AWS Cost Optimization Strategies
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Provision only necessary resources
Monitor and shut down unused instances
Use CloudWatch for utilization monitoring
Combine similar resources for better efficiency
Example: Consolidating DynamoDB databases
Multiple small databases have minimum provisioning requirements
Consolidation enables better utilization of read/write capacity units
Case study: Database consolidation
Original: Four db.t2.small multi-AZ databases at $287.80
Consolidated: Single larger database for cost savings
Use lowest-cost resources meeting technical requirements
Design for consistent resource utilization
Implement loosely coupled architectures
Smooths demand patterns
Reduces spikes and valleys
Creates predictable demand profiles
Reserved Instances
Best for permanent applications
Significant cost savings for long-term use
Spot Instances
Ideal for temporary horizontal scaling
Maximum cost savings (up to 79% off on-demand)
EC2 Fleet
Defines target mix of instance types
Combines On-Demand, Reserved, and Spot instances
On-demand price: $0.38
1-year reserve: 40% savings
Spot instance: 79% savings
Prices vary by region
Lower-cost regions for non-location-specific services
Use CloudFront and Route 53 for latency management
us-west-2: Lowest cost per gigabyte
Costs increase in other regions
Reduced administrative overhead
Lower total cost of ownership
Decreased complexity
RDS instead of EC2 for MySQL
Redshift
Fargate
MapReduce (EMR)
Inbound data transfer: Free
Outbound and inter-region transfer: Charged
Significant impact on total costs
Higher upfront costs
Potentially more cost-effective long-term
Depends on:
Data volume requirements
Speed requirements
Transfer patterns
Regular resource utilization review
Proactive monitoring and adjustment
Balance between performance and cost
Consider long-term vs. short-term needs
Evaluate managed service opportunities
