5 cloud cost hacks every engineer should steal before their next bill shock

why cloud costs can spiral out of control (and how to stop it)

cloud services are a game-changer for engineers and developers, offering scalability, flexibility, and powerful tools at your fingertips. but with great power comes... a surprisingly large bill at the end of the month. if you've ever opened your cloud provider's invoice and felt your heart skip a beat, you're not alone.

cloud cost optimization isn't just for finance teams—it's a critical skill for devops, full stack developers, and engineers at every level. the good news? small tweaks can lead to massive savings. let’s dive into five actionable hacks to keep your cloud costs in check without sacrificing performance.

1. right-size your resources: the goldilocks principle

one of the biggest mistakes engineers make is over-provisioning resources. that "just in case" extra cpu or memory might seem harmless, but it adds up fast. here’s how to find the sweet spot:

how to right-size like a pro

• monitor usage patterns: use tools like aws cloudwatch, google cloud monitoring, or azure monitor to track cpu, memory, and disk usage over time. look for trends—are your resources idle 90% of the time?
• start small, scale smart: begin with the smallest instance that meets your needs, then scale up only when necessary. for example, if you're running a small web app, a t3.micro instance on aws might be plenty to start.
• use auto-scaling: configure auto-scaling groups to automatically adjust resources based on demand. here’s a quick example for aws auto scaling:

<!-- example aws auto scaling policy -->
{
  "targetvalue": 70.0,
  "predefinedmetricspecification": {
    "predefinedmetrictype": "asgaveragecpuutilization"
  },
  "scaleoutcooldown": 300,
  "scaleincooldown": 300
}

this policy scales your instances when cpu utilization hits 70%, ensuring you’re not paying for unused capacity.

2. leverage spot instances for non-critical workloads

spot instances are one of the best-kept secrets for slashing cloud costs. these are spare compute capacity offered by cloud providers at a fraction of the on-demand price—sometimes up to 90% off. the catch? they can be terminated with little notice if the provider needs the capacity back.

when to use spot instances

• batch processing: jobs like data analysis, rendering, or ci/cd pipelines that can be interrupted and resumed.
• stateless applications: workloads where losing an instance isn’t catastrophic (e.g., web servers behind a load balancer).
• testing and development: non-production environments where uptime isn’t critical.

how to implement spot instances

here’s a simple terraform snippet to launch a spot instance on aws:

resource "aws_spot_instance_request" "cheap_worker" {
  ami           = "ami-0c55b159cbfafe1f0"
  instance_type = "t3.medium"
  spot_price    = "0.02"
  wait_for_fulfillment = true

  tags = {
    name = "spot-instance-worker"
  }
}

pro tip: use spot fleets to diversify across multiple instance types and availability zones, reducing the risk of interruptions.

3. optimize storage costs: don’t pay for what you don’t need

storage costs can quietly balloon if you’re not careful. here’s how to keep them under control:

storage cost hacks

• use the right storage class:
  • hot storage (frequent access): use ssd-backed storage (e.g., aws ebs gp3, google persistent disk) for databases or active applications.
  • cold storage (rare access): move old logs, backups, or archives to cheaper options like aws s3 glacier or google coldline storage. here’s how to set a lifecycle policy in aws s3:

<!-- example s3 lifecycle policy -->
{
  "rules": [
    {
      "id": "movetoglacierafter30days",
      "status": "enabled",
      "filter": {
        "prefix": "logs/"
      },
      "transitions": [
        {
          "days": 30,
          "storageclass": "glacier"
        }
      ]
    }
  ]
}

• delete unused snapshots: old ebs snapshots or disk images can linger and rack up costs. set up automated cleanup policies or use tools like aws trusted advisor to identify unused resources.
• compress data: before storing large datasets, compress them to reduce storage footprint. for example, use gzip for logs or parquet for analytics data.

4. automate shutdowns for non-production environments

how often do your staging or development environments sit idle overnight or on weekends? if you’re not automating shutdowns, you’re burning money. here’s how to fix it:

automate shutdowns with cloud scheduler

most cloud providers offer tools to schedule start/stop times for your instances. for example, in google cloud, you can use cloud scheduler to trigger a cloud function that shuts down instances at 7 pm and starts them at 8 am:

// example google cloud function to stop instances
const compute = require('@google-cloud/compute');
const compute = new compute();

exports.stopinstances = async (pubsubevent, context) => {
  const instances = await compute.getvms();
  for (const instance of instances) {
    if (instance.name.startswith('dev-')) {
      await instance.stop();
      console.log(`stopped ${instance.name}`);
    }
  }
};

alternative: use infrastructure as code (iac)

if you’re using terraform or aws cloudformation, you can define schedules directly in your templates. here’s an example using terraform with aws:

resource "aws_instance" "dev_server" {
  ami           = "ami-0c55b159cbfafe1f0"
  instance_type = "t3.micro"

  tags = {
    name = "dev-server"
    autoshutdown = "true"
  }
}

resource "aws_cloudwatch_event_rule" "shutdown_rule" {
  name                = "shutdown-dev-servers"
  schedule_expression = "cron(0 19 * * ? *)" # 7 pm utc
}

resource "aws_cloudwatch_event_target" "shutdown_target" {
  rule      = aws_cloudwatch_event_rule.shutdown_rule.name
  target_id = "stopdevinstances"
  arn       = "arn:aws:lambda:us-east-1:123456789012:function:stop-instances"
}

5. use reserved instances or savings plans for long-term workloads

if you’re running workloads 24/7, on-demand pricing is the most expensive option. reserved instances (ris) or savings plans can save you up to 72% over on-demand rates. here’s how to choose:

reserved instances vs. savings plans

feature	reserved instances (ris)	savings plans
flexibility	tied to specific instance types, regions, and tenancy.	applies across instance families, regions, and even aws accounts.
commitment	1- or 3-year terms.	1- or 3-year terms, with hourly or all-upfront payment options.
best for	predictable, long-term workloads (e.g., production databases).	flexible workloads where you want to mix instance types.

how to purchase savings plans

here’s a step-by-step guide for aws:

1. go to the aws cost explorer and select "savings plans" from the left menu.
2. click "recommendations" to see personalized suggestions based on your usage.
3. choose between compute savings plans (most flexible) or ec2 instance savings plans (higher savings, less flexible).
4. select your term (1 or 3 years) and payment option (all upfront, partial upfront, or no upfront).
5. purchase and watch your savings roll in!

bonus: track and optimize with cost management tools

you can’t optimize what you don’t measure. here are some tools to help you stay on top of your cloud spending:

• aws cost explorer: visualize your spending trends and identify cost drivers.
• google cloud’s cost management: set budgets, alerts, and get recommendations for savings.
• azure cost management + billing: track spending across subscriptions and set up alerts.
• third-party tools: solutions like cloudhealth or kubecost (for kubernetes) provide deeper insights.

final thoughts: small changes, big savings

cloud cost optimization isn’t about cutting corners—it’s about being smart with your resources. by right-sizing, leveraging spot instances, optimizing storage, automating shutdowns, and using reserved capacity, you can slash your cloud bill without sacrificing performance.

start with one or two of these hacks, monitor the impact, and iterate. over time, you’ll develop a cost-conscious mindset that benefits both your projects and your wallet. happy coding—and happy saving!