Cost-Optimization

Your AWS bill is too high. Everyone’s is. The cloud makes it trivially easy to spin up resources and surprisingly hard to know what you’re actually paying for. Here’s how to stop the bleeding. The Low-Hanging Fruit Unused Resources The easiest savings come from things you’re not using. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 # Find unattached EBS volumes aws ec2 describe-volumes \ --filters Name=status,Values=available \ --query 'Volumes[*].[VolumeId,Size,CreateTime]' \ --output table # Find unused Elastic IPs aws ec2 describe-addresses \ --query 'Addresses[?AssociationId==`null`].[PublicIp,AllocationId]' \ --output table # Find idle load balancers (no healthy targets) aws elbv2 describe-target-health \ --query 'TargetHealthDescriptions[?TargetHealth.State!=`healthy`]' Run these monthly. You’ll find forgotten resources every time. ...

Your cloud bill is too high. It always is. Here’s how to actually reduce it without breaking things. Quick Wins 1. Find Unused Resources 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 # AWS: Find unattached EBS volumes aws ec2 describe-volumes \ --filters Name=status,Values=available \ --query 'Volumes[*].[VolumeId,Size,CreateTime]' \ --output table # Find old snapshots (>90 days) aws ec2 describe-snapshots --owner-ids self \ --query 'Snapshots[?StartTime<=`2026-01-01`].[SnapshotId,VolumeSize,StartTime]' \ --output table # Find unattached Elastic IPs aws ec2 describe-addresses \ --query 'Addresses[?AssociationId==`null`].[PublicIp,AllocationId]' \ --output table Delete them. Unattached EBS volumes cost money. Unused EIPs cost $3.65/month each. ...

Cloud bills grow faster than you’d expect. A few forgotten instances here, oversized databases there, and suddenly you’re spending more on infrastructure than engineering salaries. Let’s fix that. Quick Wins: Find the Waste Identify Unused Resources 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 # find_waste.py import boto3 from datetime import datetime, timedelta ec2 = boto3.client('ec2') cloudwatch = boto3.client('cloudwatch') def find_idle_instances(): """Find EC2 instances with <5% CPU over 7 days.""" instances = ec2.describe_instances( Filters=[{'Name': 'instance-state-name', 'Values': ['running']}] ) idle = [] for reservation in instances['Reservations']: for instance in reservation['Instances']: instance_id = instance['InstanceId'] # Get average CPU over 7 days response = cloudwatch.get_metric_statistics( Namespace='AWS/EC2', MetricName='CPUUtilization', Dimensions=[{'Name': 'InstanceId', 'Value': instance_id}], StartTime=datetime.utcnow() - timedelta(days=7), EndTime=datetime.utcnow(), Period=86400, # 1 day Statistics=['Average'] ) if response['Datapoints']: avg_cpu = sum(d['Average'] for d in response['Datapoints']) / len(response['Datapoints']) if avg_cpu < 5: idle.append({ 'instance_id': instance_id, 'type': instance['InstanceType'], 'avg_cpu': round(avg_cpu, 2), 'name': next((t['Value'] for t in instance.get('Tags', []) if t['Key'] == 'Name'), 'unnamed') }) return idle def find_unattached_volumes(): """Find EBS volumes not attached to any instance.""" volumes = ec2.describe_volumes( Filters=[{'Name': 'status', 'Values': ['available']}] ) return [{ 'volume_id': v['VolumeId'], 'size_gb': v['Size'], 'monthly_cost': v['Size'] * 0.10 # gp2 pricing estimate } for v in volumes['Volumes']] def find_old_snapshots(): """Find snapshots older than 90 days.""" snapshots = ec2.describe_snapshots(OwnerIds=['self']) cutoff = datetime.utcnow() - timedelta(days=90) old = [] for snap in snapshots['Snapshots']: if snap['StartTime'].replace(tzinfo=None) < cutoff: old.append({ 'snapshot_id': snap['SnapshotId'], 