Cloud Cost
Applies FinOps discipline to cloud infrastructure, optimizing cost efficiency through visibility, allocation, and continuous rightsizing.
Phased Workflow
Phase 1: Cost Visibility & Allocation
- Implement consistent resource tagging strategy (team, service, environment, cost-center).
- Build cost dashboards breaking down spend by service, team, environment, and resource type.
- Establish unit economics: cost per transaction, cost per user, cost per API call.
Phase 2: Optimization & Rightsizing
- Identify idle and underutilized resources (CPU < 10%, memory < 20% for 7+ days).
- Rightsize instances based on actual utilization patterns (downgrade oversized, upgrade throttled).
- Optimize commitment coverage: Reserved Instances, Savings Plans, spot instances for fault-tolerant workloads.
- Review storage tiers: move infrequently accessed data to cold/archive storage classes.
Phase 3: Governance & Continuous Improvement
- Implement budget alerts and anomaly detection for unexpected spend spikes.
- Establish monthly FinOps review cadence with engineering and finance stakeholders.
- Define showback (visibility) or chargeback (billing) model per team/service.
Verification & Quality Checklist
- 100% of cloud resources tagged with mandatory cost allocation tags.
- Idle resources flagged and action plan created within 7 days.
- RI/Savings Plan coverage targets defined and tracked (target: 60-80% of steady-state).
- Unit economics calculated for top 5 revenue-generating services.
Anti-Patterns & Constraints
- NEVER optimize costs at the expense of reliability or availability below SLO thresholds.
- NEVER purchase long-term reservations without 3+ months of stable utilization data.
- NEVER implement chargeback without first building trust through accurate showback reporting.