AWS offer the flexibility to effectively manage costs and keep the performance and capacity business requirements with its wide range of services and pricing options. Understanding the right size of your services, leverage Reserved Instances, and use of impactful cost management tools to monitor costs, can be done with AWS services.

AWS costs can be minimized by simply following some effective steps: 1) Right-size your services to meet capacity needs at the lowest possible cost 2)  Reserve and save money 3) Use the spot instances 4) Monitor and track service usage 5) Use of Cost Explorer to optimize savings.

Right size your services

The right sizing of your business which exactly meets the capacity requirement at any time can be gained with AWS services. With AWS you can choose services that meet your existing business needs however as your demands change, you can easily shift to the services option that meets your new requirements and needs. With AWS you can also run multiple service options simultaneously which might help reduce costs and maintain optimal performance. This clearly means save of money by adapting your services to meet your business requirements.

Reserve and save

Amazon’s Reserved Instances are available in options like – All up-front (AURI), partial up-front (PURI) or no upfront payments (NURI).

When you buy Reserved Instances, the greater the discount will be the discount if lager up front is bought. To maximize savings, paying all up-front gives the largest discount. Partial up-front reserved instances offer lower discounts but give the option to spend less up front. And lastly you can choose to spend nothing up front and get a smaller discount, which will allow you to free up capital to spend in other projects.

Using reserved instances, can lead to risks minimization, predictable and managed budgets, and comply with policies that require longer-term commitments for an organization.

Use of spot instances

An Amazon EC2 Spot instance allows bidding on spare Amazon EC2 computing capacity applications.AWS allows scaling of services for short-term usage and helping reduce your bill. Since Spot Instances are usually available at a discount compared to on-demand pricing, you can significantly reduce the cost of running your applications and thereby lower your operating cost.

Monitor, track and analyze service usage

Amazon CloudWatch is used to gather and track metrics. It can also be used to manage log files and automatically react to changes in AWS resources. Amazon CloudWatch can also be used to gain visibility into resource usage, application performance, and operational health.

With Trusted Advisor you can provide your resources follow the best practices to improve system implementation and reliability, increase security, and look for options to save money.

Analyze cost and usage

AWS Cost Explorer gives the ability to analyze costs as per usage. AWS’s powerful cost management feature available in Cost Explorer is to filter and group Cost Explorer data according to resource tags. Tagging gives the ability to create resource groups that match business structures, making it easier to map resources and workloads to the appropriate cost center.

TCO calculator

The AWS TCO calculator provides the option to assess the savings from using AWS and comparing it against on premises and co-location environments. The TCO calculator matches current infrastructure to the most cost effective AWS offering. This tool takes into consideration all the costs to run a solution, including physical facilities, power and cooling, providing a realistic end-to-end comparison of your costs.

written by- Simpi Nath

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