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AWS Cost Optimization: Best Practices for Reducing AWS Bill

Posted on October 29, 2022 by

Categories: AWS

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You may create cutting-edge, scalable apps to suit your demands with AWS (Amazon Web Services), which gives you the control and ongoing spending optimization you need.

The variety of service and price choices offered by AWS provide you the freedom to successfully control expenses while preserving the performance and capacity you require. Start carrying out the above actions now to directly affect your bill and lower your AWS expenses.

Try reading our blog article if you want to learn more about AWS cost optimization tools: 8 AWS Cloud Tools and Strategies for Cost Optimization

What does AWS’s cost optimization mean?

One of the cornerstones of the Well-Architected architecture for AWS is cost optimization.

It focuses on obtaining the system/workload at the lowest cost possible in the AWS environment. While keeping in mind your account requirements, you should optimise expenses while keeping things like performance, security, and dependability in mind.

Understanding the value of AWS and keeping track of and managing your AWS consumption and expenditures are crucial as you move workloads to AWS and utilise more AWS services.

Why does AWS cost so much?

The pricing and utilisation of AWS Cloud resources are closely correlated. To control and optimise expenses, businesses must rely on solid governance and user behaviour.

  • The primary causes of unnecessary spending on the AWS Cloud are as follows:
  • erroneously managed cloud resources: idle, underused, and overstocked.
  • Pricing complexity and expenditure prediction difficulties.
  • Over 200 fully featured services are available through AWS, and with many possibilities come many alternatives.

The StormIT team considers cost optimization of cloud services as one of the primary topics when designing technological solutions for Amazon Web Services (AWS). We always seek to reduce expenses, but this is impossible without the right expertise, which the StormIT team can provide.

AWS Cloud cost optimization pillars: GET A CLOUD CHECK-UP

No matter your workload or architecture, there are five cost optimization pillars that practically all situations should follow. The foundational elements of AWS cost optimization are:

1. Proper size

Excellent advice from AWS is to “always right-size then reserve.”

This is done in order to choose the best instance for the resources you have and plan to utilise. As a result, you should always pick the cheapest instance that still matches your performance requirements. You must identify the instances that may be scaled down by examining the consumption of CPU, RAM, storage, network, etc.

To watch metrics and trigger alarms, you should always utilise Amazon CloudWatch so that we can respond quickly. To guarantee that your supply constantly meets demand, you must make sure that resources are delivered in accordance with your demands.

2. Make elasticity greater

Increasing elasticity entails giving your application more flexibility and utilising these resources only when necessary while shutting them off when not in use.

It’s crucial to keep in mind that using fewer smaller instances sometimes instead of more large ones can save money.

When necessary, you may schedule active workloads using AWS Auto Scaling. The instance that supports the test environment must thus be constantly on, but what about your production instance? Maybe these instances could be turned off when not in use or outside of business hours. For your Amazon EC2 and RDS instances, AWS offers a service called AWS Instance Scheduler that generates unique start and stop schedules.

3. Use the appropriate pricing strategy

You must pick the appropriate pricing model following the selection of the proper size instance and the creation of elasticity using Auto Scaling or the scheduling function. Reserved Instances are a great way to cut costs and lower the price of the ideal workload.

AWS offers Trusted Advisor and Cost Explorer to help us choose the appropriate price plan.

You may pick from the on-demand instances, reserved instances, and spot instances pricing models offered by AWS.

4. Improve storage

A continuous procedure goes into maintaining storage that is the proper size and cost. You should optimise storage each month in order to get the most out of your storage costs.

This work can be made simpler in the following ways:

Create a system for continually adjusting storage and deciding how to use storage.

Utilize AWS Budgets, AWS Cost Explorer, and Detailed Billing Reports (DBR) in the Billing and Cost Management UI to keep a careful eye on expenses.

Set up an S3 lifecycle plan and use Amazon S3 object tagging to constantly optimise data storage throughout the data lifespan.

5. Track, evaluate, and enhance

The goal of the fifth pillar is to constantly reduce expenses by measuring and monitoring your surroundings, then repeating the process if there are any changes.

To continuously optimise costs, measure, monitor, and improve. The most crucial action you can do is to create KPIs, put cost allocation tags and tags into place, and then regularly assess your strategy.

AWS best practises for cost optimization

These are the top six categories for cost minimization best practises:

1. Awareness of expenditures and usage

With AWS, you have more flexibility and agility, which removes the need for manual procedures and the time spent configuring on-premises infrastructure. In order to implement this infrastructure, you no longer need to bargain for costs, oversee purchases, coordinate shipping, and then oversee your staff. AWS makes everything easier and quicker, but this accessibility and limitless processing capacity on demand need a shift in how you think about your costs.

You can identify the goods and services that are making you money by using accurate cost attribution, which also enables you to manage your budget wisely.

Therefore, you need to know how you manage and keep an eye on your consumption. How are wasted resources deactivated?

The cost allocation tags are the key to this solution. Applying tags to AWS resources allows you to create custom use statistics and identify resources or projects that have been shelved because they are no longer useful.

You may configure alerts to alert you when you reach an overspend using Cost Explorer and AWS Budgets.

2. Resources that are affordable

The secret to cost reductions is using resources that are cost-effective, and AWS employs the right instances and resources for your task. The most cost-effective resources are used by well-architected applications, and you may leverage AWS Managed Services to further cut expenses. In order to decrease your consumption and expenses, AWS also offers suitable service alternatives, flexible and affordable pricing options, and flexible payment terms.

3. Cut back on data transmission expenses

The cost of transferring data from AWS resources (EC2, S3) to your consumers’ access to the public internet might be high. You can often lower the cost of data transfer out (DTO) to the open internet by caching static or dynamic web content at Amazon CloudFront edge sites across the world.

With StormIT’s optimised pricing, you may reduce your CDN costs by up to 60%.