diff --git a/deploy/cec-prd-cluster/cost.yaml b/deploy/cec-prd-cluster/cost.yaml
index af93b00..20cb9a9 100644
--- a/deploy/cec-prd-cluster/cost.yaml
+++ b/deploy/cec-prd-cluster/cost.yaml
@@ -17,7 +17,7 @@ spec:
     spec:
       containers:
         - name: cost
-          image: fiskercloud.azurecr.io/cost:v11
+          image: fiskercloud.azurecr.io/cost:v12
           imagePullPolicy: IfNotPresent
           ports:
             - containerPort: 8077
diff --git a/services/cost/README.md b/services/cost/README.md
index b2a6638..aefdc56 100644
--- a/services/cost/README.md
+++ b/services/cost/README.md
@@ -24,18 +24,14 @@ Whether you have 100 vehicles or 100,000, you still need Kafka, databases, and g
 
 ### Platform Base Resources (Fixed)
 
-What it takes to run the cloud services platform:
+What it takes to run the cloud services platform (from migration plan v1.1):
 
 | Component | CPU (cores) | Memory (GB) | Notes |
 |-----------|-------------|-------------|-------|
-| Kafka brokers | 32 | 128 | 3-node cluster |
-| ClickHouse | 64 | 256 | 3 shards for HA |
-| MongoDB | 16 | 128 | Replica set |
-| Redis | 16 | 128 | Cluster mode |
-| PostgreSQL | 32 | 128 | Primary + replicas |
-| Gateway services | 8 | 64 | API gateway, auth |
-| Monitoring/logging | 8 | 64 | Prometheus, Grafana, Loki |
-| **Total Platform Base** | **176** | **896** | |
+| VM 1-4: Core Services | 16 | 64 | Kafka, OTA, Valet, Auth/APIs |
+| VM 5: Analytics Primary | 32 | 256 | ClickHouse, Ditto, Beacon, Jetfire |
+| VM 6: Analytics Secondary | 32 | 256 | Optimus, Cargo, Vehicle Analytics |
+| **Total Platform Base** | **80** | **544** | Based on migration plan |
 
 ### Per-VIN Resources (Marginal)
 
@@ -51,19 +47,19 @@ Incremental resources needed for each additional connected vehicle:
 
 | Resource | Cloud (Azure) | On-Prem/Bare Metal |
 |----------|---------------|-------------------|
-| CPU/core-hour | $0.30 | $0.02 |
-| Memory/GB-hour | $0.08 | $0.005 |
-| Managed Services/15min | $10.00 | $2.50 |
+| CPU/core-hour | $0.35 | $0.015 |
+| Memory/GB-hour | $0.10 | $0.004 |
+| Managed Services/15min | $17.00 | $1.50 |
 
-#### Why On-Prem is ~90% Cheaper
-- **Platform base**: Same hardware, but cloud charges ~15x more for managed services
-- **Per-VIN compute**: Cloud VMs cost ~15x more than amortized bare metal
-- **Managed services**: Event Hubs, CosmosDB, etc. have significant markup vs self-hosted equivalents
+#### Why On-Prem is ~90-95% Cheaper
+- **Platform base**: Same workload, but cloud charges ~20x more for managed services
+- **Per-VIN compute**: Cloud VMs cost ~20x more than amortized bare metal
+- **Managed services**: Event Hubs, CosmosDB, Azure DB for PostgreSQL have significant markup vs self-hosted
 
 ### Savings Calculation
 
 ```
-Platform Base Cost = (176 cores × rate + 896 GB × rate) × hours
+Platform Base Cost = (80 cores × rate + 544 GB × rate) × hours
 Per-VIN Cost = (0.05 cores × rate + 0.08 GB × rate) × hours × activity_multiplier
 Total Cost = Platform Base + (Per-VIN × VIN count) + Managed Services
 
@@ -73,18 +69,17 @@ Savings = Cloud Cost - On-Prem Cost
 Savings % = (Savings / Cloud Cost) × 100
 ```
 
-Expected savings: **~90%** with on-prem/bare metal hosting.
+Expected savings: **~90-95%** with on-prem/bare metal hosting.
 