'size_gb': snap['VolumeSize'], 'age_days': (datetime.utcnow() - snap['StartTime'].replace(tzinfo=None)).days }) return old # Run analysis print("=== Idle Instances ===") for i in find_idle_instances(): print(f" {i['instance_id']} ({i['type']}): {i['avg_cpu']}% avg CPU - {i['name']}") print("\n=== Unattached Volumes ===") for v in find_unattached_volumes(): print(f" {v['volume_id']}: {v['size_gb']}GB = ${v['monthly_cost']:.2f}/mo") print("\n=== Old Snapshots ===") for s in find_old_snapshots(): print(f" {s['snapshot_id']}: {s['size_gb']}GB, {s['age_days']} days old") Automated Cleanup 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 # cleanup_automation.py import boto3 from datetime import datetime, timedelta def cleanup_old_amis(days_old: int = 180, dry_run: bool = True): """Deregister AMIs older than threshold and delete their snapshots.""" ec2 = boto3.client('ec2') images = ec2.describe_images(Owners=['self']) cutoff = datetime.utcnow() - timedelta(days=days_old) for image in images['Images']: creation_date = datetime.strptime(image['CreationDate'][:10], '%Y-%m-%d') if creation_date < cutoff: ami_id = image['ImageId'] snapshot_ids = [ bdm['Ebs']['SnapshotId'] for bdm in image.get('BlockDeviceMappings', []) if 'Ebs' in bdm ] if dry_run: print(f"Would delete AMI {ami_id} and snapshots {snapshot_ids}") else: ec2.deregister_image(ImageId=ami_id) for snap_id in snapshot_ids: ec2.delete_snapshot(SnapshotId=snap_id) print(f"Deleted AMI {ami_id} and {len(snapshot_ids)} snapshots") def stop_dev_instances_at_night(): """Stop non-production instances outside business hours.""" ec2 = boto3.resource('ec2') # Find instances tagged Environment=dev|staging instances = ec2.instances.filter( Filters=[ {'Name': 'tag:Environment', 'Values': ['dev', 'staging']}, {'Name': 'instance-state-name', 'Values': ['running']} ] ) instance_ids = [i.id for i in instances] if instance_ids: ec2.instances.filter(InstanceIds=instance_ids).stop() print(f"Stopped {len(instance_ids)} dev/staging instances") 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 # Lambda + EventBridge for scheduled cleanup AWSTemplateFormatVersion: '2010-09-09' Resources: StopDevInstancesFunction: Type: AWS::Lambda::Function Properties: FunctionName: stop-dev-instances Runtime: python3.11 Handler: index.handler Timeout: 60 Role: !GetAtt LambdaRole.Arn Code: ZipFile: | import boto3 def handler(event, context): ec2 = boto3.resource('ec2') instances = ec2.instances.filter( Filters=[ {'Name': 'tag:AutoStop', 'Values': ['true']}, {'Name': 'instance-state-name', 'Values': ['running']} ] ) ids = [i.id for i in instances] if ids: ec2.instances.filter(InstanceIds=ids).stop() return {'stopped': ids} StopSchedule: Type: AWS::Events::Rule Properties: ScheduleExpression: 'cron(0 22 ? * MON-FRI *)' # 10 PM weekdays Targets: - Id: StopDevInstances Arn: !GetAtt StopDevInstancesFunction.Arn Right-Sizing Analyze and Recommend 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 # rightsizing.py import boto3 def get_rightsizing_recommendations(): """Get AWS Compute Optimizer recommendations.""" optimizer = boto3.client('compute-optimizer') response = optimizer.get_ec2_instance_recommendations() savings = [] for rec in response.get('instanceRecommendations', []): current = rec['currentInstanceType'] for option in rec.get('recommendationOptions', []): if option.get('rank') == 1: # Top recommendation recommended = option['instanceType'] monthly_savings = ( rec.get('utilizationMetrics', [{}])[0].get('value', 0) * option.get('projectedUtilizationMetrics', [{}])[0].get('value', 1) ) savings.append({ 'instance_id': rec['instanceArn'].split('/')[-1], 'current': current, 'recommended': recommended, 'finding': rec['finding'], 