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A structured method to reduce costs in cloud, service and product contexts through governance, engineering and FinOps practices.
Cost Optimization is a structured method to identify, prioritize and reduce unnecessary spend across cloud environments, managed services and product development. It combines governance, engineering and FinOps practices, including tagging, cost allocation and rightsizing, to align cost decisions with business priorities. Applicable for teams operating cloud services and P&L accountable units.
Sum of all relevant operational costs over a defined period.
Assignable costs at product or service level to evaluate economics.
Monetized savings achieved by concrete actions.
A team implemented tagging, rightsizing and automated shutdown rules and achieved measurable savings within a quarter.
In new development, cost was considered as a non‑functional requirement, resulting in lower operational costs.
Regular optimization cycles with KPIs and clear ownership improved cost transparency and reduced waste.
Initial analysis of billing data and identification of hotspots
Define tagging standards, cost ownership and KPIs
Automate routine optimizations (e.g., shutdowns, rightsizing)
Establish governance cycles and regular review meetings