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Your Guide to AWS Cost Optimization
Your Guide to AWS Cost Optimization

March 26, 2025

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The cloud is a powerful tool, but keeping those workloads running can get expensive fast, especially if you do not have Cost Management and Optimization expertise. Don’t worry, you’re not alone! This guide will equip you with the top strategies to slash your AWS bill and keep your cloud finances healthy.

Finding the Perfect Fit: Rightsizing Your EC2 Instances

Imagine renting a mansion when a studio apartment would do. That’s what oversized EC2 instances are like. AWS offers smart tools like AWS Compute Optimizer to analyze your workload and recommend the perfect instance size, saving you from paying extra for unused muscle.

Cleaning Up Your Digital Garage: Optimizing EBS

Think of EBS volumes as your cloud storage lockers. Unused or unattached ones are like leaving dusty boxes in your garage – a waste of space (and money). By optimizing EBS throughput and detaching unused volumes, you’ll free up resources and avoid unnecessary charges.

Supercharge Your Savings with Spot Instances

Spot instances are like unsold concert tickets – amazing deals, but they might disappear suddenly. Perfect for non-critical tasks or batch jobs, Spot instances can offer huge savings (up to 90%!) compared to regular instances. Just be prepared for potential interruptions, so need good analysis before jumping into it!

Store Smarter, Pay Less: S3 Intelligent Tiering to the Rescue

Amazon S3 storage has different tiers based on how often you access your data. With S3 Intelligent Tiering, your data automatically migrates between tiers, placing frequently used files closer for faster access, while archiving less used ones in a more cost-effective tier. Savings of up to 40% compared to standard storage?

Became a Cloud Sherlock with CloudWatch – but what about CloudWatch cost

CloudWatch is your cloud detective, keeping a watchful eye on your AWS usage. It gathers data and insights, helping you identify areas for cost optimization. Don’t forget to clean up your CloudWatch log groups regularly for additional savings, you can lower your retention period to maximise savings.

Optimize Your Database Powerhouse: Fine-Tuning RDS and OpenSearch

Just like your car runs best with the right engine size, your database (RDS) and search engine (OpenSearch) instances perform optimally at specific configurations. By fine-tuning them, you ensure you’re not paying for more power than you actually need.

Commitment Leads to Savings: Embrace AWS Savings Plans

By committing to a certain usage level for a specific period, you get significant discounts (up to 72%) on your AWS bill. It’s a win-win – guaranteed savings for you, predictable usage for AWS.

Bonus Tips: Unlocking Hidden Savings

There’s more to the cost-saving story! Explore Reserved Instances, Compute Savings Plans, EC2 Scheduler for automated instance management, cleaning up stopped EC2s, and using Session Manager for secure access instead of Bastion Hosts.


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