Optimizing Redshift Reservations

Opportunity Name: Redshift Reservation Purchase Recommendations

AWS Resource Type:

Amazon Redshift


Opportunity Description

This CloudFix Finder identifies cost-saving opportunities by analyzing Redshift usage patterns and recommending optimal reservation purchases. By leveraging the AWS Cost and Usage Report (CUR) Query and AWS Cost Explorer’s Redshift reservation purchase recommendations, CloudFix determines the best reservation strategy based on historical usage trends.

The Finder provides data-driven recommendations based on reservation options but does not apply the fix automatically. Instead, users must manually review and execute the recommended purchases.


Criteria for Identifying the Opportunity

This Finder identifies Redshift reservation opportunities using the following criteria:

  1. CUR Query Analysis

    • Identifies resources by account, region, and node type, which align with the scope of reservation purchases.
    • Ensures recommendations align with AWS Cost Explorer’s reservation purchase suggestions.
  2. Usage-Based Assessment

    • Focuses on Redshift nodes active for at least 7 days (configurable) to ensure stable demand.
    • Excludes resources tagged as "don't fix it" to respect user-defined exclusions.
    • Filters for instances where the annualized public cost is greater than $100, ensuring meaningful savings.
  3. Savings Calculation

    • Extracts the on-demand cost from CUR.
    • Retrieves AWS Cost Explorer’s recommended reservation pricing.
    • Compares on-demand vs. reserved node costs to determine:
      • Annual savings
      • Optimal purchase term (1 year vs. 3 years)
      • Best payment option (No Upfront, Partial Upfront, All Upfront)
  4. Validation Step

    • Uses AWS Cost Explorer to confirm the reservation purchase recommendation exists.
    • Ensures that the identified resources are eligible for reservation purchases.

Potential Savings

By switching from on-demand to reserved instances, CloudFix users can achieve significant cost savings. Savings vary depending on the purchase term and payment method.

A typical savings example:

  • On-Demand Cost: $10,000 per year
  • 1-Year Reserved Instance (No Upfront): $7,000 per year (30% savings)
  • 3-Year Reserved Instance (All Upfront): $3,700 per year (63% savings)

The Finder presents a comparative cost report, showing the projected savings for each option.


What Happens When the Finder Identifies an Opportunity?

  1. A detailed report is generated, displaying:
    • Current on-demand cost
    • Recommended reservation options (1-year, 3-year)
    • Expected savings in dollars and percentages
    • Node type and region for each recommendation

Is There an Automated Fixer for This Opportunity?

No, CloudFix does not automatically purchase reservations.
The Finder only provides recommendations—it does not execute purchases. Users must manually review the suggestions and complete the purchase through the AWS Management Console or API.


Does This Fix Require Downtime?

No downtime is required.
Purchasing a Redshift reservation does not disrupt existing workloads. Reserved pricing applies seamlessly to running clusters.


Next Steps: Acting on the Recommendation

Once the Finder provides reservation recommendations, users should:

  1. Review the report to determine the best purchase strategy.
  2. Log into AWS Cost Explorer and navigate to the Redshift reservation purchase page.
  3. Manually select and confirm the reservation purchase based on the Finder’s recommendations.

Additional Resources


Summary

CloudFix helps users identify the most cost-effective Redshift reservations based on AWS Cost Explorer recommendations and CUR data analysis. While CloudFix does not purchase reservations automatically, it provides clear, actionable insights to help users make informed purchasing decisions.

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