{"id":17507,"date":"2026-04-01T16:14:04","date_gmt":"2026-04-01T10:44:04","guid":{"rendered":"https:\/\/www.skynats.com\/blog\/?p=17507"},"modified":"2026-04-01T16:14:06","modified_gmt":"2026-04-01T10:44:06","slug":"how-we-reduced-a-clients-cloud-bill-by-40-on-aws","status":"publish","type":"post","link":"https:\/\/www.skynats.com\/blog\/how-we-reduced-a-clients-cloud-bill-by-40-on-aws\/","title":{"rendered":"How We Reduced a Client&#8217;s Cloud Bill by 40% on AWS"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"17507\" class=\"elementor elementor-17507\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"has_eae_slider elementor-element elementor-element-92a8381 e-flex e-con-boxed e-con e-parent\" data-eae-slider=\"22798\" data-id=\"92a8381\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-89098de elementor-widget elementor-widget-html\" data-id=\"89098de\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\n\n<!-- \u2550\u2550\u2550 RESULTS SNAPSHOT \u2550\u2550\u2550 -->\n<div style=\"background:#f8fafc;border:1px solid #e2e8f0;border-radius:10px;padding:24px;margin-bottom:32px\">\n  <h2 style=\"font-size:16px;color:#0b1e3d;margin-bottom:18px;font-weight:700\">Results at a Glance<\/h2>\n  <div style=\"display:grid;grid-template-columns:repeat(3,1fr);gap:16px;text-align:center\">\n    <div style=\"background:#fff;border:1px solid #bbf7d0;border-radius:8px;padding:20px 12px\">\n      <div style=\"font-size:42px;font-weight:800;color:#15803d;line-height:1\">40%<\/div>\n      <div style=\"font-weight:700;color:#1e293b;margin:6px 0 4px;font-size:14px\">Cost Reduction<\/div>\n      <div style=\"font-size:12px;color:#64748b\">AWS bill cut in 14 days<\/div>\n    <\/div>\n    <div style=\"background:#fff;border:1px solid #bfdbfe;border-radius:8px;padding:20px 12px\">\n      <div style=\"font-size:42px;font-weight:800;color:#1d4ed8;line-height:1\">$3,800<\/div>\n      <div style=\"font-weight:700;color:#1e293b;margin:6px 0 4px;font-size:14px\">Monthly Savings<\/div>\n      <div style=\"font-size:12px;color:#64748b\">From $9,400 to $5,600\/mo<\/div>\n    <\/div>\n    <div style=\"background:#fff;border:1px solid #99f6e4;border-radius:8px;padding:20px 12px\">\n      <div style=\"font-size:42px;font-weight:800;color:#0d9488;line-height:1\">$45,600<\/div>\n      <div style=\"font-weight:700;color:#1e293b;margin:6px 0 4px;font-size:14px\">Annual Savings<\/div>\n      <div style=\"font-size:12px;color:#64748b\">Recurring year-over-year<\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n<!-- \u2550\u2550\u2550 SECTION 1: CLIENT OVERVIEW \u2550\u2550\u2550 -->\n<h4>1. Client Overview<\/h4>\n\n<p>Our client is a <strong>US-based healthcare technology company<\/strong> operating a patient data management platform serving hospitals and outpatient clinics across three states. Their platform handles protected health information (PHI), appointment scheduling, clinical note storage, and real-time provider communications \u2014 all under strict <strong>HIPAA regulatory requirements<\/strong>.<\/p>\n\n<p>With a growing user base and an engineering team fully committed to product development, infrastructure management had taken a back seat. The result: an AWS bill that had quietly ballooned to <strong style=\"color:#c2410c\">over $9,400 per month<\/strong> \u2014 and nobody on the team could explain exactly why.<\/p>\n\n<!-- \u2550\u2550\u2550 SECTION 2: THE PROBLEM \u2550\u2550\u2550 -->\n<h4>2. The Problem: $9,400\/Month and No Idea Why<\/h4>\n\n<p>When the client's CTO first contacted Skynats, the conversation started with a telling admission: <em>\"We know we're overpaying. We just don't know where.