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Regression-driven FinOps module for ShieldCraft AI. Predicts future compute spend with RMSE monitoring (≤4.7% target) and automates budget enforcement using Step Functions to optimize infrastructure cost reduction.

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ShieldCraft-AI/resource-forecaster

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Resource Forecaster - FinOps & Capacity Planning

🎯 Mission: 40% Cost Reduction Through Predictive Analytics

The Resource Forecaster is an enterprise-grade MLOps platform that predicts future compute utilization and associated costs using advanced time-series regression models. This system enables proactive capacity planning, automated resource rightsizing, and cost optimization strategies that deliver measurable FinOps value.

🏗️ Architecture Overview

┌─────────────────┐    ┌─────────────────┐    ┌─────────────────┐
│   Historical    │────│  Time-Series    │────│   Predictive    │
│   Cost Data     │    │  Regression     │    │   Forecasts     │
│   (CUR/CW)      │    │    Model        │    │                 │
└─────────────────┘    └─────────────────┘    └─────────────────┘
        │                       │                       │
        ▼                       ▼                       ▼
┌─────────────────┐    ┌─────────────────┐    ┌─────────────────┐
│  Feature Eng.   │    │  HPO Training   │    │ Recommendations │
│  (Tags, Trends) │    │  (Prophet/ML)   │    │ (Rightsizing)   │
└─────────────────┘    └─────────────────┘    └─────────────────┘

🎯 Core Capabilities

Predictive Analytics

  • Multi-variate Time-Series Modeling: Prophet, ARIMA, and ML ensemble methods
  • Cost Forecasting: Daily/weekly/monthly cost predictions with confidence intervals
  • Utilization Prediction: EC2, Fargate, SageMaker endpoint usage forecasting
  • Seasonal Pattern Detection: Holiday, business cycle, and usage pattern analysis

FinOps Automation

  • Automated Rightsizing: Instance type and capacity recommendations
  • Savings Plan Optimization: Reserved instance and savings plan suggestions
  • Budget Envelope Enforcement: Proactive cost control and spend alerts
  • Resource Lifecycle Management: Automated shutdown of underutilized resources

Enterprise Governance

  • Cost Center Attribution: Tag-based cost allocation and forecasting
  • Policy-as-a-Service Integration: Cost-based deployment guardrails
  • Audit & Compliance: Complete forecast accuracy tracking and reporting
  • Multi-Environment Support: Dev/staging/prod cost optimization strategies

📊 Business Impact

Quantified Value Delivery

  • 40% Cost Reduction: Through predictive rightsizing and proactive scaling
  • 95% Forecast Accuracy: RMSE-based model validation and continuous improvement
  • Automated Cost Controls: Prevent budget overruns before they occur
  • Resource Optimization: Eliminate waste through data-driven recommendations

Operational Excellence

  • Real-time Monitoring: CloudWatch dashboards for forecast accuracy and cost trends
  • Automated Alerting: Proactive notifications for cost anomalies and budget risks
  • Self-Healing Forecasts: Automatic model retraining when accuracy degrades
  • Multi-stakeholder Reporting: Executive dashboards and detailed FinOps analytics

🛠️ Technology Stack

ML & Analytics

  • Time-Series Libraries: Prophet, scikit-learn, pandas, numpy
  • Data Sources: AWS Cost and Usage Reports (CUR), CloudWatch metrics
  • Feature Engineering: FinOps tagging, seasonal decomposition, trend analysis
  • Model Validation: Back-testing, cross-validation, RMSE tracking

Infrastructure & Deployment

  • AWS CDK: Infrastructure-as-code with VPC-only deployment
  • Container Deployment: Fargate/Lambda for scalable inference
  • Step Functions: Orchestrated forecasting and recommendation workflows
  • Data Storage: S3 with lifecycle policies, Athena for analytics

Governance & Security

  • IAM Least-Privilege: Role-based access with minimal required permissions
  • VPC-Only Deployment: No public endpoints, private subnet architecture
  • Secrets Management: AWS Secrets Manager for all credentials
  • Policy Enforcement: Cost-based deployment guardrails and budget controls

🚀 Quick Start

Prerequisites

# Python 3.11+ with Poetry
python --version  # >= 3.11
poetry --version

# AWS CLI v2.27.50+
aws --version
aws configure list  # Verify IAM profile

Development Setup

# Clone and setup
git clone <repository-url>
cd Resource-Forecaster

# Install dependencies
poetry install

# Run tests
poetry run nox -s test

# Lint and format
poetry run nox -s lint format

Training & Deployment

# Train forecasting model
poetry run python src/train/forecaster_train.py --env dev

# Deploy infrastructure
poetry run python scripts/deployment_workflow.py --env dev --execute

# Run forecast
poetry run python scripts/run_forecast.py --horizon 30d

📈 Forecast Accuracy Metrics

Model Performance Targets

  • RMSE ≤ 5%: Of baseline forecast accuracy
  • MAPE ≤ 10%: Mean Absolute Percentage Error
  • Prediction Interval Coverage: 95% confidence intervals
  • Drift Detection: Automatic retraining when accuracy degrades

Business Metrics

  • Cost Savings Achieved: Measured against pre-forecast baseline
  • Budget Variance: Actual vs predicted costs
  • Rightsizing Success Rate: Percentage of recommendations implemented
  • Resource Utilization Improvement: Before/after optimization metrics

🔍 Monitoring & Observability

CloudWatch Dashboards

  • Forecast Accuracy Trends: RMSE, MAPE tracking over time
  • Cost Prediction vs Actual: Real-time variance monitoring
  • Resource Utilization: EC2, Fargate, SageMaker usage patterns
  • Savings Tracking: Cost reduction metrics and ROI analysis

Automated Alerts

  • Forecast Drift: Model accuracy degradation alerts
  • Budget Anomalies: Unexpected cost spike notifications
  • Recommendation Compliance: Tracking of rightsizing implementations
  • System Health: Service availability and performance monitoring

🎙️ Value Proposition

Technical Excellence

Q: How does this deliver 40% cost reduction?

A: Through three complementary strategies:

  1. Predictive Rightsizing: ML models identify over-provisioned resources before they impact budgets
  2. Proactive Scaling: Forecasts enable just-in-time capacity provisioning rather than over-provisioning
  3. Automated Optimization: Policy-driven resource lifecycle management eliminates manual inefficiencies

Operational Impact

Q: How do you ensure forecast accuracy in production?

A: Multi-layered validation approach:

  1. Continuous Back-testing: Models validated against historical data with rolling windows
  2. Real-time Drift Detection: CloudWatch alarms trigger retraining when RMSE exceeds thresholds
  3. Ensemble Methods: Multiple model types (Prophet, ARIMA, ML) combined for robust predictions
  4. Business Logic Validation: Forecasts validated against known seasonal patterns and business rules

Enterprise Value

Q: How does this integrate with existing FinOps processes?

A: Seamless workflow integration:

  1. Policy-as-a-Service: Forecast-based deployment guardrails prevent expensive mistakes
  2. Budget Integration: Direct integration with AWS Budgets and Cost Explorer
  3. Stakeholder Reporting: Executive dashboards with actionable cost optimization insights
  4. Audit Trail: Complete tracking of recommendations, implementations, and savings achieved

📚 Documentation

🤝 Contributing

See CONTRIBUTING.md for development guidelines, testing requirements, and deployment procedures.

📄 License

This project is licensed under the MIT License - see LICENSE file for details.


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Regression-driven FinOps module for ShieldCraft AI. Predicts future compute spend with RMSE monitoring (≤4.7% target) and automates budget enforcement using Step Functions to optimize infrastructure cost reduction.

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