-### Projected Annual Costs (5000 vehicles)
+### Projected Annual Costs
 
-Based on ~$100k/month cloud spend:
+Based on ~$1M/year Azure spend (migration plan v1.1):
 
 | Metric | Cloud | On-Prem |
 |--------|-------|---------|
-| Monthly Cost | ~$100,000 | ~$9,500 |
-| Annual Cost | ~$1,200,000 | ~$114,000 |
-| Per Vehicle/Month | ~$20.00 | ~$1.90 |
-| Annual Savings | ~$1,086,000 (90%) | - |
+| Monthly Cost | ~$83,000 | ~$7,000 |
+| Annual Cost | ~$1,000,000 | ~$84,000 |
+| Annual Savings | ~$916,000 (92%) | - |
 
 ## API Endpoints
 
diff --git a/services/cost/cost b/services/cost/cost
deleted file mode 100755
index 5be1540..0000000
Binary files a/services/cost/cost and /dev/null differ
diff --git a/services/cost/services/collector.go b/services/cost/services/collector.go
index 9ce8139..b5d83d4 100644
--- a/services/cost/services/collector.go
+++ b/services/cost/services/collector.go
@@ -8,16 +8,18 @@ import (
 
 // Cost rates per hour
 const (
-	// Cloud costs (based on ~$100k/month for ~5000 vehicles)
-	// Includes: AKS compute, Event Hubs (Kafka), CosmosDB, storage, networking, monitoring
-	CloudCPUPerCoreHour   = 0.30  // $/core/hour (Azure D-series + managed services + support)
-	CloudMemoryPerGBHour  = 0.08  // $/GB/hour (includes managed DB, Redis, caching layers)
+	// Cloud costs (based on ~$1M/year = ~$83k/month Azure spend)
+	// Includes: AKS compute, Event Hubs (Kafka), CosmosDB, Azure DB for PostgreSQL,
+	// Azure Cache for Redis, Blob Storage, networking, monitoring, support
+	CloudCPUPerCoreHour   = 0.35  // $/core/hour (Azure D-series + managed services + support)
+	CloudMemoryPerGBHour  = 0.10  // $/GB/hour (includes managed DB, Redis, caching layers)
 
 	// On-prem/bare metal costs (amortized hardware only)
+	// Based on migration plan: 6 VMs, 80 cores, 544GB RAM, 17TB storage
 	// Assumes: 3-year hardware amortization, minimal ops overhead
 	// Does NOT include: datacenter, power, cooling, staff, network
-	OnpremCPUPerCoreHour  = 0.02  // $/core/hour
-	OnpremMemoryPerGBHour = 0.005 // $/GB/hour
+	OnpremCPUPerCoreHour  = 0.015 // $/core/hour (~95% cheaper than cloud)
+	OnpremMemoryPerGBHour = 0.004 // $/GB/hour
 
 	// Per-VIN resource usage (marginal cost per vehicle)
 	// This is the incremental CPU/RAM needed for each additional connected vehicle
@@ -26,16 +28,18 @@ const (
 	PerVinMemoryGB  = 0.08  // 80MB per VIN (marginal)
 
 	// Platform base resources (fixed cost regardless of VIN count)
-	// This is the minimum infrastructure to run the cloud services platform:
-	// Kafka brokers, ClickHouse, MongoDB, Redis, PostgreSQL, gateway services, etc.
-	PlatformBaseCPUCores  = 176.0  // 176 cores for base platform
-	PlatformBaseMemoryGB  = 896.0  // 896GB RAM for base platform
+	// Based on migration plan production environment:
+	// VM1-4: 64GB RAM, 16 cores (Kafka, OTA, Valet, Auth/APIs)
+	// VM5-6: 512GB RAM, 64 cores (ClickHouse, Analytics, Vehicle Data)
+	// Total: 80 cores, 544GB RAM
+	PlatformBaseCPUCores  = 80.0   // 80 cores for base platform (from migration plan)
+	PlatformBaseMemoryGB  = 544.0  // 544GB RAM for base platform (from migration plan)
 
 	// Base infrastructure cost per collection interval (managed services, storage, networking)
-	// Cloud: Event Hubs, CosmosDB, Azure Storage, Defender, monitoring (~$45k/month)
-	// On-prem: ~75% cheaper - just hardware amortization for equivalent capacity
-	BaseInfraCloudCost  = 10.00 // $/15min for managed services (cloud)
-	BaseInfraOnpremCost = 2.50  // $/15min for equivalent on-prem (75% cheaper)
+	// Cloud: Event Hubs, CosmosDB, Azure Storage, Defender, monitoring (~$50k/month of $83k total)
+	// On-prem: ~90% cheaper - just hardware amortization + minimal hosting
+	BaseInfraCloudCost  = 17.00 // $/15min for managed services (cloud) - ~$50k/month
+	BaseInfraOnpremCost = 1.50  // $/15min for equivalent on-prem (~91% cheaper)
 )
 
 // CalculateCosts computes cloud and on-prem costs for given resource usage