Provide Actual Cost Savings for Rightsizing Recommendations in FinOps Hub #1435
Description
📝 Scenario
Currently, Azure Advisor displays cost savings for rightsizing recommendations based on Azure retail prices. While this gives a general indication of potential savings, it does not reflect the actual financial impact in environments with Reserved Instances (RIs), Savings Plans, or custom-negotiated pricing. This limits the accuracy and effectiveness of cost optimization efforts, as stakeholders are unable to prioritize rightsizing actions based on real monetary benefit.
For example, a recommendation to downsize a VM might show $100/month in savings based on retail pricing, but in reality, due to RIs or EA discounts, the actual savings might be significantly lower—or even negligible—making the recommendation misleading or inactionable.
💎 Solution
Introduce reporting enhancements in FinOPs Hub optimization engine reports that overlay actual effective cost data onto rightsizing recommendations. This would enable FinOps teams to assess the true cost impact of rightsizing actions by comparing the effective cost of the current SKU with that of the recommended SKU, side by side with the retail-based estimate.
📋 Tasks
### Required tasks
- [ ] TODO: Add tasks
### Stretch goals
ℹ️ Additional context
Reporting Layer Enhancement
Introduce a new column in rightsizing recommendation reports showing "Estimated Actual Savings":
Effective Cost (Current SKU) - Effective Cost (Recommended SKU)
Maintain the existing "Retail Savings" column for comparison and transparency.
Visual Indicators
Use color-coding or icons to highlight recommendations where actual savings differ significantly (e.g., more than 20%) from retail savings.
Filters and Prioritization
Add filtering and sorting capabilities based on actual savings impact, allowing users to focus on the most meaningful optimizations.
🙋♀️ Ask for the community
We could use your help:
- Please vote this issue up (👍) to prioritize it.
- Leave comments to help us solidify the vision.