'estimated_savings': option.get('savingsOpportunity', {}) }) return savings # Generate report for rec in get_rightsizing_recommendations(): print(f"{rec['instance_id']}: {rec['current']} → {rec['recommended']}") print(f" Finding: {rec['finding']}") if rec['estimated_savings']: print(f" Potential savings: ${rec['estimated_savings'].get('estimatedMonthlySavings', {}).get('value', 0):.2f}/mo") Reserved Instances & Savings Plans Analyze Coverage 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 # reservation_analysis.py import boto3 from collections import defaultdict def analyze_reservation_coverage(): """Analyze current RI/SP coverage and recommend purchases.""" ce = boto3.client('ce') # Get coverage report response = ce.get_reservation_coverage( TimePeriod={ 'Start': '2026-01-01', 'End': '2026-02-01' }, Granularity='MONTHLY', GroupBy=[ {'Type': 'DIMENSION', 'Key': 'INSTANCE_TYPE'} ] ) recommendations = [] for group in response.get('CoveragesByTime', [{}])[0].get('Groups', []): instance_type = group['Attributes']['instanceType'] coverage = float(group['Coverage']['CoverageHours']['CoverageHoursPercentage']) on_demand_hours = float(group['Coverage']['CoverageHours']['OnDemandHours']) if coverage < 70 and on_demand_hours > 500: recommendations.append({ 'instance_type': instance_type, 'current_coverage': coverage, 'on_demand_hours': on_demand_hours, 'recommendation': 'Consider Reserved Instances' }) return recommendations def get_savings_plan_recommendations(): """Get Savings Plan purchase recommendations.""" ce = boto3.client('ce') response = ce.get_savings_plans_purchase_recommendation( SavingsPlansType='COMPUTE_SP', TermInYears='ONE_YEAR', PaymentOption='NO_UPFRONT', LookbackPeriodInDays='THIRTY_DAYS' ) rec = response.get('SavingsPlansPurchaseRecommendation', {}) return { 'recommended_hourly_commitment': rec.get('SavingsPlansPurchaseRecommendationSummary', {}).get('RecommendedHourlyCommitment'), 'estimated_monthly_savings': rec.get('SavingsPlansPurchaseRecommendationSummary', {}).get('EstimatedMonthlySavingsAmount'), 'estimated_savings_percentage': rec.get('SavingsPlansPurchaseRecommendationSummary', {}).get('EstimatedSavingsPercentage') } Spot Instances Spot for Stateless Workloads 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 # Kubernetes with Spot instances via Karpenter apiVersion: karpenter.sh/v1alpha5 kind: Provisioner metadata: name: spot-provisioner spec: requirements: - key: karpenter.sh/capacity-type operator: In values: ["spot"] - key: kubernetes.io/arch operator: In values: ["amd64"] - key: node.kubernetes.io/instance-type operator: In values: ["m5.large", "m5.xlarge", "m5a.large", "m5a.xlarge", "m6i.large"] # Spread across instance types for availability limits: resources: cpu: 1000 # Handle interruptions gracefully ttlSecondsAfterEmpty: 30 ttlSecondsUntilExpired: 2592000 # 30 days --- # Deployment using spot nodes apiVersion: apps/v1 kind: Deployment metadata: name: worker spec: replicas: 10 template: spec: nodeSelector: karpenter.sh/capacity-type: spot # Handle spot interruptions terminationGracePeriodSeconds: 120 containers: - name: worker lifecycle: preStop: exec: command: ["/bin/sh", "-c", "sleep 90"] # Drain gracefully Spot Interruption Handling 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 # spot_interruption_handler.py import requests import time import signal import sys METADATA_URL = "http://169.254.169.254/latest/meta-data" def check_spot_interruption(): """Check if this spot instance is being interrupted.""" try: response = requests.get( f"{METADATA_URL}/spot/instance-action", timeout=1 ) if response.status_code == 200: return response.json() except: pass return None def graceful_shutdown(): """Handle