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Co-authored-by: Anthony <russo555@gmail.com>
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content/well-architected-framework/docs/docs/optimize-systems/manage-cost/create-cloud-budgets.mdx

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Anomaly detection identifies unusual spending patterns rather than absolute thresholds. For example, if your monthly EC2 spending suddenly doubles from $2,000 to $4,000 but remains under your $5,000 budget, a budget alert would not trigger. However, anomaly detection would flag this unusual increase for investigation. Anomaly detection helps you catch issues like misconfigured autoscaling, forgotten resources, or unauthorized usage before they significantly impact costs.
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Most cloud providers offer machine learning-based anomaly detection that learns your normal usage patterns and alerts you when spending deviates from the baseline. You can configure anomaly detection using Terraform for AWS Cost Anomaly Detection and Azure Cost Management.
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Most cloud providers offer machine learning-based anomaly detection that learns your normal usage patterns and alerts you when spending deviates from the baseline. You can configure anomaly detection with AWS Cost Anomaly Detection and Azure Cost Management using Terraform.
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The following is an example Terraform code that sets up a cost anomaly detection with email alerts in AWS. This cost anomaly detection will detect the previous EC2 scenario.
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The following is an example Terraform configuration that sets up cost anomaly detection with email alerts in AWS. This cost anomaly detection will detect the previous EC2 scenario.
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```hcl
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resource "aws_ce_anomaly_monitor" "test" {

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