Cloud Resource Utilization Forecasting for Cost Right-Sizing
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Solution Overview
Problem
Existing cloud cost optimization tools fail to analyze resource utilization systematically, leading to inaccurate anomaly detection, lack of actionable recommendations, and inefficient budget planning due to under-utilized resources.
Innovation Solution
A method and system that identify under-utilized resources by analyzing their steady state, temporal patterns, and forecasting future behavior, providing recommendations for auto-shutdown, scaling, or consolidation using ensemble algorithms and a greedy approach to optimize resource utilization.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If existing cloud cost optimization tools analyze resources in isolation, then they can detect spend leakages, but they fail to capture systemic impact and generate too many or too few anomalies
Solution Approach 1:
The system segments cloud resources into resource groups and analyzes them individually while maintaining awareness of their relationships. Each resource is analyzed in isolation for cost optimization, but the results are aggregated to capture systemic impacts, resolving the contradiction between detailed analysis and holistic view.
Solution Approach 2:
The system merges individual resource analysis with group-level context by combining utilization metrics from multiple resources. This allows the system to detect anomalies at both individual and systemic levels, capturing both spend leakages and their broader impacts without overwhelming complexity.
2Loss of information
If existing tools stop at detecting spend leakages, then they identify problems, but they fail to offer actionable recommendations
Solution Approach 1:
The system performs preliminary analysis of resource utilization patterns and forecasts future behavior before generating recommendations. By analyzing temporal patterns and predicting future states, the system can proactively suggest optimizations rather than merely reacting to detected leakages, adding actionable insights without excessive complexity.
Solution Approach 2:
The system implements feedback loops that continuously monitor resource utilization, compare actual performance against forecasts and thresholds, and adjust recommendations accordingly. This feedback mechanism ensures recommendations remain actionable and relevant, adapting to changing conditions while maintaining information completeness.
3Reliability
If resources are over-provisioned to ensure availability, then service reliability is improved, but cloud cost increases due to under-utilization
Solution Approach 1:
The system dynamically adjusts resource allocation based on actual utilization patterns and forecasts. Rather than static over-provisioning, the system continuously optimizes resource sizes and configurations to match demand, maintaining service reliability while minimizing waste through data-driven decisions about when and how much capacity to provision.
Data Source
AI summary
The under-utilized resources are attributed to various reasons such as over-provisioning of resources, diminishing use of resource, application upgrades. The present disclosure identifies one or more under-utilized resources from a set of resources by (i) deriving most recent steady state in utilization of metrics specific to set of resources, (ii) deriving one or more temporal patterns by analyzing derived most recent steady state in utilization of metrics specific to set of resources, (iii) computing a representative maximum utilization of metrics specific to set of resources for each of derived one or more temporal patterns, (iv) deriving headroom based on computed representative maximum utilization, (v) forecasting future behavior of utilization, (vi) deriving time to saturation for metrics specific to set of resources, and (vii) identifying one or more under-utilized resources based on derived time to saturation. One or more recommendations for optimizing identified one or more under-utilized resources are generated.