graceful shutdown on interruption.""" print("Spot interruption detected, starting graceful shutdown...") # Stop accepting new work # Finish current tasks # Checkpoint state # Clean up sys.exit(0) def monitor_interruption(): """Monitor for spot interruption (2 minute warning).""" while True: interruption = check_spot_interruption() if interruption: print(f"Interruption notice: {interruption}") graceful_shutdown() time.sleep(5) # Run in background thread import threading threading.Thread(target=monitor_interruption, daemon=True).start() Storage Optimization S3 Lifecycle Policies 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 # s3_lifecycle.py import boto3 def configure_lifecycle_rules(bucket_name: str): """Configure intelligent tiering and expiration.""" s3 = boto3.client('s3') lifecycle_config = { 'Rules': [ { 'ID': 'intelligent-tiering', 'Status': 'Enabled', 'Filter': {'Prefix': ''}, 'Transitions': [ { 'Days': 0, 'StorageClass': 'INTELLIGENT_TIERING' } ] }, { 'ID': 'archive-old-logs', 'Status': 'Enabled', 'Filter': {'Prefix': 'logs/'}, 'Transitions': [ {'Days': 30, 'StorageClass': 'STANDARD_IA'}, {'Days': 90, 'StorageClass': 'GLACIER'}, ], 'Expiration': {'Days': 365} }, { 'ID': 'cleanup-incomplete-uploads', 'Status': 'Enabled', 'Filter': {'Prefix': ''}, 'AbortIncompleteMultipartUpload': { 'DaysAfterInitiation': 7 } } ] } s3.put_bucket_lifecycle_configuration( Bucket=bucket_name, LifecycleConfiguration=lifecycle_config ) Cost Monitoring Budget Alerts 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 # CloudFormation budget AWSTemplateFormatVersion: '2010-09-09' Resources: MonthlyBudget: Type: AWS::Budgets::Budget Properties: Budget: BudgetName: monthly-infrastructure BudgetLimit: Amount: 10000 Unit: USD TimeUnit: MONTHLY BudgetType: COST NotificationsWithSubscribers: - Notification: NotificationType: ACTUAL ComparisonOperator: GREATER_THAN Threshold: 80 Subscribers: - SubscriptionType: EMAIL Address: ops@example.com - Notification: NotificationType: FORECASTED ComparisonOperator: GREATER_THAN Threshold: 100 Subscribers: - SubscriptionType: SNS Address: !Ref AlertTopic Daily Cost Report 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 # daily_cost_report.py import boto3 from datetime import datetime, timedelta def get_daily_costs(): """Get costs broken down by service.""" ce = boto3.client('ce') end = datetime.utcnow().date() start = end - timedelta(days=7) response = ce.get_cost_and_usage( TimePeriod={ 'Start': start.isoformat(), 'End': end.isoformat() }, Granularity='DAILY', Metrics=['UnblendedCost'], GroupBy=[ {'Type': 'DIMENSION', 'Key': 'SERVICE'} ] ) report = [] for day in response['ResultsByTime']: date = day['TimePeriod']['Start'] for group in day['Groups']: service = group['Keys'][0] cost = float(group['Metrics']['UnblendedCost']['Amount']) if cost > 1: # Only show significant costs report.append({ 'date': date, 'service': service, 'cost': cost }) return report # Generate and send report for item in sorted(get_daily_costs(), key=lambda x: -x['cost'])[:10]: print(f"{item['date']} | {item['service']}: ${item['cost']:.2f}") Checklist Enable Cost Explorer and set up budgets Tag all resources for cost allocation Review and act on right-sizing recommendations monthly Implement lifecycle policies for S3 and EBS snapshots Use Spot for fault-tolerant workloads Purchase Savings Plans for baseline compute Stop dev/staging resources outside business hours Clean up unused resources weekly Review Reserved Instance coverage quarterly Cloud cost optimization isn’t a one-time project—it’s an ongoing practice. Automate the easy wins, review monthly, and treat your cloud bill like any other metric that matters. ...