Cloud Cost Optimization

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Optimize cloud costs across AWS, Azure, and GCP using resource rightsizing, tagging strategies, reserved instances, and spending analysis. Helps when reducing cloud expenses, analyzing infrastructure costs, or implementing cost governance.

Sby Skills Guide Bot
DevOpsIntermediate
706/2/2026
Claude Code
#cloud-cost#aws#azure#gcp#optimization

Recommended for

Our review

This skill provides strategies and patterns for optimizing cloud costs across AWS, Azure, and GCP, focusing on resource right-sizing, pricing models, and cost governance.

Strengths

  • Multi-cloud coverage (AWS, Azure, GCP) with specific guidance for each provider.
  • Structured approach with a four-step framework: visibility, right-sizing, pricing models, and architecture.
  • Concrete code examples using Terraform and configuration (S3 lifecycle, tagging).
  • Includes advanced strategies such as spot instances, reservations, and savings plans.

Limitations

  • Does not provide automated financial analysis; requires existing usage data.
  • Examples are mainly AWS-oriented, with less detail for Azure and GCP.
  • Recommendations are generic and may need adaptation to specific environments.
When to use it

Use this skill when you need to reduce cloud spending, analyze infrastructure costs, or implement cost governance.

When not to use it

Do not use this skill if the task is unrelated to cloud cost optimization or if it requires specialized domains like security or advanced architecture.

Security analysis

Safe
Quality score85/100

The skill provides advisory cloud cost optimization guidance and Terraform examples. It contains no executable commands, destructive actions, or data exfiltration risks.

No concerns found

Examples

AWS Cost Optimization Analysis
Analyze my AWS account usage and suggest ways to reduce costs using reserved instances, spot instances, and right-sizing recommendations.
Azure Reserved Instances Strategy
Recommend a strategy for Azure reserved VM instances including hybrid benefit options and sizing flexibility to maximize savings.
GCP Committed Use Discounts
I want to reduce my GCP Compute Engine costs. Suggest how to leverage committed use discounts and sustained use discounts with example configurations.

name: cost-optimization description: "Optimize cloud costs through resource rightsizing, tagging strategies, reserved instances, and spending analysis. Use when reducing cloud expenses, analyzing infrastructure costs, or implementing c..." metadata: author: ncdevshiv version: "1.0" category: other updated: 2026-02-25 risk: unknown source: community

Cloud Cost Optimization

Strategies and patterns for optimizing cloud costs across AWS, Azure, and GCP.

Do not use this skill when

  • The task is unrelated to cloud cost optimization
  • You need a different domain or tool outside this scope

Instructions

  • Clarify goals, constraints, and required inputs.
  • Apply relevant best practices and validate outcomes.
  • Provide actionable steps and verification.
  • If detailed examples are required, open resources/implementation-playbook.md.

Purpose

Implement systematic cost optimization strategies to reduce cloud spending while maintaining performance and reliability.

Use this skill when

  • 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

Tagging Strategy

AWS Tagging

locals {
  common_tags = {
    Environment = "production"
    Project     = "my-project"
    CostCenter  = "engineering"
    Owner       = "team@example.com"
    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 = ["team@example.com"]
  }
}

Cost Anomaly Detection

  • AWS Cost Anomaly Detection
  • Azure Cost Management alerts
  • GCP Budget alerts

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

  • [ ] Implement cost allocation tags
  • [ ] Delete unused resources (EBS, EIPs, snapshots)
  • [ ] Right-size instances based on utilization
  • [ ] Use reserved capacity for steady workloads
  • [ ] Implement auto-scaling
  • [ ] Optimize storage classes
  • [ ] Use lifecycle policies
  • [ ] Enable cost anomaly detection
  • [ ] Set budget alerts
  • [ ] Review costs weekly
  • [ ] Use spot/preemptible instances
  • [ ] Optimize data transfer costs
  • [ ] Implement caching layers
  • [ ] Use managed services
  • [ ] Monitor and optimize continuously

Tools

  • AWS: Cost Explorer, Cost Anomaly Detection, Compute Optimizer
  • Azure: Cost Management, Advisor
  • GCP: Cost Management, Recommender
  • Multi-cloud: CloudHealth, Cloudability, Kubecost

Reference Files

  • references/tagging-standards.md - Tagging conventions
  • assets/cost-analysis-template.xlsx - Cost analysis spreadsheet

Related Skills

  • terraform-module-library - For resource provisioning
  • multi-cloud-architecture - For cloud selection
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