20 Tools to Tap into Cost Savings on AWS
Since the beginning of cloud computing, Amazon Web Services (AWS) has been at the forefront, offering an abundance of services for use cases that provide first-class, smooth flying in the cloud. Cost savings on AWS will enable you to free up time and money that can be focused on growing your core business.
This article is for both AWS beginners and adepts eager for the best tools for managing and monitoring resources in a cost-conscious manner. We make it easy for you by breaking down each opportunity into 9 use cases, so you can scrutinize every facet of your bill.
Table of Contents
Cost savings on AWS
Companies transitioning to a cloud-based infrastructure receive immediate benefits from services on-demand. You are no longer burdened by investing in expensive hardware and software; AWS offers a spectrum of possibilities, with pay-as-you-go pricing that allows you to experiment before committing.
There are two types of tags; AWS generated, and user-defined. Each tag contains a unique key and a value, attached to the services of your choice to track costs on AWS efficiently.
After the tags are activated, AWS organizes them into a detailed report; helping you automate, and consequently save time and money.
Users can access this feature through the AWS Cost Management product suite, grouping events into specific categories. You can configure your categories to track results from tags, services, charge types, and even other cost categories.
The information is trackable in AWS Cost Explorer, AWS Budgets, and AWS Cost and Usage Report (CUR) at the beginning of each month.
Obtain up-to-date and detailed information regarding your spend and usage on AWS. Categorize your reports to record utilization by hour, day, or month to help you identify areas for optimization.
With a comprehensive overview of usage, individuals can quickly identify opportunities to boost their AWS implementation. Users can also upload their data directly into Amazon QuickSight and Amazon Redshift for total transparency.
With AWS Consolidated Billing, you can track invoices and payments across your entire organization in a unified view. People can merge usage across accounts and share discounts such as those associated with Reserved Instances and Savings Plans.
To top it off, Consolidated Billing is offered with no additional fees, helping accelerate your cost savings on AWS journey.
AWS Purchase Order Management is a simple, self-serve interface for managing your purchase orders (POs). Users can centralize management for their POs and reduce any overhead involved in matching invoices with POs while dialling in on accuracy and efficiency in procure-to-pay processes.
Establish a primary contact to receive notifications for verifying incoming POs and orders that are close to expiration so that you can avoid delays.
AWS Credits are used to cover costs on your bill for various services and are employed until the credits are exhausted or expired. There are various ways to acquire credits, such as the following:
With AWS Activate, users can build and scale up to $100,000 in Activate credits, giving your business the lead, and covering some of the startup costs.
Publish an Alexa Skill
Developers looking for increased cash flow can publish an Alexa skill and apply for $100 in credits. Users can do this as many times as they want, although getting approved isn’t always guaranteed.
Attend a Webinar
AWS gives users the ability to obtain credits for attending events and webinars. Simply provide Amazon with proof of your participation and receive the specified amount of credits.
Amazon is passionate about educating the next generation of cloud cruisers; therefore, they incentivize users with credits of up to $200 per skill learned through AWS Educate.
AWS IAM is ideal for people outsourcing their development because you can manage access to individual services securely with it. Permissions can be done on a singular or group level with flexible conditions, such as the time of day, IP address, whether they’re using SSL, and many more.
Having firm control over your resources can ensure that no unforeseen expenses emerge from prohibited regions. Amazon IAM is a complementary feature included with your AWS account.
AWS Cost Anomaly Detection exposes random charges and reduces the risk of surprise hits on your billing statements. Once configured, you can set up daily or weekly reports delivered via SMS of Email for on-the-go alerts right when you need them.
AWS Budgets enables you to specify custom budgets to track your cost and usage of AWS services. You can choose to be alerted via text message or email when capacities have exceeded your predetermined thresholds.
For users just beginning their journey on AWS, there is the option to leverage a Free Tier for the free use of specified services. This should be the first option for people just beginning and will give them a jump start with cost savings on AWS.
Amazon EC2 and Amazon RDS enable users to invest in reserved capacity; saving you up to 75% over equivalent on-demand capacity. Users have three options for their instances – all up-front, partial up-front, or no upfront payments.
Discounts are determined based on the upfront payment total. If a user decides to put more money down, they can benefit from greater deals.
AWS Savings Plans allow users significant savings, up to 72% for AWS EC2, AWS Fargate, and AWS Lambda usage. This plan requires users to choose a 1 or 3 year term with a specified amount of compute power, which is measured in $/hour.
Amazon Spot Instances allow you to take advantage of dormant EC2 capacity in the cloud. Compared to On-Demand prices, Spot Instances can save you up to 90% and can still be integrated with On-Demand tools to augment workload cost accordingly.
Spot Instances can quickly shift to hibernation mode with just a 2 minute notice when EC2 reclaims the capacity.
When you begin with DynamoDB, you are presented with two pricing models, on-demand and provisioned.
With on-demand capacity mode, you’re charged for the data reads and writes your application performs on your tables. On-demand might be the best decision for you if the following apply:
- Have volatile application traffic
- Create new tables with unknown workloads
- Prefer to only pay for what you use
Amazon Instance Scheduler is an innovative stop watch for your EC2 and RDS instances, allowing users to configure procedure start and stop times. You can seamlessly control the throttle on resources to save money when capacity is not needed.
Studies show that organizations who run their capacity at full throttle during all hours are likely to spend up to 70% more than those with specified parameters.
Amazon EC2 Scaling allows you to routinely add and remove instances according to your defined conditions with the dynamic and predictive scaling features. You can leverage the fleet management features in EC2 Auto Scaling to maintain a highly-functioning scope of instances.
In harmony, dynamic and predictive scaling can help you scale faster, stronger, and cheaper than operating in solitary.
AWS Trusted Advisor is an online resource providing users with on-the-spot guidance to help provision resources with AWS best practices. Trusted Advisor examines your environment and offers advice for scaling your infrastructure with enhanced security and performance, cost saving opportunities, and service limit assessments.
Over-provisioning resources leads to needless costs, while under-provisioning can result in poor execution. Amazon Compute Optimizer leverages machine learning to examine historical utilization metrics in your workloads and recommends opportunities to prioritize cost outlays and improve performance.
Amazon S3 Intelligent Tiering offers 3 classes designed to help you get the most out of your S3 buckets with affordable yet attainable storage. Intelligent Tiering automatically moves objects between four access tiers as soon as it detects a pattern shift.
AWS Cost Explorer offers an intuitive dashboard for visualizing, understanding, and managing your costs. Users can forecast future costs by identifying trends, pinpoint cost drivers and detect anomalies.
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