Strategies to save in your cloud

by | May 28, 2024 | FinOps, Migrations

agentic capabilities

Agentic capabilities for FinOps: Optimizing cloud costs with intelligent automation

The shift to cloud-native architectures has transformed how enterprises operate, enabling agility, scalability, and innovation through technologies like containerization and microservices. However, as workloads migrate to public cloud environments, managing costs while maintaining flexibility has become a critical challenge.

FinOps is no longer just about manual monitoring or static budgeting. With the rise of intelligent automation and AIOps (AI-driven operations), enterprises can deploy autonomous agents to continuously analyze cloud consumption, enforce cost-saving measures, and provide actionable recommendations—all in real time.

Why agentic capabilities for FinOps?

Agentic capabilities refer to the ability of AI-driven systems to act independently, make decisions, and execute tasks with minimal human intervention. In the context of FinOps, these capabilities enable organizations to:

Proactively monitor cloud usage patterns and budgets.

Dynamically adjust resources based on real-time needs.

Recommend cost-saving strategies like instance scheduling, shutting down non-production environments, or purchasing compute savings plans and reservations.

By integrating agentic systems into cloud strategies, enterprises can reduce operational overhead by 30 to 50 percent while ensuring cost efficiency without sacrificing performance or security.

Let’s explore how to do it on AWS: Building agents for cloud cost optimization

How to create a system of agents on AWS to monitor cloud consumption and drive FinOps recommendations. These agents will focus on three key areas: instance scheduling, non-production environment management, and savings plan optimization.

Step 1: Define Agent Objectives and Tools

We’ll create three distinct agents, each with a specific FinOps role:

Instance Scheduling Agent: Monitors running EC2 instances and recommends scheduling (start/stop times) based on usage patterns.

Non-Production Environment Agent: Identifies idle non-production environments (e.g., dev/test) and triggers shutdowns during off-hours.

Savings Plan Agent: Analyzes compute usage trends and suggests purchasing AWS Savings Plans or Reserved Instances for cost efficiency.

These agents will leverage AWS services like AWS Lambda (for serverless execution), CloudWatch (for monitoring), AWS Cost Explorer (for cost data), and Amazon SNS (for notifications).

Step 2: Set Up the Infrastructure

Data Collection: Use CloudWatch to gather metrics on EC2 instance usage (e.g., CPU utilization, network activity) and Cost Explorer APIs to pull billing and usage data.

Agent Logic: Write Python-based Lambda functions for each agent, embedding AI/ML logic (e.g., using AWS SageMaker for predictive analytics or simple rule-based heuristics).

Triggers: Schedule Lambda functions to run periodically (e.g., hourly) via CloudWatch Events or trigger them based on specific thresholds (e.g., budget overrun alerts).

Actions: Enable agents to send recommendations via SNS (e.g., emailing the FinOps team) or directly invoke AWS APIs (e.g., to stop an EC2 instance).

Step 3: Implement the Agents

Here’s a high-level breakdown of each agent’s logic:

Instance Scheduling Agent

Input: CloudWatch metrics on EC2 instance activity (e.g., low CPU usage for 4+ hours).

Logic: If an instance is underutilized during predictable windows (e.g., nights/weekends), recommend a start/stop schedule.

Output: Sends a notification like, “Schedule Instance i-12345 to stop at 6 PM and start at 8 AM to save $50/month.”

Non-Production Environment Agent

Input: Tags on EC2 instances (e.g., “Environment=Dev”) and usage data.

Logic: If a non-production instance is idle (e.g., no activity for 2 hours) outside business hours, trigger a shutdown.

Output: Automatically stops the instance and notifies the team: “Dev instance i-67890 stopped at 8 PM, saving $20/day.”

Savings Plan Agent

Input: Historical data from Cost Explorer (e.g., 3 months of EC2 usage).

Logic: Identifies consistent compute workloads and calculates potential savings with Reserved Instances or Savings Plans.

Output: Recommends, “Purchase a 1-year Savings Plan for t3.medium instances to save 35% ($300/year).”

Step 4: Deploy and Iterate

Deploy the Lambda functions and test them in a sandbox environment.

Use CloudWatch Logs to monitor agent performance and refine their logic (e.g., tweak thresholds or integrate ML models for better predictions).

Scale the system by adding more agents (e.g., for S3 storage optimization or container cost management).

By deploying these agents, enterprises can:

Reduce Waste: Automatically turn off unused resources, cutting costs by up to 20-30%.

Optimize Investments: Make data-driven decisions on reservations, potentially saving 35-50% on compute costs.

Improve Agility: Free up FinOps teams from manual analysis, allowing focus on strategic priorities.

The Bigger Picture

This example is just the beginning. Agentic capabilities can extend beyond AWS to multi-cloud environments, integrating with tools like Kubernetes for container cost management or third-party FinOps platforms. As AIOps solutions evolve, these agents could leverage advanced ML models to predict usage spikes, negotiate spot instance pricing, or even optimize encrypted communication costs—all while maintaining the security and compliance demanded by modern enterprises.

Conclusion

FinOps, powered by agentic capabilities, is transforming how organizations manage cloud economics. By deploying intelligent agents on AWS, companies can monitor consumption patterns, enforce cost-saving policies, and make proactive recommendations—all in real time. The result? A cloud strategy that balances cost, flexibility, and scalability, delivering maximum value in a cloud-native world.

Ready to take control of your cloud costs? Start small with a single agent, and watch the savings stack up. Reach out to us for detailed support !!

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