_ AWS

AWS Cost Optimization

Optimizing costs on AWS is important for maximizing your cloud ROI. By reducing your AWS spending, you can allocate more resources to innovation and growth initiatives, improve your bottom line, and stay competitive in today’s fast-paced business environment. Plus, by adopting cost optimization best practices, you can ensure that you’re getting the most value from your AWS resources and avoiding unnecessary waste.

How to Optimize AWS Costs

Use reserved instances
By committing to a one or three-year term, you can receive significant discounts on your EC2 instances compared to On-Demand pricing. Reserved instances work best for steady-state workloads that are expected to run continuously for long periods.
Utilize auto scaling
This feature automatically adjusts the number of EC2 instances in response to changes in demand. By dynamically adding or removing instances, you can ensure that you only pay for the capacity you need at any given time.
Set up cost allocation tags
By tagging your AWS resources with metadata that specifies which team, project, or application they belong to, you can more easily allocate costs and identify areas for optimization. You can use the AWS cost explorer tool to view your spending by tag.
Use spot instances for non-critical workloads
Spot instances allow you to bid on spare EC2 capacity at a discount. This can be an effective way to reduce costs for workloads that can tolerate interruptions or that can be rescheduled if the spot price rises.
Use the AWS cost explorer tool
This tool provides a range of reports and visualizations that can help you understand your AWS spending and identify opportunities for cost reduction. You can use it to explore your costs by service, region, usage type, and more.