari
Published
Apr 14, 2026
Read Time
5 min read

Topics

ElixirMicroservicesSoftware ArchitectureDevOps

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