\"<\/em><\/p>\n\n<p>This is one of the most common situations we encounter. Fast-growing teams provision infrastructure to meet immediate needs and move on. Reserved Instances expire. Test environments stay running. Databases keep their original spec even after traffic patterns shift. Over time, the bill grows \u2014 not from bad decisions, but from decisions that were never revisited.<\/p>\n\n<p>The compounding factor for this client was compliance. Any infrastructure change had to preserve full HIPAA compliance \u2014 encryption at rest and in transit, access controls, audit logging, and data isolation. This meant a standard cost optimisation playbook couldn't simply be applied \u2014 every change required validation against the compliance framework first.<\/p>\n\n<div style=\"background:#eff6ff;border-left:4px solid #1d4ed8;padding:16px 20px;border-radius:0 8px 8px 0;margin:24px 0\">\n  <strong style=\"color:#1d4ed8;display:block;margin-bottom:6px\">\ud83c\udfaf The Core Challenge<\/strong>\n  <p style=\"margin:0;color:#1e3a8a;font-size:14px\">Reduce a $9,400\/month AWS bill by a meaningful percentage \u2014 with full HIPAA compliance maintained at every step, zero downtime, and no changes to application code.<\/p>\n<\/div>\n\n<!-- \u2550\u2550\u2550 SECTION 3: THE AUDIT \u2550\u2550\u2550 -->\n<h4>3. The Skynats AWS Infrastructure Audit<\/h4>\n\n<p>Before touching anything, our engineers spent the first three days conducting a full read-only infrastructure audit. This is a non-negotiable step \u2014 acting without a complete picture is how optimisation projects cause outages.<\/p>\n\n<p>Our audit covered:<\/p>\n\n<ul>\n  <li><strong>EC2 fleet analysis:<\/strong> Instance types, utilisation metrics from CloudWatch, rightsizing opportunities, Reserved Instance coverage, and Spot Instance suitability per workload.<\/li>\n  <li><strong>RDS database review:<\/strong> Instance classes, storage provisioning, Multi-AZ configuration, backup retention, and read replica deployment.<\/li>\n  <li><strong>Data transfer mapping:<\/strong> Cross-AZ traffic, NAT Gateway usage, CloudFront coverage, and inter-region transfer costs.<\/li>\n  <li><strong>Zombie resource sweep:<\/strong> Unattached EBS volumes, idle Elastic IPs, unused load balancers, and forgotten snapshots.<\/li>\n  <li><strong>Auto-scaling review:<\/strong> Scaling policies, minimum\/maximum thresholds, and schedule-based scaling opportunities.<\/li>\n  <li><strong>HIPAA compliance layer:<\/strong> Encryption status of all data stores, CloudTrail audit log coverage, VPC flow logs, IAM permission scope, and security group configurations.<\/li>\n<\/ul>\n\n<!-- \u2550\u2550\u2550 SECTION 4: FINDINGS \u2550\u2550\u2550 -->\n<h4>4. Key Findings<\/h4>\n\n<table style=\"width:100%;border-collapse:collapse;font-size:14px;margin:16px 0\">\n  <thead>\n    <tr>\n      <th style=\"background:#0b1e3d;color:#fff;padding:12px 16px;text-align:left;width:28%\">Finding<\/th>\n      <th style=\"background:#0b1e3d;color:#fff;padding:12px 16px;text-align:left\">Detail<\/th>\n    <\/tr>\n  <\/thead>\n  <tbody>\n    <tr style=\"background:#fff\">\n      <td style=\"padding:12px 16px;border-bottom:1px solid #e2e8f0;font-weight:600;color:#1e293b\">EC2 Over-provisioning<\/td>\n      <td style=\"padding:12px 16px;border-bottom:1px solid #e2e8f0;color:#475569\">14 of 22 EC2 instances running at under 12% average CPU utilisation. Six production instances sized 2\u20133 tiers larger than required. Legacy m4\/c4 families carrying a 25\u201335% price premium over current-generation equivalents.