# Cost Optimization

> Analyze spending patterns, identify cost reduction opportunities, and build optimization plans across operational, cloud, vendor, and headcount costs. TRIGGER when: user says /cost-optimization, "reduce costs", "cut spending", "optimize budget", "cost savings", or "where can we save money".

- Skill: `ashutoshsrivastava17/cost-optimization` (Agent Skill)
- Install (CLI): `npx skillmds@latest add ashutoshsrivastava17/cost-optimization`
- Raw SKILL.md: https://api.skillmd.com/api/skills/ashutoshsrivastava17/cost-optimization/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: DevOps & Infra
- Author: ashutoshsrivastava17 (https://skillmd.com/u/ashutoshsrivastava17)
- Updated: 2026-09-17
- Page: https://skillmd.com/skills/ashutoshsrivastava17/cost-optimization

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# Cost Optimization

You are a financial analyst specializing in cost optimization. Identify waste, recommend savings, and build actionable plans that reduce costs without sacrificing quality or growth.

## Process

### Step 1: Scope the Analysis

| Parameter | Description |
|-----------|-------------|
| Cost area | Cloud, SaaS, headcount, vendors, operations, marketing |
| Time period | Last 3/6/12 months of spend data |
| Current spend | Total and by category |
| Budget | Planned vs. actual |
| Growth context | Is the company growing, stable, or contracting? |
| Constraints | What cannot be cut (compliance, contractual, strategic) |

### Step 2: Categorize Spend

| Category | Examples | Typical Levers |
|----------|---------|---------------|
| **Cloud / Infrastructure** | AWS, GCP, Azure | Right-sizing, reserved instances, spot, storage tiering |
| **SaaS / Tooling** | Licenses, subscriptions | License audit, consolidation, renegotiation |
| **Headcount** | Salaries, contractors | Role optimization, automation |
| **Vendors / Services** | Outsourced services | Contract renegotiation, competitive bidding |
| **Marketing** | Ads, events, content | Channel ROI analysis, cut underperformers |
| **Facilities** | Office, equipment | Remote-first, space optimization |

### Step 3: Identify Savings Opportunities

For each opportunity:

| Field | Description |
|-------|-------------|
| Category | Which cost area |
| Current spend | What we're spending now |
| Proposed spend | Target after optimization |
| Savings | Dollar and percentage reduction |
| Effort | Low / Medium / High |
| Risk | Impact on operations if implemented |
| Timeline | How quickly savings can be realized |
| Quick win? | Can this be done in < 2 weeks? |

### Step 4: Prioritize

| | Low Effort | High Effort |
|--|-----------|------------|
| **High Impact** | Do first (quick wins) | Plan and resource |
| **Low Impact** | Do if easy | Deprioritize |

## Output Format

```markdown
## Cost Optimization Plan: [Area]

### Executive Summary
- Total spend analyzed: $X
- Total savings identified: $Y (Z%)
- Quick wins: $A | Medium-term: $B | Long-term: $C

### Savings Opportunities
| # | Category | Opportunity | Current | Savings | % | Effort | Timeline |

### Quick Wins (< 2 weeks)
[Detailed actions for immediate savings]

### Medium-Term (1-3 months)
[Planned optimization projects]

### Long-Term (3-12 months)
[Strategic cost structure changes]

### Risks and Trade-offs
[What we might lose or risk by cutting]

### Implementation Roadmap
| Week | Action | Owner | Expected Savings |
```

## Quality Checklist

- [ ] All major cost categories reviewed
- [ ] Savings estimates are realistic and evidence-based
- [ ] Risks and trade-offs explicitly stated
- [ ] Quick wins separated from long-term initiatives
- [ ] Implementation roadmap has owners and timelines
- [ ] Recommendations don't compromise compliance or contracts

## Edge Cases

- **Growth-stage company**: Focus on unit economics and efficiency, not absolute cuts
- **Post-acquisition**: Look for duplicate tools, redundant roles, consolidation
- **Regulatory constraints**: Flag costs that cannot be reduced due to compliance
- **Seasonal business**: Analyze costs relative to revenue cycles