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How to optimize AWS Costs

AWS costs

Keeping an eye on costs is a crucial part of running a business or organization. The same is true for AWS. And just like any business, you must keep an eye on costs! In this post, we’ll explore how to optimize your AWS costs.

Investigate the three Rs: Reduce, Resize, and Recycle

You must look at the three Rs: Reduce, Resize, and Recycle, to minimize AWS expenditures.

  • Reduce: Cut back on the amount of EC2 instances and S3 buckets you are using. This can be achieved by either choosing instances with more vCPUs and memory than necessary or condensing your applications onto fewer instances.
  • Resize: Use Auto Scaling Groups for EC2 instances and CloudWatch alarms for EBS volumes that are running low on space to resize your resources to match your workloads and demands.
  • Recycle: Recycle unwanted resources to prevent fees from accruing if they are left idle or abandoned (for example, removing old snapshots).

Eliminate unused resources

You can de-provision a resource once you’ve finished utilizing it. In addition to saving money, doing this will increase your productivity by allowing resources to be employed elsewhere.

Stopping or terminating instances, deleting unused volumes, and deleting snapshots are all part of de-provisioning.

Turn off non-production instances

A simple method to lower your AWS costs is to turn off non-production instances. If you have hundreds of instances, you can disable them using the AWS console, however, this doesn’t scale well. It is preferable to use Amazon EC2 Auto Scaling with policies configured to automatically terminate instances after a predetermined amount of inactivity (say 30 days).

Schedule workloads and stop/start non-production instances on a regular schedule

  • Schedule workloads and stop/start non-production instances on a regular schedule.
  • Automatically stop instances when they are not needed, and automatically start them when they are needed.
  • Use AWS Auto Scaling to do this for you, and monitor your environment with AWS CloudWatch.

Use Auto Scaling groups to grow and shrink your non-production environments, based on utilization levels

One way to optimize AWS costs is through the use of Auto Scaling Groups. When you set up an Auto Scaling Group, you can specify how many instances it should have and what triggers it should use to scale in or out.

  • If you set up an Auto Scaling Group with a minimum number of instances, then when those instances reach 50% utilization they will automatically be scaled up by one instance. The maximum number of instances will be reached when all your servers are at 100% utilization.
  • You can also set thresholds for scaling based on load (or CPU) utilization—for example, if your system is getting overloaded during peak hours and starts spiking above 80%, then the Auto Scaling Group will automatically add more capacity until things settle down again.

Consider instance types when choosing new instances

Your workload is the most crucial consideration when selecting an instance type. You should think about how many instances you’ll need (the more instances, the more cost-effective it will be), as well as how many cores your application will need to function properly.

Each of the several instance types that AWS offers has advantages and disadvantages of its own. They are typically designed for particular tasks, such as general purpose (m1 or c3), memory-optimized (r4 or x1), CPU-optimized (d2), and GPU optimized, but they change frequently dependent on client demand and shifts in market conditions (p2).

  • Right size your resources by finding the right balance of CPU, RAM, storage, and networking capacity for your applications

  • When you’re trying to optimize your AWS costs, you want to make sure that you’re right-sizing your resources. To do this, start by finding the right balance of CPU, RAM, storage, and networking capacity for your applications.
  • CPU and RAM are the most expensive resources on AWS. CPU is important for running CPU-intensive applications such as machine learning models or software build automation tasks — but it’s also necessary if you have lots of idle instances sitting in a high availability zone waiting for clients to connect with them through load balancing services like Elastic Load Balancing (ELB).
  • RAM is important for running memory-intensive applications such as databases and caches — but if your application doesn’t need much memory then it can be cheaper overall just rent more CPUs instead!

Storage is also an important factor when optimizing costs because storing data on traditional hard drives requires spinning up physical servers which are very expensive in comparison – especially when considering how fast prices drop off after the initial purchase price! So try not keeping too much data around unless necessary; this could save money over long-term use cases where an instance might no longer need its dedicated HDD due to constant activity levels.”

Use AWS Trusted Advisor 

Trusted Advisor is a performance metric tool offered by AWS. A trusted Advisor inspects your environment and makes recommendations when opportunities for improvement are found. You can run Trusted Advisor on an on-demand basis, or schedule it to run periodically.

Just like in any business – you must keep an eye on costs!

Cost is one of the top issues for companies using AWS. AWS is one of the most affordable cloud service providers, it should be noted. It makes sense to spend time learning about the various tools available to help you manage your costs and how they can help you lower costs within your infrastructure.

AWS Trusted Advisor, an Amazon Web Services performance metric tool, would be a great place to start (AWS). This tool aids in the performance analysis of your environments. And makes recommendations in light of the results. It offers data on current service levels and recommendations for how to raise them through doable actions like moving instances or changing parameters inside EC2 instances, among other things.

You can use cloud cost management tools to monitor your cloud costs and reduce your AWS bill. These tools can help you understand the resources utilization and based on it you can make decisions on how you can reduce your cloud expenditure.


AWS costs can be a real headache, but by following these tips and tricks you can save yourself some money. 

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