<\/td>\n    <\/tr>\n    <tr style=\"background:#f8fafc\">\n      <td style=\"padding:12px 16px;border-bottom:1px solid #e2e8f0;font-weight:600;color:#1e293b\">No Reserved Instance Coverage<\/td>\n      <td style=\"padding:12px 16px;border-bottom:1px solid #e2e8f0;color:#475569\">100% of compute running On-Demand \u2014 the most expensive configuration available on AWS for a production workload with predictable base load.<\/td>\n    <\/tr>\n    <tr style=\"background:#fff\">\n      <td style=\"padding:12px 16px;border-bottom:1px solid #e2e8f0;font-weight:600;color:#1e293b\">RDS Sizing Mismatch<\/td>\n      <td style=\"padding:12px 16px;border-bottom:1px solid #e2e8f0;color:#475569\">Primary RDS instance (db.r5.2xlarge) sized for peak load projections from 18 months prior. Actual database CPU rarely exceeded 22%. An unused read replica was still running and being billed.<\/td>\n    <\/tr>\n    <tr style=\"background:#f8fafc\">\n      <td style=\"padding:12px 16px;border-bottom:1px solid #e2e8f0;font-weight:600;color:#1e293b\">Uncontrolled Data Transfer<\/td>\n      <td style=\"padding:12px 16px;border-bottom:1px solid #e2e8f0;color:#475569\">EC2 instances communicating across AZ boundaries for non-critical tasks. Misconfigured S3 endpoint routing through the public internet instead of VPC endpoint \u2014 generating unnecessary NAT Gateway charges.<\/td>\n    <\/tr>\n    <tr style=\"background:#fff\">\n      <td style=\"padding:12px 16px;border-bottom:1px solid #e2e8f0;font-weight:600;color:#1e293b\">Zombie Resources<\/td>\n      <td style=\"padding:12px 16px;border-bottom:1px solid #e2e8f0;color:#475569\">11 unattached EBS volumes (2.4TB), 4 idle Elastic IPs, 2 load balancers with no registered targets, 847GB of unmanaged EBS snapshots \u2014 all generating ongoing charges.<\/td>\n    <\/tr>\n    <tr style=\"background:#f8fafc\">\n      <td style=\"padding:12px 16px;font-weight:600;color:#1e293b\">No Auto-Scaling<\/td>\n      <td style=\"padding:12px 16px;color:#475569\">Application layer had no auto-scaling groups. Fixed capacity running 24\/7 at peak provisioning \u2014 even during overnight hours when traffic dropped to under 8% of peak.<\/td>\n    <\/tr>\n  <\/tbody>\n<\/table>\n\n<!-- \u2550\u2550\u2550 SECTION 5: OPTIMISATION \u2550\u2550\u2550 -->\n<h4>5. The Optimisation \u2014 What We Did<\/h4>\n\n<p>With the audit complete and every proposed change reviewed against HIPAA requirements, we executed the optimisation in a sequenced, low-risk order. Changes that could cause service disruption were scheduled during off-peak hours with the client's engineering team on standby.<\/p>\n\n<h6>5.1 EC2 Right-Sizing and Instance Modernisation<\/h6>\n<p>We right-sized 14 EC2 instances, moving each to the appropriate instance size with 30% headroom for traffic spikes, and migrated all instances from legacy m4\/c4 families to current-generation m6i\/c6i equivalents. Every instance change was preceded by a <strong>72-hour CloudWatch monitoring window<\/strong> and followed by a <strong>48-hour post-change validation period<\/strong> to confirm performance and HIPAA logging continuity.<\/p>\n\n<h6>5.2 Reserved Instances and Savings Plans<\/h6>\n<p>We analysed 12 months of usage data to identify the stable base load suitable for Reserved Instance pricing, and configured Compute Savings Plans for variable workloads.