20 — Scale & Optimize

Cost Governance#

FinOpsPractice 1 min read
◆ The PatternTracking cost per prediction and eliminating ML waste

ML workloads are expensive — GPUs, storage, compute for training and serving. Cost governance tracks cost per prediction, GPU utilisation, idle resources, and spot vs reserved savings. The goal: same model quality at lower cost, or better models at the same cost.

// Interactive — cost breakdown by category
StrategySavings (vendor and practitioner ranges; varies widely)Risk
Spot/preemptible instances60–90%Interruption risk
Right-sizing instances20–50%Under-provisioning
Model compression40–75%Accuracy loss
Prediction caching50–80%Stale results
Pattern bridge: Cost governance applies the same risk-adjusted return thinking to infrastructure — maximise model value per dollar spent, just as transaction cost analysis measures trading efficiency.
Worked example

A 2.50-dollar-an-hour GPU that can serve 400 predictions a second. At 30% utilisation each 1,000 predictions cost $0.0058; at 80%, $0.0022 — 2.7× cheaper on the same hardware. Utilisation is usually the biggest lever, before any model change.

Where it misleads
  • Cost per prediction ignores what a prediction is worth; the cheapest model is not the best value.
  • Pushing utilisation to the limit raises latency sharply (see Latency & Throughput).
  • Training, data and engineering time are often larger costs than serving.
In code
gpu_per_hour = 2.50                        # dollars, on demand
capacity = 400                             # predictions per second at full use

def cost_per_1k(utilisation):
    return gpu_per_hour / (capacity * utilisation * 3600) * 1000

low, high = cost_per_1k(0.30), cost_per_1k(0.80)
Python, in your browser — edit the code and run it again

Assumes import numpy as np and import pandas as pd. Each snippet carries its own example numbers; the comments say which are made up or simulated.

Sources
  • FinOps Foundation, FinOps Framework, finops.org
  • E. Strubell, A. Ganesh & A. McCallum, “Energy and Policy Considerations for Deep Learning in NLP”, ACL, 2019
  • Designing Machine Learning Systems, C. Huyen, O’Reilly, 2022

Last reviewed October 2026 · How this site checks its content · Report a mistake

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