AWS Cost Optimization Best Practices: Tips to Lower Your Cloud Costs

Lower your cloud costs with our guide to AWS cost optimization best practices. Learn how to monitor, analyze, and implement cost-saving strategies for maximum ROI.

AWS Cost Optimization Best Practices: Tips to Lower Your Cloud Costs

Some of the best techniques for AWS cost optimisation are undoubtedly well known to Amazon Web Services users, but not all of them. As a result, we have created a list of the top 10 AWS cost optimisation strategies as well as a suggestion on how to keep Amazon Web Services' prices as low as possible.

What's the root cause of increased cost? 

The pricing and usage of AWS Cloud resources are closely correlated. To manage and optimise expenses, businesses must rely on solid governance and user behaviour.

The primary causes of unnecessary spending on the AWS Cloud are as follows:

  • erroneously managed cloud resources: idle, underused, and overstocked.
  • Price complexity and expenditure prediction difficulty.
  • Around 200 fully featured services are available through AWS, and with many possibilities come many options.

List of AWS Cost Practices 

1. The EC2 instances' rightsizing

Let's start with all these three Amazon cost optimization best practises as element to achieve, scheduling, and Reserve Instances/Savings Plans have already been covered. To match example sizes to their workloads, rightsizing is used. Sadly, while instances double in capability for each changes in height, it doesn't quite work that way.

When you go up in level, your capacity doubles, and when you go downward one size, your capacity is cut in half. As a result, continuous variables are only a wise best practice in situations where peak utilisation is under 45%. Even so, it's still valuable to examine utilisation metrics to look for chances to transfer workloads to families other than "General Purpose" that are better suited to their requirements.

2. Planned on/off times

If you apply a "on" schedule of 8 a.m. to 8 p.m. Monday through Friday, you will save about 65% on running these instances. Non-production instances include those used for creating, staging, testing, and QA. Even more money can be saved, especially if software developers work sporadic schedules or odd hours.

The most frequent times that the instances are used can be used to apply more aggressive schedules, or you can employ an always-stopped schedule that can be disrupted when connectivity to the instances is needed. It's important to note that even while instances are set to be off, you will still be paid for any linked Ec2 instances and other components.

3. Buying Savings Plans and Reserved Instances 

A simple method to cut AWS expenses is by purchasing Reserved Instances. If you don't use the Restricted Example as much as you anticipated, buy the wrong kind of Reserved Instance, or buy a "standard" Reserved Example only to find that AWS prices fall over the course of your booking by more than the appointment "saves," it can also be a simple way to increase AWS costs.

We're going to recommend effective management of Reserved Cases as an AWS cost optimization best practice instead of suggesting that buying Reserved Instances is one of the best practises for reducing costs. Effective management entails weighing all the factors before making a purchase and then keeping track of utilisation throughout the reservation's lifecycle.

4. Removing detached EBS volumes

When you release a Server, an EBS volume is connected to the instance to serve as its local block storage. This brings us back to Elastic Block Storage (EBS). Only if the "delete on termination" box was checked when the EC2 instance was launched will the EBS volume be erased when the instance is terminated. The EBS amount still persists and is charged to the monthly AWS payment even if the box wasn't ticked5.

There may be hundreds of detached EBS volumes in your AWS Cloud, contingent upon how long your company has been using the fog and the instances that were launched without the remove box being ticked. Even if your company is relatively new to the AWS Cloud, it's unquestionably one of our top practices for AWS cost optimization to take into account.

5. Remove Outdated Photos

Since they only rear up information that has been altered in the last snapshot, snapshots are an effective way to backup data on an External storage device to an S3 storage bucket. This prevents duplicate data from being stored in the S3 bucket. As a result, each snapshot includes every piece of information required to restore your data to a new EBS disc (as of the time the snapshot was taken).

Although snapshots don't cost a lot independently, you might save a lot of money by erasing those you no longer need. In most cases, you'll only require the most recent screenshot to restore data if it goes wrong (although it's advised to keep screenshots for a couple of weeks based on how often they're taken).

Why optimise costs on AWS? 

The following are main advantages of cloud cost optimisation:

  1.  Save money - Spot instances can help you cut your EC2 costs by up to 90%, while Amazon Savings Plans can help you save up to 72%. By right-sizing workloads on AMD-based instances, you can save up to 10%, and by switching to AWS Graviton2-based instances, you can save up to 20%. 
  2. Improve agility - By releasing resources to scale apps cost-effectively through cost optimisation. Companies can finance more initiatives to better meet consumer neeeds or give existing apps more resources to boost performance if they have more resources.
  3. Simplify your decision process - By using AWS's suggestions based on billions of simulations to find the best instance type and compute environment size for you.


The process of implementing AWS cost optimization best practices is continuing. To detect under or non-utilization of assets and chances to cut expenses by terminating, destroying, or releasing zombie assets, your AWS Cloud must be constantly watched. Also, it's critical to monitor Reserved Instances to make sure they're being used to their full potential.

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