Case study 082022
Cloud Cost Program
A 41% cut in AWS spend with no loss of reliability, by making cost visible to the teams who create it.
- Role
- Program lead
- Team
- Platform team + 6 service teams
- Timeline
- 5 months
- Focus
- Platform
−41%
AWS spend
$1.2M
saved per year
40% → 3%
untagged spend
The problem
The bill was one number that finance reviewed once a quarter. Untagged resources made up 40% of spend, staging ran around the clock, and every team assumed the cost belonged to someone else.
What I owned
- A tagging policy enforced in Terraform and CI, and cost attribution per team and per service.
- Weekly cost reports and anomaly alerts for every team.
- The savings backlog, ranked by dollars saved per engineering day.
- The largest changes: the Graviton migration, spot nodes for batch work and Kubernetes rightsizing.
Key decisions
- 1
Show cost to the people who create it
Once each team saw its weekly spend next to its SLOs, most of the waste was removed by its owners without being asked.
- 2
Rank work by dollars per day
Every idea was estimated for savings and effort. The top ten items delivered most of the reduction in the first two months.
- 3
Reliability is the constraint, not the target
Every change had to hold existing SLOs. Spot instances went to batch and CI work only, never to paths that serve requests.
Outcome
The bill fell 41% in five months and has grown more slowly than usage since. Teams now review their own cost weekly, with alerts when something spikes.
- AWS
- Terraform
- Kubernetes
- Karpenter
- Graviton
- Grafana