google-cloud-waf-cost-optimization

SKILL.md

Google Cloud Well-Architected Framework skill for the Cost Optimization pillar

Overview

The Cost Optimization pillar of the Google Cloud Well-Architected Framework
provides a structured approach to optimize the costs of your cloud workloads
while maximizing business value. Cloud costs differ significantly from
on-premises capital expenditure (CapEx) models, requiring a shift to operational
expenditure (OpEx) management and a culture of accountability (FinOps).

Core principles

The recommendations in the cost optimization pillar of the Well-Architected
Framework are aligned with the following core principles:

Align cloud spending with business value: Ensure that your cloud
resources deliver measurable business value by aligning IT spending with
business objectives. Prioritize investments that directly contribute to
revenue, customer satisfaction, or operational efficiency. Grounding
document:
https://docs.cloud.google.com/architecture/framework/cost-optimization/align-cloud-spending-business-value.md.txt

Foster a culture of cost awareness: Ensure that people across your
organization consider the cost impact of their decisions and activities.
Provide teams with the visibility and information they need to make informed,
cost-conscious choices. Grounding document:
https://docs.cloud.google.com/architecture/framework/cost-optimization/foster-culture-cost-awareness.md.txt

Optimize resource usage: Provision only the resources that you need and
pay only for what you consume. Select the most cost-effective resource types,
sizes, and locations that meet your technical and business requirements.
Grounding document:
https://docs.cloud.google.com/architecture/framework/cost-optimization/optimize-resource-usage.md.txt

Optimize continuously: Continuously monitor your cloud resource usage and
costs, and proactively make adjustments as needed to optimize your spending.
This iterative approach helps identify and address inefficiencies before they
become significant. Grounding document:
https://docs.cloud.google.com/architecture/framework/cost-optimization/optimize-continuously.md.txt

Relevant Google Cloud products

The following are examples of Google Cloud products and features that are
relevant to cost optimization:

Visibility and monitoring:

Cloud Billing reports: Native dashboards for visualizing spending and
trends.

BigQuery billing export: Enables granular, custom analysis of billing
data using SQL and BI tools.

Looker Studio: Used for creating detailed, shared cost dashboards and
reports.

Billing alerts and budgets: Automated notifications when spending
reaches predefined thresholds.

Automation and optimization tools:

Recommender / Active Assist: Automatically identifies idle resources,
rightsizing opportunities, and unused commitments.

Cloud Hub Optimization: Integrates billing and resource utilization data
to help developers and application owners quickly identify their most
expensive, fluctuating, or underutilized cloud resources.

FinOps hub: Presents active savings and optimization opportunities in
one dashboard.

Billing quotas: Limits on resource consumption to prevent unexpected
cost spikes.

Efficient infrastructure:

Managed services and serverless services: Services like Cloud Run, Cloud
Run functions, and GKE Autopilot reduce operational overhead and pay-per-use
scaling.

Compute Engine: Use of Spot VMs for fault-tolerant workloads and
Committed Use Discounts (CUDs) for stable workloads.

Cloud Storage Lifecycle Policies: Automatically moves data to lower-cost
storage classes (Nearline, Coldline, Archive) based on age or access.

Organization and governance:

Resource Manager: Logical structure (Organizations, Folders, Projects)
for cost attribution.

Labels: Metadata tags for categorizing and filtering costs by
environment, team, or application.

Organization Policy Service: Enforces constraints (e.g., restricted
regions or machine types) to control costs.

Workload assessment questions

Ask appropriate questions to understand the cost-related requirements and
constraints of the workload and the user's organization. Choose questions from
the following list:

How do you incorporate cost considerations into your cloud architecture design
process?

How do you foster a culture of cost awareness among your development teams?

How do you monitor and manage cloud costs across different projects or
departments?

What strategies do you use to optimize the cost of your compute resources?

How do you balance cost optimization with the need for agility and innovation?

How do you ensure that you are not over-provisioning cloud resources?

How do you use data and analytics to drive cost optimization decisions?

How do you optimize costs in different environments (e.g., development,
testing, production)?

How do you ensure that your cost optimization efforts are sustainable and
ongoing?

How do you measure the success of your cloud cost optimization initiatives?

Validation checklist

Use the following checklist to evaluate the architecture's alignment with
cost-optimization recommendations:

Cost Attribution: 100% of resources are labeled with key metadata
(e.g., env, team, app).

Granular Visibility: BigQuery billing export is enabled and used for
regular cost reviews.

Budgets and Alerts: Every project or business unit has defined budgets
and active alerts.

Rightsizing: Resources are regularly adjusted based on rightsizing
suggestions provided by Active Assist Recommender.

Commitment Strategy: Spend is reviewed monthly to optimize Committed
Use Discount coverage.

Idle Resource Management: Unused disks, IP addresses, and idle VMs are
identified and removed monthly.

Managed Services: Serverless options are preferred for new workloads
unless specific technical constraints exist.

Storage Tiers: Lifecycle policies are active for all major storage
buckets to minimize archival costs.