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Cloud Cost Analysis
Analyze and optimize cloud infrastructure costs — identifying waste, right-sizing resources, evaluating reserved vs on-demand pricing, and producing savings roadmaps with ROI projections.
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cloud-cost-analysis/
aws-quarterly-review.md
Markdown| 1 | # Q4 2025 AWS Cost Analysis — Relay Logistics |
| 2 | |
| 3 | ## Spend Summary |
| 4 | |
| 5 | Analysis period: October-December 2025. Account: relay-prod (ID 481923756012). |
| 6 | |
| 7 | | Service | Monthly Cost | % of Total | Trend (3mo) | |
| 8 | |------------------|-------------|------------|-------------| |
| 9 | | EC2 / Compute | $67,400 | 41% | +18% | |
| 10 | | RDS (PostgreSQL) | $34,200 | 21% | +6% | |
| 11 | | S3 / Storage | $19,800 | 12% | +14% | |
| 12 | | Data Transfer | $16,500 | 10% | +31% | |
| 13 | | ElastiCache | $11,300 | 7% | flat | |
| 14 | | Other | $14,800 | 9% | +4% | |
| 15 | | **Total** | **$164,000**| **100%** | **+14%** | |
| 16 | |
| 17 | Data transfer is the fastest-growing category. Cross-AZ traffic between the API tier and RDS accounts for $9,200/mo of the $16,500. |
| 18 | |
| 19 | ## Waste Identification |
| 20 | |
| 21 | | Resource | Type | Issue | Monthly Cost | Est. Savings | |
| 22 | |----------|------|-------|-------------|-------------| |
| 23 | | 14 unattached EBS volumes | gp3 | Orphaned after Nov migration | $840 | $840 | |
| 24 | | staging-api (3 instances) | m5.xlarge | Running 24/7, used Mon-Fri 9-6 | $1,620 | $1,050 | |
| 25 | | qa-db-cluster | db.r5.2xlarge | 4% avg CPU, <1 GB data | $2,100 | $1,680 | |
| 26 | | route-optimizer-snapshots | EBS snapshots | 340 daily snapshots, no lifecycle policy | $1,900 | $1,520 | |
| 27 | | demo-environment | Full stack | Last accessed Sept 12, running since July | $3,200 | $3,200 | |
| 28 | |
| 29 | **Total identifiable waste: $8,290/month ($99,480/year)** |
| 30 | |
| 31 | ## Right-Sizing Recommendations |
| 32 | |
| 33 | Based on 30-day CloudWatch metrics (Nov 15 - Dec 15): |
| 34 | |
| 35 | | Resource | Current | Avg CPU | Avg Mem | Recommended | Monthly Savings | |
| 36 | |----------|---------|---------|---------|-------------|-----------------| |
| 37 | | api-prod-1 through api-prod-4 | m5.2xlarge | 14% | 31% | m5.xlarge | $720 (x4 = $2,880) | |
| 38 | | shipment-worker-1..3 | c5.4xlarge | 11% | 18% | c5.xlarge | $460 (x3 = $1,380) | |
| 39 | | analytics-db-replica | db.r5.4xlarge | 19% | 42% | db.r5.2xlarge | $1,040 | |
| 40 | | cache-routing | cache.r5.2xlarge | 8% | 22% | cache.r5.large | $680 | |
| 41 | |
| 42 | **Total right-sizing opportunity: $5,980/month** |
| 43 | |
| 44 | ## Pricing Model Optimization |
| 45 | |
| 46 | Current mix: 92% on-demand, 8% reserved (legacy 1-year RIs expiring March 2026). |
| 47 | |
| 48 | - **Compute Savings Plan (1-year):** Commit $28/hr based on floor utilization across all regions. Projected savings: $8,400/mo (31% discount vs. on-demand). |
| 49 | - **RDS Reserved Instances (1-year):** Reserve the primary db.r5.2xlarge (recommended post-downsize) and two read replicas. Break-even at month 8. Savings: $4,100/mo. |
| 50 | - **Spot for batch workers:** The route-optimizer fleet (6 c5.2xlarge) is fault-tolerant with checkpointing. Spot discount at current pricing: 68%. Savings: $3,800/mo with 2-minute interruption handling already in place. |
| 51 | - **Staging scheduling:** Stop staging-api and staging-worker nightly 7 PM - 7 AM and weekends. Savings: $1,050/mo. |
| 52 | |
| 53 | ## Savings Roadmap |
| 54 | |
| 55 | | Priority | Action | Monthly Savings | Effort | Timeline | |
| 56 | |----------|--------|----------------|--------|----------| |
| 57 | | P0 | Delete 14 orphaned EBS volumes | $840 | 1 hour | This week | |
| 58 | | P0 | Shut down demo environment | $3,200 | 1 hour | This week | |
| 59 | | P0 | Add snapshot lifecycle policy (keep 7 days) | $1,520 | 2 hours | This week | |
| 60 | | P0 | Schedule staging environments | $1,050 | 1 day | This week | |
| 61 | | P1 | Right-size api-prod instances (m5.xlarge) | $2,880 | 3 days | 2 weeks | |
| 62 | | P1 | Purchase 1-year Compute Savings Plan | $8,400 | 1 day | 30 days | |
| 63 | | P1 | Reserve downsized RDS instances | $4,100 | 1 day | 30 days | |
| 64 | | P2 | Move route-optimizer to spot fleet | $3,800 | 1 sprint | 60 days | |
| 65 | | P2 | Right-size remaining instances | $3,100 | 1 week | 60 days | |
| 66 | | P2 | Move cross-AZ traffic to same-AZ placement | $4,600 | 2 sprints | 90 days | |
| 67 | |
| 68 | ## ROI Projection |
| 69 | |
| 70 | - **Quick wins (week 1):** $6,610/mo savings, 0 engineering days |
| 71 | - **Medium-term (30 days):** $21,890/mo cumulative, ~5 engineering days ($4,000 implementation cost) |
| 72 | - **Full realization (90 days):** $33,490/mo = **$401,880/year**, ~22 engineering days ($17,600 implementation cost) |
| 73 | - **Net first-year savings:** $384,280 (after implementation cost) |
| 74 | - **Spend reduction:** 20.4% of current monthly bill |
| 75 |