How to Optimize the Cost of AWS Resources

AWS is one of the most broadly used cloud computing environments in business, known for its flexibility, security, and scalability options. However, while the benefits of cloud computing are rarely doubted, many organizations face the dilemma of whether they are overpaying for their AWS resources. The truth is businesses that don’t make use of AWS managed services are likely to make common mistakes in the process of cloud implementation, leading to solutions that are not as cost-effective as they could be. Here are some tips on how to optimize your AWS resources’ costs. 

Choosing the right pricing models

First and foremost, AWS has a number of different pricing models, each suitable for different business needs. Reviewing your pricing models and deciding whether those are the optimal choices for you is a great place to start in cutting cloud-related costs. 

For instance, if the need for certain resources tends to fluctuate a lot in your business, you want your cloud computing resources to offer as much elasticity as possible. The flexible AWS pricing model saves you money by allowing you to only pay for resources that you have used in a particular time period. This means that you can have accessibility to certain resources only when needed. 

Reserved instances (RI) is another cost-saving option that can be utilized, particularly in businesses with a relatively stable workload. RI is an ability to pay for certain resources within your cloud infrastructure in advance for 1 or more years, in exchange for which AWS offers substantial discounts (up to 75% in some cases). Of course, a lot of planning and forecasting will be needed to ensure that you have the right amount of resources available in the future.

Right-sizing your resources

Ideally, your business will be paying for the smallest and cheapest instance possible to meet only the required amount of storage, functionality, applications, and other resources. It’s not that simple in practice, however, as you also have to leave room for future growth, unexpected demand change for resources, or other similar reasons. Nonetheless, downsizing your resources when they are not in demand is key in cutting a significant amount of costs. 

One of the ways organizations tackle this challenge is by utilizing autoscaling. Autoscaling technology allows for an automated upsizing or downsizing of additional resources based on a variety of performance metrics of different applications. This feature doesn’t only optimize costs by using data-driven decisions but also saves you valuable time not doing this job manually. 

Monitoring resource utilization

AWS cost optimization of resources is an ongoing process, given that your business needs change over time. Therefore, continuous monitoring of your cloud resource optimization is essential in order to make informed decisions for cost budgeting in addition to helping you understand what your cloud computing requirements may look like in the future. 

There are certain processes you can implement to monitor the utilization of your resources, helping you identify which of them have a high amount of workload and which are under-utilized. By doing this regularly, you will always be able to identify resource waste and get rid of it, eventually cutting costs. 

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