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Cloud

Infrastructure Cost Optimization

Analyzed and optimized cloud infrastructure spending for an e-commerce company, implementing right-sizing, reserved instances, and automated scheduling to achieve $200K+ annual savings.

AWSCost ExplorerPythonTerraformLambdaCloudWatch

💲 The Problem: Runaway Cloud Costs

An e-commerce company was experiencing rapidly growing AWS bills – increasing 40% year-over-year – with no visibility into what was driving the spend. Teams were over-provisioning "just in case" and nobody owned cost optimization.

$800K+ Annual AWS Bill
40% YoY Growth
0% Reserved Coverage
24/7 Non-Prod Running

🔍 Cost Analysis Approach

I conducted a comprehensive cost analysis using AWS Cost Explorer, billing data exports, and custom Python scripts to identify optimization opportunities:

📊
Data Collection Cost Explorer API, CUR exports, resource inventory
→
🔬
Analysis By service, account, tag, time patterns
→
💡
Recommendations Right-sizing, scheduling, purchasing
→
💰
Savings $200K+ annually

⚙️ Optimization Strategies Implemented

📏 Right-Sizing
Saved: $65K/year
  • Analyzed CloudWatch metrics for CPU, memory, network
  • Identified 60% of instances running at <20% utilization
  • Downsized from m5.2xlarge to m5.large where applicable
  • Moved memory-light workloads to T3 burstable
📅 Reserved Instances
Saved: $80K/year
  • Analyzed 12-month usage patterns
  • Purchased 1-year partial upfront RIs for stable workloads
  • Used Savings Plans for flexible compute
  • Achieved 70% coverage on EC2 spend
⏰ Automated Scheduling
Saved: $40K/year
  • Built Lambda functions to stop dev/staging at night
  • Weekend shutdowns for non-production
  • Tag-based opt-in/opt-out mechanism
  • Slack notifications before shutdown
🗑️ Waste Elimination
Saved: $25K/year
  • Deleted 2TB of orphaned EBS volumes
  • Removed unused Elastic IPs ($3.65/month each)
  • Cleaned up old snapshots (>90 days)
  • Terminated zombie resources

🤖 Cost Automation Architecture

To maintain savings long-term, I built automated cost governance:

⚡ Instance Scheduler

Lambda functions triggered by CloudWatch Events to start/stop tagged resources on schedule.

Python + Lambda + EventBridge
📈 Cost Anomaly Detection

AWS Cost Anomaly Detection with Slack alerts for unexpected spend spikes.

Cost Explorer + SNS + Lambda
📊 Weekly Cost Reports

Automated cost breakdown emails to stakeholders every Monday.

Python + SES + QuickSight
🏷️ Tagging Compliance

AWS Config rules enforce mandatory tags; non-compliant resources flagged.

AWS Config + Lambda

📊 Cost Visibility Dashboard

Built a centralized cost visibility solution enabling teams to understand and own their spend:

📈
Trend Analysis Month-over-month and year-over-year cost trends
🏷️
Cost Allocation Breakdown by team, environment, application tag
🔮
Forecasting Projected spend based on current trajectory
⚠️
Budget Alerts Team-specific budgets with threshold notifications

🏆 Results Achieved

$200K+ Annual Savings
Reserved Instances
$80K
Right-Sizing
$65K
Scheduling
$40K
Waste Cleanup
$25K
📉
35% Cost Reduction

Without impacting performance or availability

👁️
100% Visibility

Every dollar attributed to a team/application

🔄
Sustained Savings

Automation prevents cost creep

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