Cost Optimization

Cost Optimization

FinOps Principles

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

Quick Wins

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

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"
}