AWS Cost Optimization To-Do List
Tags: devops, aws, cost, job
Published: 2024-05-30 23:55:32


![Image description](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/75la6j91etsy4yd96l8m.jpeg)Managing AWS cost optimization can be more complicated than anticipated. While it might be more straightforward for companies "born" in the cloud, those that have "migrated" might face increased costs due to the complexity of managing, governing, and automating their on-premises infrastructures.

Many organizations are shifting to models such as platform as a service (PaaS), infrastructure as a service (IaaS), and software as a service (SaaS) for their applications and services. Consequently, understanding your cloud bill and budget with providers like AWS is becoming critical as a significant portion of IT budgets is now allocated to these services. In this article, we explore the key principles and practical methods for reducing cloud expenses.

**1. Identify Waste and Excessive Costs**

**Unused Instances:** Regularly check for and terminate underutilized Amazon EC2 instances.

**Idle Resources:** Identify and remove unused EBS volumes, snapshots, and load balancers.

**Optimize Instances:** Utilize Spot and Reserved Instances for cost savings of 50% to 90%.

**Savings Plans:** Implement Savings Plans to reduce compute costs by committing to a minimum AWS spend.

**Auto-scaling:** Ensure auto-scaling is implemented optimally to avoid over-provisioning resources.

**2. Follow AWS Design Guidelines for Cost Management**

**Assess and Assign Expenses:** Use AWS tools to attribute costs transparently to specific tasks or departments.

**Evaluate Overall Efficiency:** Measure business output relative to costs to find opportunities for cost reduction.

**Adopt Cloud Financial Management:** Invest in processes, resources, and tools to manage cloud finances effectively.

**Avoid Heavy Lifting:** Leverage AWS-managed services to reduce the operational burden.

**Implement a Consumption Model:** Pay only for the resources you need and turn off unused resources to save costs.

**3. Optimize Storage**

**Choose Appropriate Storage Tiers:** Select the right AWS storage options based on performance needs and costs.

**Automate Cost Allocation:** Use cost allocation tags and enforce their use to track expenses accurately.

**Regular Reviews:** Regularly review storage usage and performance to ensure optimal configuration.

**4. Properly Size Resources**
**Right-Size Instances:** Ensure compute resources match your workload requirements to avoid underutilization.

**Monitor Metrics:** Set up monitoring for key metrics to maintain visibility into resource utilization and costs.

**Set Goals and Review Data:** Define clear cost optimization goals and review data regularly to adjust as needed.

**5. Use the Appropriate Pricing Model**

**Select Suitable Pricing Plans:** Choose from spot instances, reserved instances, and on-demand pricing based on your workload demands.

**Match Resources to Needs:** Ensure reserved instances and savings plans are properly utilized for predictable workloads.

**6. Enhance Elasticity**

**Leverage Elasticity Features:** Use AWS’s elasticity to match resource usage with demand, turning off resources when not needed.

**Utilize AWS Cost Optimization Tools**

**1. Cost Explorer**
Visualize and analyze AWS cost and usage data to identify trends and spikes.

**2. AWS Instance Scheduler**
Automate the scheduling of EC2 and RDS instances to match usage patterns.

**3. Amazon CloudWatch**
Set alarms for resource utilization to detect underutilization or unexpected spikes, enabling proactive cost management.

**4. AWS Budgets**
Set up budgets for specific services or accounts and receive notifications when usage exceeds thresholds.

**5. Amazon Trusted Advisor**
Get recommendations on optimizing costs, improving security, and enhancing performance based on best practices.

**6. Cost and Usage Report Tool**
Generate detailed reports on AWS costs and usage to monitor and manage expenditures effectively.

**7. AWS CloudTrail**
Track and log API calls and account activities to identify unusual patterns that may indicate excessive costs.

Effective AWS cost optimization requires a multifaceted approach, involving regular monitoring, strategic use of AWS tools, and continual education and process improvement. By following these principles and best practices, businesses can significantly reduce their cloud expenses while maintaining performance and scalability.