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AWS Cost optimisation

The document outlines various strategies for optimizing costs on AWS, including right-sizing resources, using Spot Instances, and leveraging Reserved Instances and Savings Plans. It emphasizes the importance of monitoring and analyzing costs, optimizing storage, and utilizing serverless options to minimize expenses. Additionally, it provides a sample cost optimization plan to help users implement these strategies effectively.

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Raj Mohan Mariappan
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5 views5 pages

AWS Cost optimisation

The document outlines various strategies for optimizing costs on AWS, including right-sizing resources, using Spot Instances, and leveraging Reserved Instances and Savings Plans. It emphasizes the importance of monitoring and analyzing costs, optimizing storage, and utilizing serverless options to minimize expenses. Additionally, it provides a sample cost optimization plan to help users implement these strategies effectively.

Uploaded by

Raj Mohan Mariappan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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AWS Cost optimisation

Cost optimization on AWS is crucial to ensure you're getting the most value out of your
cloud resources while minimizing unnecessary expenses. Below are strategies and
best practices for optimizing costs on AWS:

1. Right-Sizing Resources

 Analyze Usage: Use AWS Cost Explorer and AWS Trusted Advisor to identify
underutilized resources.

 Resize Instances: Downgrade over-provisioned instances (e.g., switch


from m5.2xlarge to m5.xlarge if CPU and memory usage are low).

 Use Elastic GPUs: For instances requiring GPU, use elastic GPUs instead of full
GPU instances.

2. Use Spot Instances

 Spot Instances: Use Spot Instances for fault-tolerant or flexible workloads (e.g.,
batch processing, CI/CD pipelines). They can save up to 90% compared to On-
Demand pricing.

 Spot Fleet: Combine Spot Instances with On-Demand instances for cost-effective
scaling.

3. Leverage Reserved Instances (RIs) and Savings Plans

 Reserved Instances: Commit to 1-year or 3-year terms for predictable workloads


to save up to 75% compared to On-Demand pricing.

 Savings Plans: Flexible pricing model that offers savings (up to 72%) in exchange
for a commitment to consistent usage (measured in $/hour).

4. Optimize Storage

 S3 Storage Classes: Use the appropriate S3 storage class based on access


patterns:

o S3 Standard: Frequently accessed data.

o S3 Intelligent-Tiering: Automatically moves data between access tiers.

o S3 Glacier/Glacier Deep Archive: For archival data with rare access.

 EBS Volume Types: Use gp3 instead of gp2 for cost savings and adjustable
performance.
 Delete Unused Resources: Regularly clean up unused EBS volumes, snapshots,
and AMIs.

5. Auto Scaling

 EC2 Auto Scaling: Automatically adjust the number of instances based on


demand to avoid over-provisioning.

 Application Auto Scaling: Scale other resources like DynamoDB tables or Aurora
replicas.

6. Use Serverless Options

 AWS Lambda: Pay only for the compute time you use (no idle costs).

 Fargate: Serverless compute for containers (ECS/EKS) to avoid managing EC2


instances.

 Aurora Serverless: Automatically scales database capacity based on demand.

7. Monitor and Analyze Costs

 AWS Cost Explorer: Visualize and analyze your AWS spending over time.

 AWS Budgets: Set custom budgets and receive alerts when costs exceed
thresholds.

 AWS Cost Anomaly Detection: Identify unusual spending patterns.

8. Optimize Data Transfer Costs

 Use AWS Global Accelerator: Reduce latency and improve performance for
global applications.

 CloudFront: Cache content at edge locations to reduce data transfer costs.

 VPC Endpoints: Avoid data transfer costs between AWS services by using VPC
endpoints.

9. Database Optimization

 RDS Reserved Instances: Commit to RIs for databases with predictable usage.

 Aurora Serverless: Automatically scales database capacity based on demand.

 DynamoDB On-Demand: Use on-demand capacity for unpredictable workloads.


 Delete Unused Databases: Regularly clean up unused RDS instances or
DynamoDB tables.
10. Use AWS Free Tier

 Take advantage of the AWS Free Tier for new accounts, which includes free usage
of EC2, S3, Lambda, and other services for 12 months.

11. Tagging and Resource Organization

 Tag Resources: Use tags to track costs by department, project, or environment.

 Cost Allocation Tags: Enable cost allocation tags in AWS Billing to categorize
costs.

12. Shut Down Unused Resources

 Stop Idle Instances: Use AWS Instance Scheduler to stop non-production


instances during off-hours.

 Delete Unused Resources: Regularly clean up unused Elastic IPs, unattached


EBS volumes, and old snapshots.

13. Use AWS Compute Optimizer

 Compute Optimizer: Provides recommendations for optimizing EC2 instances,


EBS volumes, and Lambda functions based on usage patterns.

14. Optimize Licensing Costs

 Bring Your Own License (BYOL): Use existing licenses for software like Windows
Server or SQL Server.

 AWS License Manager: Track and manage software licenses to avoid over-
provisioning.

15. Use AWS Graviton Instances

 Graviton2/Graviton3: ARM-based instances that offer better price-performance


for compatible workloads (e.g., web servers, containerized applications).

16. Regularly Review and Update Architecture

 Modernize Applications: Use containers (ECS/EKS) or serverless (Lambda) to


reduce infrastructure costs.

 Multi-AZ vs. Single-AZ: Use Single-AZ for non-critical workloads to save costs.
17. Use Third-Party Tools

 CloudHealth by VMware: Provides advanced cost management and optimization


insights.

 Spot.io: Helps manage Spot Instances and optimize costs.

 Datadog/New Relic: Monitor resource usage and identify optimization


opportunities.

Example Cost Optimization Plan

1. Analyze: Use AWS Cost Explorer to identify high-cost services.

2. Resize: Downgrade over-provisioned EC2 instances.

3. Commit: Purchase Reserved Instances or Savings Plans for predictable workloads.

4. Optimize Storage: Move infrequently accessed S3 data to Glacier.

5. Automate: Set up Auto Scaling and stop non-production instances during off-
hours.

By implementing these strategies, you can significantly reduce your AWS costs while
maintaining performance and reliability. Let me know if you'd like a detailed cost
optimization plan for your specific use case!

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