The AWS cloud supports millions of businesses globally with a whopping share of 33% of the cloud market. This means that a huge chunk of many business budgets goes towards this platform. AWS does give you a pay-as-you-go model to scale down costs when resources aren’t in use. Although this is a cost-effective solution, there are a lot of other AWS cost optimization techniques that a surprising number of companies still don’t know. Even small changes can lead to noticeable savings. This blog is a go-to guide, packed with strategies and tips to help you lower your AWS expenses and show you how to optimize your spending effectively.
Factors That Lead to Unplanned Spending in AWS Architecture
Before moving onto cost-lowering strategies, we need to know what are the factors that lead to high spending in the first place. There are a few reasons behind this. Some companies don’t have the expertise to manage cloud costs, while others fail to use proper optimization techniques. Before wondering ‘why is AWS expensive’, check the following reasons to see if you are making any of these mistakes:
- Paying for extra resources: Businesses often choose larger or more powerful computing resources than necessary. The extra capacity does not often get used to its full potential but guess what? You are still paying for it! Right-sizing resources to match actual workloads can significantly help you reduce AWS cloud costs.
- Idle or underutilized resources: Many organizations fail to turn off or scale down their resources when they are no longer needed. This leads to costs from idle resources.
- Unmonitored storage costs: AWS offers various storage options, but you could still be paying unnecessary charges if you cannot track your storage. This means properly cleaning up unused data which is leading to higher bills.
- Data transfer costs: Data transfer between AWS services or regions can generate unforeseen costs. If you don’t understand the flow of data and optimize these transfers, you could potentially generate a huge bill.
- Misconfigured auto-scaling: Auto-scaling is meant to optimize costs by dynamically adjusting resources to meet demand. However, incorrect configuration (like setting thresholds too low or too high) can lead to unnecessary scaling events.
- Lack of monitoring and alerts: Without proper monitoring and alert systems in place, cost spikes will go unnoticed until the bill arrives. Leveraging AWS tools like CloudWatch and setting up budget alerts can help businesses track and reduce AWS cloud costs more proactively.
AWS Cost Optimization Strategies for Cloud Architects
No matter the mistake you were making all this while, these are totally avoidable. Optimizing AWS cloud costs takes a hands-on approach and can be easily achieved through proven strategies. Here are the most effective cost-lowering strategies if you are an AWS cloud architect:
- Manage Cloud Finances Actively
AWS offers a tool called Cost Explorer to help you track your spending. Using this, you can easily find areas where you are overspending and identify resources that are costing the most. The first step to optimizing your AWS spending is to review your top cost drivers. Once you identify these, you can make a plan to reduce them one by one.
Setting a budget goal and alerts with spending limits is another useful way to manage costs. This will help you monitor your expenses thoroughly and quickly respond to any unexpected spikes before they get out of control.
If you are looking to upgrade your team’s AWS efficiency, it is best to provide targeted training from EducationNest, a leader in corporate training. Their expertise ensures you maximize your investment, streamline operations, and achieve peak performance in your cloud environment.
- Use Cost-Allocation Tags
Many businesses overlook Cost Allocation Tags in AWS, but they can make a big difference. These tags let you label your resources, from servers, and storage to functions, and organize your cost reports based on those tags.
Using tags is one of the best cost optimization techniques in AWS. With tags, you can track which services or departments are using the most resources. This will help manage your costs more accurately. You can easily find underused or oversized resources and make adjustments to save more money.
- Select Cost-Effective Resources
Picking the right resources for your needs is key. Your resources should fit your business without being too over-the-top than you actually require. Overprovisioning means you are paying for power you don’t need. Proper resource planning can lead to significant savings. This is a commonly overlooked AWS cost optimization technique.
If you don’t have a team with AWS expertise, it is time to invest in good AWS solutions architect training to build a team for your company. You will benefit a lot if you consistently face problems managing your costs and find a fine balance between performance and cost.
- Auto Scaling
Auto Scaling is a great cost-saving feature that automatically adjusts the number of resources based on demand. This way, you avoid paying for extra capacity when it is not needed. Instead of manually scaling resources up or down, Auto Scaling takes care of it for you, ensuring no overprovisioning or waste.
- Manage Resource Usage Based on Demand
If your application experiences low traffic during specific times, you can schedule shutdowns to save costs during those periods. Tools like AWS EventBridge and Amazon Scheduler can automatically shut down unused resources during weekends or non-business hours. This is a great cost optimization strategy for AWS.
On the other hand, reserving resources is also a great way to save as these often have discounts of up to 75%. If you know you will need certain resources for a long time (like 1-3 years), locking in reserved resources gives you predictable costs.
- Optimize AWS Storage Costs
Storing data efficiently can also lead to savings. If you have data that is rarely accessed, consider moving them into cheaper storage tiers (like S3 Glacier or S3 Intelligent-Tiering). This process can even be automated by setting rules that move old data to cheaper storage after a certain period of inactivity.
For long-term storage, the S3 Glacier Deep Archive is a good option. It automatically manages your data lifecycle, ensuring that rarely accessed files are stored in the cheapest tier without any manual work on your end. This is a simple cost-saving strategy in AWS that is often overlooked by businesses.
Conclusion
We trust that these techniques will help you get a handle on managing AWS costs effectively. But it’s important to remember that cloud cost optimization is not a one-time thing. It requires ongoing effort, close monitoring, and strategic adjustments as your business grows and changes. That said, the real key to unlocking long-term savings lies in having the right expertise in your company. An AWS Solutions Architect training program equips your team with the necessary skills to not only design efficient cloud architectures but also implement cost-saving strategies from the ground up.
Knowledge is your most powerful tool when it comes to running a lean, efficient AWS environment. It is a wise move to invest in such training from an experienced corporate training provider with a proven track record like EducationNest to maximize the value of every dollar spent.