<\/p>\n\n<div style=\"background:#f0fdf4;border-left:4px solid #15803d;padding:16px 20px;border-radius:0 8px 8px 0;margin:20px 0\">\n  <strong style=\"color:#15803d;display:block;margin-bottom:8px\">\ud83d\udcb0 Savings Breakdown: Compute Commitments<\/strong>\n  <ul style=\"color:#166534;font-size:14px;margin:0;padding-left:20px\">\n    <li>1-year Reserved Instances on 8 stable production instances: <strong>42% discount vs On-Demand<\/strong><\/li>\n    <li>Compute Savings Plans on the remaining flexible workload: <strong>20\u201328% discount<\/strong><\/li>\n    <li>No upfront payment required \u2014 all structured as monthly billing<\/li>\n  <\/ul>\n<\/div>\n\n<h6>5.3 RDS Optimisation<\/h6>\n<p>We downsized the primary RDS instance from db.r5.2xlarge to db.r6g.large \u2014 a two-tier size reduction that still provided 40% headroom above observed peak utilisation. The move to the r6g (Graviton2) family delivered an additional 10\u201315% cost reduction. The unused read replica was decommissioned after confirming no application queries were targeting its endpoint.<\/p>\n\n<p>All changes maintained HIPAA compliance: <strong>encryption at rest using AWS KMS<\/strong> was preserved and validated post-migration, <strong>automated backups retained for 35 days<\/strong>, and <strong>CloudTrail logging confirmed active<\/strong> throughout.<\/p>\n\n<h6>5.4 Data Transfer Routing Fix<\/h6>\n<p>We corrected the S3 VPC endpoint misconfiguration, routing all S3 traffic through the private VPC endpoint and eliminating NAT Gateway charges on every S3 operation. <strong>This single fix reduced the monthly NAT Gateway line item by 68%.<\/strong><\/p>\n\n<h6>5.5 Zombie Resource Cleanup<\/h6>\n<p>After client sign-off, we removed 11 unattached EBS volumes (2.4TB), 4 idle Elastic IPs, 2 load balancers with zero registered targets, and 847GB of EBS snapshots outside the client's own retention policy.<\/p>\n\n<h6>5.6 Auto-Scaling Configuration<\/h6>\n<p>We implemented Auto Scaling Groups for the application tier with target tracking (scale out at 65% CPU, scale in at 35%) and scheduled scaling that reduced minimum instance count during confirmed low-traffic windows (02:00\u201306:00 UTC). Overnight instance count reduced by up to 60%, with full automatic scale-out ahead of morning traffic ramp.<\/p>\n\n<!-- \u2550\u2550\u2550 SECTION 6: RESULTS \u2550\u2550\u2550 -->\n<h4>6. Results<\/h4>\n\n<table style=\"width:100%;border-collapse:collapse;font-size:14px;margin:16px 0\">\n  <thead>\n    <tr>\n      <th style=\"background:#0b1e3d;color:#fff;padding:12px 16px;text-align:left\">AWS Service<\/th>\n      <th style=\"background:#7f1d1d;color:#fff;padding:12px 16px;text-align:center\">Before<\/th>\n      <th style=\"background:#14532d;color:#fff;padding:12px 16px;text-align:center\">After<\/th>\n    <\/tr>\n  <\/thead>\n  <tbody>\n    <tr style=\"background:#fff\"><td style=\"padding:11px 16px;border-bottom:1px solid #e2e8f0;font-weight:600\">EC2 Compute<\/td><td style=\"padding:11px 16px;border-bottom:1px solid #e2e8f0;text-align:center;color:#c2410c\">$4,820\/mo<\/td><td style=\"padding:11px 16px;border-bottom:1px solid #e2e8f0;text-align:center;color:#15803d;font-weight:700\">$2,340\/mo<\/td><\/tr>\n    <tr style=\"background:#f8fafc\"><td style=\"padding:11px 16px;border-bottom:1px solid #e2e8f0;font-weight:600\">RDS Database<\/td><td style=\"padding:11px 16px;border-bottom:1px solid #e2e8f0;text-align:center;color:#c2410c\">$1,940\/mo<\/td><td