cost-optimization

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Cloud cost management, rightsizing, and FinOps practices.

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[Cloud Infrastructure]

When & Why to Use This Skill

This Claude skill provides a comprehensive framework for cloud cost management and FinOps practices. It enables users to optimize infrastructure spending through actionable strategies such as rightsizing underutilized resources, leveraging strategic instance types (Reserved vs. Spot), and implementing automated storage lifecycle policies to significantly reduce cloud overhead.

Use Cases

  • Resource Rightsizing: Using CloudWatch metrics to identify underutilized EC2 instances and downsizing them to match actual performance requirements.
  • Automated Storage Tiering: Implementing Terraform configurations for S3 lifecycle rules to automatically transition infrequent data to lower-cost storage classes like Glacier.
  • FinOps Governance: Establishing a standardized tagging strategy across AWS, GCP, or Azure to ensure precise cost attribution and visibility for different engineering teams.
  • Purchase Option Optimization: Evaluating workload stability to determine the most cost-effective balance between Reserved Instances for baseline loads and Spot Instances for batch processing.
namecost-optimization
descriptionCloud cost management, rightsizing, and FinOps practices.

Cost Optimization

FinOps Principles

  1. Visibility - Know what you spend
  2. Optimization - Reduce waste
  3. Governance - Control growth

Quick Wins

Action Savings
Reserved instances 30-70%
Spot instances 60-90%
Rightsizing 20-40%
Unused resources 100%
Storage tiering 50-80%

Rightsizing

# AWS: Find underutilized instances
aws cloudwatch get-metric-statistics \
  --namespace AWS/EC2 \
  --metric-name CPUUtilization \
  --dimensions Name=InstanceId,Value=i-xxx \
  --start-time 2024-01-01T00:00:00Z \
  --end-time 2024-01-31T00:00:00Z \
  --period 86400 \
  --statistics Average

If CPU < 20% avg: Downsize or use smaller instance.

Reserved vs Spot

Workload Recommendation
Steady baseline Reserved (1-3 year)
Variable load On-demand + Spot
Batch processing Spot
Stateless services Spot with fallback

Storage Optimization

# S3 Lifecycle
resource "aws_s3_bucket_lifecycle_configuration" "main" {
  bucket = aws_s3_bucket.main.id

  rule {
    id     = "archive"
    status = "Enabled"

    transition {
      days          = 30
      storage_class = "STANDARD_IA"
    }

    transition {
      days          = 90
      storage_class = "GLACIER"
    }
  }
}

Monitoring Costs

  • AWS Cost Explorer
  • GCP Billing Reports
  • Azure Cost Management
  • Third-party: CloudHealth, Spot.io

Tagging Strategy

tags = {
  Environment = "production"
  Team        = "platform"
  Service     = "api"
  CostCenter  = "engineering"
}