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Optimising costs on AWS

Optimising costs is a critical part of managing resources on the AWS platform. Amazon web services provides the best practices and tools to help their users optimise costs effectively.  

What is AWS? have provided us the comprehensive and widely used cloud computing platform called AWS (Amazon Web Services). They have designed the services to help individuals, business and organisations scale and grow by having an on-demand access to their wide range of computing resources.  They offer pay-as-you-go pricing and change resources based on demand, which makes AWS popular with businesses of all sizes. It offers a range of cloud services, which include:

  • Computer power 
  • Storage options 
  • Networking capabilities
  • Database 
  • Machine learning 
  • Analytics 
  • And much more

Key Strategies and tools for optimizing costs on AWS

Using a combination of the below strategies and tools can contribute to effective cost optimisation on AWS. Meaning this allows users to maximise the value of user’s cloud investments.

Strategies and Tools Understanding
AWS Pricing Using the pricing calculator allows users to estimate their monthly bill based on usage patterns and resource configurations. Which helps users understand their cost implications of the different configurations and services.
AWS Budgets With AWS Budgets it allows users to set custom costs and usage budgets that will alert users when they exceed their threshold. This will help with proactive cost monitoring and control. 
Reserved Instance (RIs)Reserved Instances allows users to commit to 1 year or 3-year term in exchange for a significant cost savings compared to the on-demand pricing. Meaning they are ideal for predictable and stable workloads. 
Spot InstancesSpot Instances allows users to bid for unused EC2 (Elastic Compute Cloud – allows users to rent virtual serves) capacity at a lower price. This can be a cost-effective option for users’ workloads that can tolerate interruptions and use flexible start and end times.
Auto Scaling Auto Scaling allows users to automatically adjust the number of EC2 instances in a group-based demand. It ensures users have the right number of resources at any time, avoiding over-provisioning and unnecessary. 
AWS Cost ExplorerCost Explorer provides a comprehensive set of tools for understanding, visualising and managing users AWS usage and costs over time. It aids users to identify trends, analyse costs and make informed decisions. 
Right-sizing Instances Using AWS tools like trusted advisor to identify instances that are underutilised or over-provisioned. Right-sizing involves selecting the size of instances and right type based on the true resource requirements.
TaggingUsers need to correctly tag their AWS resources allows users to allocate costs to specific departments, teams or projects. This allows it easier identify areas where users’ costs can be optimised.
Savings Plans The Savings Plans provides user significant savings over on-demand pricing, in exchange for commitment of consistent amount of usage for a 1- or 3-year period. 
Monitoring and Alerts Setting up AWS CloudWatch alarms allows users to receive notifications when the usage and costs exceed the predefined thresholds. This will help to quickly identify and address potential cost issues. 

Key Advantages

Optimising Costs on AWS can provide many benefits for individuals, businesses and organisations. 

  • Cost Savings 
  • Improved Budget Management 
  • Increased ROI 
  • Scalability and Flexibility 
  • Resources Efficiency 
  • Strategic Resource Allocation 
  • Enhanced Cloud Governance 
  • Competitive Advantages
  • Increased Cloud Adoption 
  • Continuous Improvement 

Here at Next2IT

Here at Next2IT we focus on the cost and security management, we align to your budget achieving long term goals while ensuring your cloud environment is performing to the highest standard and running efficiently. Check out our AWS  Page to learn how we can help you. 

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