style=\"padding:11px 16px;border-bottom:1px solid #e2e8f0;text-align:center;color:#15803d;font-weight:700\">$810\/mo<\/td><\/tr>\n    <tr style=\"background:#fff\"><td style=\"padding:11px 16px;border-bottom:1px solid #e2e8f0;font-weight:600\">Data Transfer<\/td><td style=\"padding:11px 16px;border-bottom:1px solid #e2e8f0;text-align:center;color:#c2410c\">$1,280\/mo<\/td><td style=\"padding:11px 16px;border-bottom:1px solid #e2e8f0;text-align:center;color:#15803d;font-weight:700\">$410\/mo<\/td><\/tr>\n    <tr style=\"background:#f8fafc\"><td style=\"padding:11px 16px;border-bottom:1px solid #e2e8f0;font-weight:600\">EBS Storage<\/td><td style=\"padding:11px 16px;border-bottom:1px solid #e2e8f0;text-align:center;color:#c2410c\">$760\/mo<\/td><td style=\"padding:11px 16px;border-bottom:1px solid #e2e8f0;text-align:center;color:#15803d;font-weight:700\">$320\/mo<\/td><\/tr>\n    <tr style=\"background:#fff\"><td style=\"padding:11px 16px;border-bottom:1px solid #e2e8f0;font-weight:600\">Idle \/ Zombie Resources<\/td><td style=\"padding:11px 16px;border-bottom:1px solid #e2e8f0;text-align:center;color:#c2410c\">$600\/mo<\/td><td style=\"padding:11px 16px;border-bottom:1px solid #e2e8f0;text-align:center;color:#15803d;font-weight:700\">$0\/mo<\/td><\/tr>\n    <tr style=\"background:#f0fdf4\"><td style=\"padding:12px 16px;font-weight:800;color:#0b1e3d\">TOTAL<\/td><td style=\"padding:12px 16px;text-align:center;font-weight:800;color:#c2410c\">$9,400\/mo<\/td><td style=\"padding:12px 16px;text-align:center;font-weight:800;color:#15803d\">$5,600\/mo \u2713<\/td><\/tr>\n  <\/tbody>\n<\/table>\n\n<div style=\"background:#f0fdf4;border-left:4px solid #0d9488;padding:16px 20px;border-radius:0 8px 8px 0;margin:24px 0\">\n  <strong style=\"color:#0d9488;display:block;margin-bottom:8px\">\u2705 Final Result<\/strong>\n  <ul style=\"color:#134e4a;font-size:14px;margin:0;padding-left:20px\">\n    <li>Monthly saving: <strong>$3,800 (40.4% reduction)<\/strong><\/li>\n    <li>Annualised saving: <strong>$45,600<\/strong><\/li>\n    <li>HIPAA compliance: <strong>Fully maintained<\/strong> \u2014 confirmed by post-optimisation compliance review<\/li>\n    <li>Application performance: <strong>Unchanged<\/strong> \u2014 zero degradation in response times or error rates<\/li>\n    <li>Downtime: <strong>Zero<\/strong><\/li>\n  <\/ul>\n<\/div>\n\n<!-- \u2550\u2550\u2550 SECTION 7: HIPAA \u2550\u2550\u2550 -->\n<h4>7. HIPAA Compliance \u2014 Maintained Throughout<\/h4>\n<p>Every infrastructure change was assessed against the HIPAA Security Rule before execution. Post-optimisation compliance verification confirmed:<\/p>\n<ul>\n  <li><strong>Encryption:<\/strong> All EBS volumes, RDS instances, and S3 buckets confirmed encrypted at rest (AES-256 \/ AWS KMS). All data in transit encrypted via TLS 1.2+.<\/li>\n  <li><strong>Access controls:<\/strong> IAM roles reviewed and scoped to least-privilege. No new permissions introduced during optimisation.<\/li>\n  <li><strong>Audit logging:<\/strong> CloudTrail, CloudWatch Logs, and VPC Flow Logs confirmed active and uninterrupted throughout all changes.<\/li>\n  <li><strong>Backup integrity:<\/strong> RDS automated backups and EBS snapshot policies confirmed operational post-resize. 35-day retention maintained.<\/li>\n<\/ul>\n<p>The zombie resource cleanup also <strong>improved the compliance posture<\/strong> \u2014 removing idle resources reduced the attack surface, and the corrected S3 routing eliminated a potential data exfiltration vector.<\/p>\n\n<!