Paying only for what you need and when you need it in AWS sounds tempting, right? In fact, you may presume that it includes AWS cost optimization in itself. Yet, everybody using cloud services is aware that sometimes costs may pile up!
Despite the various cost-saving options that AWS offers, cost optimization does not happen by itself. One needs to both build a relevant understanding of the way it works and design a proper strategy to achieve it.
Today, we will be looking at how AWS cost optimization may be accomplished. More specifically, we will present some cost-saving ideas about the AWS cloud services that we use. We will also outline the top 10 AWS cost-reduction strategies that can help us put our approach into practice.
Interested in finding out some tips on how to save on bills? Keep on reading!
How to come up with a cost optimization strategy?
First things first. There are different approaches to coining the specific steps you need to make to come up with an AWS cost-reduction strategy. They may depend on several factors, including your cloud architecture, which is why you must first focus on your unique business case.
One practical way of doing so, for example, is to study the current state of your usage against the possibilities of AWS saving plans and options. Based on this, you can analyze your consumption, identify your waste, and apply relevant AWS cost-optimization techniques to adjust usage and reduce bills accordingly.
Next, you may introduce continuous monitoring over your cloud usage. This is widely recommended as a key step to stay in control of the way your costs accrue. The list of topics you will need to cover, however, may be a bit long! Take a look at the picture below to get an idea:
Let us now see how we can make this manageable.
10 best cost-saving practices for AWS
As illustrated above, a key aspect of AWS cost optimization may relate to the available AWS pricing models and options. To achieve the best effect, you need to apply them smartly!
One of the most straightforward ways to do it is by exploring the 10 best cost-saving practices proposed by AWS. We may group them along the three main dimensions of savings models, tools for matching capacity and demand, and ways for reducing consumption waste.
Concerning savings models, explore the option of using AWS reserve capacity and savings plans. By investing in reverse capacity, AWS enables you to save up to 75% over equivalent on-demand capacity. Some of the cost-optimization techniques here include:
- Pick up the pricing model that best fits your needs – if you pay upfront, you will pay less by taking the greatest discount
- Repurpose unused reserved instances (RIs) – allocate resources properly to projects. If you come up with excess capacity, consider selling it on the AWS marketplace
To explore this further, browse our dedicated article AWS Basics: How Achieve Awesome Cloud Budgets by AWS Reserved Capacity.
Second, align capacity with demand. Here is what leading AWS experts recommend:
- Stop or right-size Amazon EC2 instances with low utilization to avoid paying for resources that you do not use
- Use Trusted Advisor to identify idle DB instances
- Use Autoscaling or On-Demand for analyzing Amazon DynamoDB with the help of the Amazon CloudWatch
Third, identify your waste by implementing techniques such as:
- Optimize Storage – you could clean EBS Volumes and try Amazon S3 RSS (Reduced Redundancy Storage) for reducing cost by 15%. Also, explore S3 Intelligent-Tiering to automatically move objects to the appropriate storage tier. Finally, monitor unused snapshots used for back-ups – you could include regular deletion for outdated snapshots
- Upgrade instances to the latest generation to assure optimal performance
- Review networking by deleting idle load balancers
- Optimize data transfer – your infrastructure and framework should be designed in the best way to facilitate it
- Introduce continuous monitoring of resources to re-adjust usage when needed
If you are interested in researching these tips further, don’t wait and drop us a line. We suggest, however, that while exploring, you try to compile a list of individual cost-saving techniques you wish to test and apply.
Some other cost optimization tips to consider
While using AWS, make sure that you take full advantage of the value-added the platform delivers. And it can offer a lot – both by its focused support resources such as native cost-saving tools and guidelines and by the relevant contribution of third parties, which form an essential part of its expert community.
Use AWS Native Cost-Saving Tools and Resources
First and foremost, make the best use of AWS native financial tools such as the ones on the snapshot below:
Be aware that the picture above is illustrative only. This batch of solutions may also include tools such as Billing and Cost Management Console, AWS Budget Actions, etc. You may explore some relevant further advice on what to use here.
Another great source of AWS financial guidance is provided by the AWS Cloud Financial Management Resources Center. Here, you will encounter pretty much of everything – from full financial management guides to tutorials revealing the business value of AWS. Do take your time to introduce yourself to the centre!
Third-Party Cost Management Tools
Finally, plan some research on the cost management tools that the extended AWS business community continuously introduces. You could start by exploring tools such as Cloud Checker, CloudHealth (VMWare), and Centilytics, to name a few.
Remember, your cost-saving perspective and approach may be truly enriched if you regularly follow the AWS network. Tailored guides such as this one can appear to be a great facilitator in your cost-saving decisions too.
Developing and implementing an AWS cost optimization strategy is often attainable by finding your best AWS utilization, applying proven cost-optimization practices and choosing smartly the best cost optimization tools for your individual business case. Should you need some help in reducing your AWS bills, do not hesitate to contact us.