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Cost Optimization

Deductive AI helps you discover cost savings and performance improvements across your infrastructure and services, surfacing opportunities that would otherwise require dedicated engineering time to find.

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The Challenge

Identifying cost optimization opportunities is difficult:

• Data Silos - Cost data spread across multiple systems
• Complex Relationships - Hard to correlate costs with usage patterns
• Time Constraints - Requires deep analysis that teams don’t have time for
• Hidden Inefficiencies - Problems only visible when correlating multiple data sources

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How Deductive Helps

Deductive AI continuously analyzes your infrastructure to identify:

1. Underutilized Resources - Services running but not actively used
2. Oversized Instances - Resources provisioned beyond actual needs
3. Inefficient Patterns - Code or infrastructure patterns causing waste
4. Optimization Opportunities - Specific actions to reduce costs

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Example: Infrastructure Optimization

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The Discovery

Deductive analyzes your AWS infrastructure and identifies:

Cost Optimization Opportunity: The analytics-service is running 10 instances 24/7, but metrics show it only needs 3 instances during peak hours and 1 instance during off-peak. Current Cost: $2,400/month (10 instances × $240/month) Optimized Cost: $720/month (3 peak + 1 off-peak with auto-scaling) Potential Savings: $1,680/month (70% reduction) Evidence:

• CPU utilization averages 15% across all instances
• Traffic patterns show clear peak/off-peak cycles
• Auto-scaling is configured but not enabled
• Similar services successfully use auto-scaling

Recommended Action: Enable auto-scaling with min=1, max=5 instances based on CPU utilization.

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The Implementation

Deductive can help you implement the optimization:

1. Review Current Configuration - Shows current instance setup
2. Generate Auto-Scaling Config - Creates CloudFormation/Terraform changes
3. Test in Staging - Validates the configuration
4. Monitor Impact - Tracks cost reduction and performance

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Key Capabilities

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Multi-Cloud Analysis

Deductive analyzes costs across:

• AWS - EC2, RDS, S3, Lambda, and more
• GCP - Compute Engine, Cloud SQL, Storage
• Azure - Virtual Machines, SQL Database, Blob Storage
• Kubernetes - Cluster resource usage and pod efficiency

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Pattern Recognition

Deductive identifies common inefficiencies:

• Zombie Resources - Instances running but unused
• Over-Provisioning - Resources sized for peak but rarely used
• Inefficient Queries - Database queries causing high costs
• Redundant Services - Multiple services doing the same thing

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Cost Attribution

Deductive helps you understand:

• Service-Level Costs - What each service actually costs
• Cost Drivers - What’s driving your cloud spend
• Trend Analysis - How costs are changing over time
• Anomaly Detection - Unexpected cost spikes

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Example Scenarios

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Database Optimization

Problem: High RDS costs from inefficient queries Deductive Analysis:

• Identifies slow queries causing high CPU usage
• Correlates query patterns with code changes
• Finds N+1 query problems in recent PRs
• Recommends query optimization or caching

Result: 40% reduction in database costs

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Storage Optimization

Problem: S3 costs growing unexpectedly Deductive Analysis:

• Identifies old log files not being cleaned up
• Finds duplicate data across buckets
• Discovers inefficient data formats
• Recommends lifecycle policies

Result: 60% reduction in storage costs

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Compute Optimization

Problem: High EC2 costs from over-provisioning Deductive Analysis:

• Analyzes actual CPU/memory usage vs. provisioned
• Identifies services that can use smaller instance types
• Finds opportunities for spot instances
• Recommends right-sizing strategy

Result: 50% reduction in compute costs

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Best Practices

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Connect Cost Data Sources

Enable comprehensive cost analysis:

• Cloud Provider APIs - AWS Cost Explorer, GCP Billing, Azure Cost Management
• Infrastructure Monitoring - Prometheus, Datadog for resource usage
• Application Metrics - Custom metrics for business logic costs
• Code Repositories - Track changes that affect costs

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Regular Reviews

Set up periodic cost analysis:

• Weekly Reviews - Quick checks for obvious issues
• Monthly Deep Dives - Comprehensive analysis
• Quarterly Planning - Strategic cost optimization

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Actionable Recommendations

Deductive provides specific, actionable recommendations:

• Exact Changes - Specific configuration changes needed
• Impact Estimates - Expected cost savings
• Risk Assessment - Potential impact on performance
• Implementation Steps - Step-by-step guide to implement

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Results

Teams using Deductive AI for cost optimization report:

• 20-40% Cost Reduction - Average savings across infrastructure
• Faster Discovery - Find opportunities in minutes vs. weeks
• Better Visibility - Understand what’s driving costs
• Proactive Management - Catch cost issues before they grow

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Next Steps

• Connect AWS Integration - Enable cost analysis
• Connect Prometheus - Track resource usage
• Get Started - Start optimizing costs today