This document will walk you through how Lucidity calculates your savings.
Overview
Savings Drilldown provides a detailed, transparent view into how Lucidity generates storage cost savings. It breaks total savings into two distinct components—Cost Reduced and Cost Prevented—and explains the logic behind each, down to individual instances and time periods.
This helps customers, FinOps teams, and auditors clearly understand why savings occurred, not just how much was saved.
What Problem This Solves
Explains savings without requiring CS walkthroughs
Separates real right-sizing from behavioral optimization
Helps customers validate savings internally
How savings are structured
Lucidity savings are composed of two complementary mechanisms:
1. Cost Reduced
What it means
Savings from actual right-sizing, where Lucidity reduced the provisioned storage size.
When it happens
Storage was over-provisioned
Lucidity safely shrank provisioned capacity
You paid less as a result
In short: provisioned size went down.
2. Cost Prevented
What it means
Savings from how Lucidity manages expansions as data grows.
Key idea
Without Lucidity, storage is typically expanded:
Earlier than strictly necessary
In larger, conservative steps
With Lucidity:
Expansions still happen
But they occur later and in smaller, incremental steps
The cost difference between these two behaviors is cost prevented.
In short: provisioned size increased more gradually than it otherwise would have.
What you can see in Savings Drilldown
Savings Overview
Total savings to date
Split between cost reduced and cost prevented
Entry point into detailed analysis
Savings Composition
Visual breakdown of savings into:
Cost reduced
Cost prevented
Shows how both together contribute to total savings
Instance-level views
See which instances contributed to savings
Separate views for:
Cost reduction
Cost prevention
Instances can contribute to both
Expansion explanations (Cost Prevented)
See when Lucidity projected an expansion without Lucidity
Understand:
Why an expansion would have occurred
How much capacity would have been added
Why Lucidity expanded differently
How projected savings are calculated
Lucidity compares:
Actual provisioned capacity (with Lucidity)
Projected provisioned capacity (without Lucidity)
Savings are calculated as the cost difference between the two, using standard cloud pricing and billing units.
Daily savings = (Projected provision − Actual provision) × rate × time
All calculations are based on observable data trends and cloud-specific sizing rules.
What this does not do
Does not rely on vague benchmarks or industry averages
Does not assume “no expansion” scenarios
Does not include enterprise discounts or negotiated CSP pricing