Skip to main content Optimize cloud costs through resource rightsizing, tagging strategies, reserved instances, and spending analysis. Use when reducing cloud expenses, analyzing infrastructure costs, or implementing cost governance policies.
npx skills add wshobson/agents --skill cost-optimization agents claude claude-code subagents anthropic automation
Cloud Cost Optimization
Strategies and patterns for optimizing cloud costs across AWS, Azure, GCP, and OCI.
Purpose
Implement systematic cost optimization strategies to reduce cloud spending while maintaining performance and reliability.
When to Use
Reduce cloud spending
Right-size resources
Implement cost governance
Optimize multi-cloud costs
Meet budget constraints
Cost Optimization Framework
1. Visibility
Implement cost allocation tags
Use cloud cost management tools
Set up budget alerts
Create cost dashboards
2. Right-Sizing
Analyze resource utilization
Downsize over-provisioned resources
Use auto-scaling
Remove idle resources
3. Pricing Models
Use reserved capacity
Leverage spot/preemptible instances
Implement savings plans
Use committed use discounts
4. Architecture Optimization
Use managed services
Implement caching
Optimize data transfer
Use lifecycle policies
AWS Cost Optimization
Reserved Instances
Savings: 30-72% vs On-Demand
Term: 1 or 3 years
Payment: All/Partial/No upfront
Flexibility: Standard or Convertible
Savings Plans Compute Savings Plans: 66% savings
EC2 Instance Savings Plans: 72% savings
Applies to: EC2, Fargate, Lambda
Flexible across: Instance families, regions, OS
Spot Instances Savings: Up to 90% vs On-Demand
Best for: Batch jobs, CI/CD, stateless workloads
Risk: 2-minute interruption notice
Strategy: Mix with On-Demand for resilience
S3 Cost Optimization resource "aws_s3_bucket_lifecycle_configuration" "example" {
bucket = aws_s3_bucket.example.id
rule {
id = "transition-to-ia"
status = "Enabled"
transition {
days = 30
storage_class = "STANDARD_IA"
}
transition {
days = 90
storage_class = "GLACIER"
}
expiration {
days = 365
}
}
}
Azure Cost Optimization
Reserved VM Instances
1 or 3 year terms
Up to 72% savings
Flexible sizing
Exchangeable
Azure Hybrid Benefit
Use existing Windows Server licenses
Up to 80% savings with RI
Available for Windows and SQL Server
Azure Advisor Recommendations
Right-size VMs
Delete unused resources
Use reserved capacity
Optimize storage
GCP Cost Optimization
Committed Use Discounts
1 or 3 year commitment
Up to 57% savings
Applies to vCPUs and memory
Resource-based or spend-based
Sustained Use Discounts
Automatic discounts
Up to 30% for running instances
No commitment required
Applies to Compute Engine, GKE
Preemptible VMs
Up to 80% savings
24-hour maximum runtime
Best for batch workloads
OCI Cost Optimization
Flexible Shapes
Scale OCPUs and memory independently
Match instance sizing to workload demand
Reduce wasted capacity from fixed VM shapes
Commitments and Budgets
Use annual commitments for predictable spend
Set compartment-level budgets with alerts
Track monthly forecasts with OCI Cost Analysis
Preemptible Capacity
Use preemptible instances for batch and ephemeral workloads
Keep interruption-tolerant autoscaling groups
Mix with standard capacity for critical services
Tagging Strategy
AWS Tagging locals {
common_tags = {
Environment = "production"
Project = "my-project"
CostCenter = "engineering"
Owner = "[email protected] "
ManagedBy = "terraform"
}
}
resource "aws_instance" "example" {
ami = "ami-12345678"
instance_type = "t3.medium"
tags = merge(
local.common_tags,
{
Name = "web-server"
}
)
}
Reference: See references/tagging-standards.md
Cost Monitoring
Budget Alerts # AWS Budget
resource "aws_budgets_budget" "monthly" {
name = "monthly-budget"
budget_type = "COST"
limit_amount = "1000"
limit_unit = "USD"
time_period_start = "2024-01-01_00:00"
time_unit = "MONTHLY"
notification {
comparison_operator = "GREATER_THAN"
threshold = 80
threshold_type = "PERCENTAGE"
notification_type = "ACTUAL"
subscriber_email_addresses = ["[email protected] "]
}
}
Cost Anomaly Detection
AWS Cost Anomaly Detection
Azure Cost Management alerts
GCP Budget alerts
OCI Budgets and Cost Analysis
Architecture Patterns
Pattern 1: Serverless First
Use Lambda/Functions for event-driven
Pay only for execution time
Auto-scaling included
No idle costs
Pattern 2: Right-Sized Databases Development: t3.small RDS
Staging: t3.large RDS
Production: r6g.2xlarge RDS with read replicas
Pattern 3: Multi-Tier Storage Hot data: S3 Standard
Warm data: S3 Standard-IA (30 days)
Cold data: S3 Glacier (90 days)
Archive: S3 Deep Archive (365 days)
Pattern 4: Auto-Scaling resource "aws_autoscaling_policy" "scale_up" {
name = "scale-up"
scaling_adjustment = 2
adjustment_type = "ChangeInCapacity"
cooldown = 300
autoscaling_group_name = aws_autoscaling_group.main.name
}
resource "aws_cloudwatch_metric_alarm" "cpu_high" {
alarm_name = "cpu-high"
comparison_operator = "GreaterThanThreshold"
evaluation_periods = "2"
metric_name = "CPUUtilization"
namespace = "AWS/EC2"
period = "60"
statistic = "Average"
threshold = "80"
alarm_actions = [aws_autoscaling_policy.scale_up.arn]
}
Cost Optimization Checklist
Tools
AWS: Cost Explorer, Cost Anomaly Detection, Compute Optimizer
Azure: Cost Management, Advisor
GCP: Cost Management, Recommender
OCI: Cost Analysis, Budgets, Cloud Advisor
Multi-cloud: CloudHealth, Cloudability, Kubecost
Related Skills
terraform-module-library - For resource provisioning
multi-cloud-architecture - For cloud selection
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Create or update AgentSkills. Use when designing, structuring, or packaging skills with scripts, references, and assets.
Create or update AgentSkills. Use when designing, structuring, or packaging skills with scripts, references, and assets.
Set up and use 1Password CLI (op). Use when installing the CLI, enabling desktop app integration, signing in (single or multi-account), or reading/injecting/running secrets via op.
CLI to manage emails via IMAP/SMTP. Use `himalaya` to list, read, write, reply, forward, search, and organize emails from the terminal. Supports multiple accounts and message composition with MML (MIME Meta Language).