Overview

Duration	35 minutes
Level	Intermediate
Prerequisites	Lab 01

Learning Objectives

By the end of this lab, you will be able to:

• Configure Infracost with an API key and project settings
• Run infracost breakdown to estimate monthly infrastructure costs from Bicep templates
• Use infracost diff to compare cost changes between Bicep revisions
• Convert Infracost JSON output to SARIF using the infracost-to-sarif.py converter
• Understand how the PR cost gate workflow blocks expensive changes

Exercises

Exercise 5.1: Configure Infracost

You will set up Infracost with an API key and review the project configuration.

1. Register for a free Infracost API key at infracost.io if you have not already.

2. Configure the API key:

   infracost configure set api_key YOUR_API_KEY
   

3. Verify the configuration:

   infracost configure get api_key
   

4. Open src/config/infracost.yml and review the project configuration:

   version: 0.1
   projects:
     - path: infra/
       name: finops-demo-app
   

   This tells Infracost to scan the infra/ directory within each demo app for Bicep or Terraform templates.

[!TIP] Infracost uses cloud pricing APIs to estimate costs. It does not require deployed resources — it analyses IaC templates and maps resource types to current pricing data. This makes it ideal for pre-deployment cost checks in CI/CD pipelines.

Exercise 5.2: Cost Breakdown — App 002

You will generate a cost breakdown for the oversized resources demo app.

1. Create the reports directory:

   mkdir -p reports
   

2. Run the Infracost breakdown against app 002:

   infracost breakdown --path finops-demo-app-002/infra/ --format json --out-file reports/infracost.json
   

3. View the human-readable summary:

   infracost breakdown --path finops-demo-app-002/infra/
   

   The table output shows each resource, its SKU or tier, and the estimated monthly cost.

4. Open reports/infracost.json and review the structure:
   • projects — array of scanned IaC paths
   • totalMonthlyCost — total estimated monthly cost across all resources
   • resources — individual resource cost breakdowns with line-item pricing
5. Note the cost of the P3v3 App Service Plan. This is the oversized resource that app 002 intentionally deploys — a premium tier plan for a development workload.

[!NOTE] App 002 uses a P3v3 App Service Plan and Premium storage. These are expensive tiers intended for production-grade workloads. Infracost makes the monthly cost immediately visible so you can make informed decisions before deploying.

Exercise 5.3: Cost Diff

You will modify a SKU in app 002’s Bicep template and use infracost diff to see the cost impact.

1. Open finops-demo-app-002/infra/main.bicep in your editor.

2. Find the App Service Plan SKU and change it from P3v3 to B1 (Basic tier):

   // Before:
   // sku: { name: 'P3v3', tier: 'PremiumV3' }
   
   // After:
   sku: { name: 'B1', tier: 'Basic' }
   

3. Run infracost diff to compare the cost of the modified template against the baseline:

   infracost diff --path finops-demo-app-002/infra/ --compare-to reports/infracost.json
   

4. Review the diff output. It shows:
   • Resources with increased cost (▲)
   • Resources with decreased cost (▼)
   • The net monthly change from the modification

5. The diff should show a significant cost reduction from downgrading P3v3 to B1 — this demonstrates why right-sizing matters for FinOps governance.

6. Revert the change to main.bicep so it does not affect later labs:

   git checkout finops-demo-app-002/infra/main.bicep
   

[!IMPORTANT] Always revert intentional Bicep changes after completing this exercise. The demo apps are designed with specific violations, and modifying them permanently can affect Labs 06 and 07.

Exercise 5.4: Convert to SARIF

You will convert the Infracost JSON output to SARIF format.

1. Run the SARIF converter:

   python src/converters/infracost-to-sarif.py reports/infracost.json reports/infracost.sarif
   

2. Open the generated SARIF file:

   cat reports/infracost.sarif
   

3. Review the SARIF structure:
   • The tool.driver.name is set to infracost-to-sarif
   • Each resource with a monthly cost above a threshold is reported as a finding
   • The message.text includes the estimated monthly cost for the resource
   • The physicalLocation points to the Bicep file that defines the resource
4. This SARIF file can be uploaded to the GitHub Security tab alongside PSRule, Checkov, and Cloud Custodian results to provide a unified view of cost governance findings.

Exercise 5.5: Review Cost Gate Workflow

You will walk through the GitHub Actions workflow that blocks expensive infrastructure changes in pull requests.

1. Open .github/workflows/finops-cost-gate.yml and review the workflow structure:

   name: FinOps Cost Gate
   
   on:
     pull_request:
       branches: [main]
       paths: ['infra/**']
   

   The workflow triggers on pull requests to main that modify files under infra/.

2. Review the workflow steps:
   • Setup Infracost — installs the Infracost CLI with the API key from repository secrets
   • Generate Infracost baseline — runs infracost breakdown to capture the current cost
   • Run Infracost diff — compares the PR changes against the baseline
   • Post PR comment — uses infracost comment github to add a cost summary comment to the PR
   • Convert to SARIF — generates a SARIF file from the Infracost diff output
   • Upload SARIF — uploads the SARIF file to the GitHub Security tab

3. Note the infracost comment github command:

   infracost comment github \
     --path infracost-output.json \
     --repo $ \
     --pull-request $ \
     --github-token $ \
     --behavior update
   

   The --behavior update flag updates the existing comment instead of creating duplicates on each push.

4. This workflow creates a cost gate — reviewers can see the cost impact of infrastructure changes directly in the PR before approving.

[!TIP] In production, you can extend the cost gate to fail the PR check if costs exceed a threshold. Add a step that reads totalMonthlyCost from the Infracost JSON and compares it against a budget limit.

Verification Checkpoint

Before proceeding, verify:

• Infracost authenticated and returning cost estimates
• Cost breakdown generated for at least 1 demo app
• Observed cost difference using infracost diff after modifying a SKU
• SARIF file generated from Infracost output

Next Steps

Proceed to Lab 06 — SARIF Output and GitHub Security Tab.