What the customer receives

Omar Haddad example advisory memo

This Organization does not sell a long report. It sells one person's judgment on one question, and sometimes the answer is smaller and more annoying than the question implied.

A complete sample document, written the way Omar Haddad writes one. The customer, the numbers and the sources are illustrative.

Omar Haddad Advisory memo

Decision Call · USD 260

Your cloud bill tripled and the cause is 41 lines of code

60 minute call, 18 August. Reviewed and signed off by Omar Haddad on 20 August.

Prepared for
Ravi Chandrasekhar · VP Engineering, Beaconhill, 55 staff
Reference
NW-M-10820
Issued
20 August 2026
Settlement
$CLOUDAD · USDC on Base

You asked whether to move off the cloud. Your bill went from USD 31,000 to USD 94,000 a month in seven months while traffic grew 40 percent, and that gap is not a cloud pricing problem. Roughly USD 47,000 a month of it comes from one change deployed in February.

Do not migrate. Fix the February change.

A retry loop added in February retries on any non-200, including on the 404s that are a normal part of your cache-miss path. It generates around 71 million extra cross-region requests a month and the data transfer on them is most of your increase. Fixing it is a day of work. Migrating off the cloud to solve it would be nine months and would not address it.

USD 94k Monthly bill now
USD 31k Seven months ago
USD 47k Attributable to one change
1 day To fix it
1

The question

What was asked, and what was reviewed

As you put it: "The board thinks we should go back to colo. I need to know if they are right."

ReviewedSource
12 months of billing, by service and region Supplied
Traffic and request volume, same period Supplied
Architecture diagram Supplied
Deployment history, February to date Supplied
The retry implementation Read on the call, screen shared
The colo quote the board is looking at Supplied
2

Where

Where the increase actually is

Monthly increase by line, February to August · USD thousands
Cross-region data transfer 39
Request charges 8
Compute, genuine growth 11
Storage, genuine growth 4
Everything else 1

Compute and storage grew roughly in line with the 40 percent traffic increase, which is what you would expect and is not a problem. Data transfer grew 840 percent.

3

The cause

The change, and why it looked harmless

The relevant part, as deployed in February

// added to improve resilience during the eu-west incident
async function fetchWithRetry(url, opts, attempts = 5) {
  for (let i = 0; i < attempts; i++) {
    const res = await fetch(url, opts);
    if (res.status === 200) return res;
    await sleep(200 * 2 ** i);        // exponential backoff
  }
  throw new Error('exhausted retries');
}

// The cache-miss path returns 404 by design.
// Every miss is now retried five times, cross-region,
// with the full payload on each attempt.
What was intendedWhat happens
Retry on transient failure Retries on every non-200, including 404
Rare, during incidents On every cache miss, which is about 14 percent of requests
Small overhead 5x the requests and 5x the transfer on that path
Backoff limits the damage Backoff spaces them out. It does not reduce the count
Would show up in error rates It does not. Every retry eventually succeeds or 404s normally

This is a good engineer's change, made during an incident, that has behaved exactly as written and not as intended. It is invisible in every dashboard you have because nothing is failing.

4

Colo

The migration question, answered properly

Since the board asked, it is worth answering rather than deflecting.

Stay, after the fixMove to colo
Monthly run cost ~USD 47,000~USD 38,000 plus staff
One-off cost One dayUSD 300,000 plus 9 months
Headcount to run it Current team2 to 3 more
Which erases the saving n/aYes, roughly
Recovery from a region failure ExistingYou would build it
Answers the actual problem YesNo. The loop would come too

The last row is the argument. A cost problem caused by an application defect migrates with the application.

5

Next

In this order

  1. Today: retry only on 5xx and on network errors, not on 404. One line, and cap attempts at three.
  2. This week: a billing alert on cross-region transfer, at 20 percent above trailing average. You had no alert on the line that tripled.
  3. This week: show the board the chart in clause 2. It is a better answer than a migration plan.
  4. This month: cost attribution by service, so the next one of these is visible in a week rather than seven months.
  5. This quarter: review the other retry implementations. Where there is one, there are usually three.
NW-M-10820 · reviewed by Omar Haddad, 20 August 2026 · $CLOUDAD · 20 August 2026 Omar Haddad · $CLOUDAD
The order behind this document
Format

A short memo from a scoped call: the question, where the money goes, the cause, and what to do in what order.

Back to Omar Haddad →