-- \u2550\u2550\u2550 SECTION 8: LESSONS \u2550\u2550\u2550 -->\n<h4>8. Lessons for Healthcare and Fintech Teams<\/h4>\n<p>Four patterns appear repeatedly in regulated-industry AWS environments:<\/p>\n<ol>\n  <li><strong>Reserved Instance gaps are the single largest cost lever.<\/strong> A 1-year, no-upfront Reserved Instance pays for itself in month five.<\/li>\n  <li><strong>Data transfer costs are invisible until they're not.<\/strong> The S3 VPC endpoint fix took 20 minutes and saved over $600\/month.<\/li>\n  <li><strong>Auto-scaling is not optional at scale.<\/strong> Fixed-capacity fleets leave 30\u201360% of compute spend on the table every night.<\/li>\n  <li><strong>Compliance and cost optimisation are not in conflict.<\/strong> In this engagement, the optimisation improved the compliance posture.<\/li>\n<\/ol>\n\n<!-- \u2550\u2550\u2550 CTA \u2550\u2550\u2550 -->\n<div style=\"background:#eff6ff;border:1px solid #bfdbfe;border-radius:10px;padding:28px;margin:36px 0;text-align:center\">\n  <h2 style=\"color:#0b1e3d;margin-bottom:12px;font-size:22px\">Is Your AWS Bill Telling You the Same Story?<\/h2>\n  <p style=\"color:#475569;max-width:560px;margin:0 auto 20px;font-size:15px\">If your cloud bill is growing faster than your user base \u2014 or you simply can't explain what each line item is paying for \u2014 it's fixable, and faster than you expect.<\/p>\n  <div style=\"background:#fff;border-left:4px solid #1d4ed8;padding:16px 20px;border-radius:0 8px 8px 0;text-align:left;margin-bottom:24px;max-width:560px;margin-left:auto;margin-right:auto\">\n    <strong style=\"color:#1d4ed8;display:block;margin-bottom:8px\">\ud83d\udd0d Your free Skynats AWS audit includes:<\/strong>\n    <ul style=\"color:#1e3a8a;font-size:14px;margin:0;padding-left:20px\">\n      <li>Full breakdown of current AWS spend by service and resource<\/li>\n      <li>Top 5 cost reduction opportunities, prioritised by impact<\/li>\n      <li>Compliance risk assessment (HIPAA, PCI-DSS, ISO 27001)<\/li>\n      <li>Implementation timeline and expected savings estimate<\/li>\n      <li>No obligation. No access to billing or application code required.<\/li>\n    <\/ul>\n  <\/div>\n  <a href=\"https:\/\/calendly.com\/skynats-info\/technical-meeting\" style=\"display:inline-block;background:#1d4ed8;color:#fff;padding:14px 32px;border-radius:8px;font-weight:700;font-size:15px;text-decoration:none\">Book Your Free AWS Audit \u2192<\/a>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Results at a Glance 40% Cost Reduction AWS bill cut in 14 days $3,800 Monthly Savings From $9,400 to $5,600\/mo $45,600 Annual Savings Recurring year-over-year 1. Client Overview Our client is a US-based healthcare technology company operating a patient data management platform serving hospitals and outpatient clinics across three states. Their platform handles protected health [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[722,1272,1006,1269,1271],"class_list":["post-17507","post","type-post","status-publish","format-standard","hentry","category-blog","tag-aws","tag-aws-cost-optimization","tag-aws-management-services","tag-cloud-bill","tag-cloud-cost-optimization"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.9 (Yoast SEO v27.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>AWS Cost Optimization: Cut Cloud Bills by 40%<\/title>\n<meta name=\"description\" content=\"Discover AWS cost optimization that cut a client\u2019s bill by 40%. 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