How to save costs on your AWS spend
- December 23, 2022
- Posted by: Floris
- Category: Amazon
How to save costs on Amazon Web Services (AWS)
AWS services are organized into categories, including computing, storage and content delivery, databases, networking and content delivery, analytics, machine learning, security, and application services. Some popular AWS services include Amazon Elastic Compute Cloud (EC2), Amazon Simple Storage Service (S3), Amazon Relational Database Service (RDS), and Amazon Elastic Container Service (ECS).
AWS is a pay-as-you-go service, which means that you only pay for the resources that you use. You can choose from a range of pricing options, including on-demand instances, reserved instances, and savings plans, to meet your specific needs.
AWS is widely used by businesses of all sizes, from startups to large enterprises, and is known for its reliability, scalability, and security. It is also a popular choice for developers and IT professionals due to its wide range of services and tools, as well as its robust developer community and ecosystem.
Top 10 ways to optimise your AWS bills
There are a number of ways to optimize your use of Amazon Web Services (AWS) to ensure that you are using the platform efficiently and effectively. Here are some general tips for optimizing your AWS resources:
- 1. Identify underutilized resources: Regularly review your resource utilization to identify resources that are not being fully utilized. This can help you identify opportunities to scale down or decommission resources that are not being used effectively.
- 2. Use Amazon Elastic Compute Cloud (EC2) reserved instances: If you have a steady and predictable workload, consider purchasing EC2 reserved instances to save on computing costs.
- 3. Use auto-scaling: AWS provides tools such as Auto Scaling to automatically add or remove resources based on your workload. This can help you optimize resource usage and reduce costs.
- 4. Use Amazon Simple Queue Service (SQS) to decouple services: SQS can be used to decouple services, allowing you to scale each component independently and improve the overall resilience of your application.
- 5. Use Amazon CloudWatch to monitor resource usage: CloudWatch is a monitoring service that can help you track resource usage and identify potential optimization opportunities.
- 6. Use Amazon Elastic Container Service (ECS) or Kubernetes to manage containerized applications: ECS and Kubernetes can help you optimize the deployment and management of containerized applications on AWS.
- 7. Use Amazon CloudFront for content delivery: CloudFront is a content delivery network that can help you deliver static and dynamic content faster to users around the world.
- 8. Use Amazon S3 for storage: S3 is a scalable and cost-effective storage solution that can be used to store a variety of data types.
- 9. Use Amazon RDS for managed databases: RDS is a managed database service that can help you simplify the process of setting up, scaling, and maintaining databases.
- 10. Consider using AWS Lambda for serverless computing: Lambda is a serverless compute service that can help you run code in response to events and automatically scale to meet demand.
By following these tips, you can optimize your use of AWS and reduce your overall costs. It’s also a good idea to regularly review your usage and look for opportunities to optimize your resources.
6 Ways to increase your discount on AWS Cloud Services
Amazon Web Services offers several contracting options to help customers negotiate and purchase cloud services. Here are some common contracting options:
- 1. On-demand instances: With on-demand instances, you pay for compute capacity by the hour with no long-term commitments. This is a good option for customers with short-term, spiky, or unpredictable workloads.
- 2. Reserved instances: With reserved instances, you can make a one- or three-year commitment to a specific instance type and availability zone in exchange for a discounted hourly rate. This is a good option for customers with steady and predictable workloads.
- 3. Savings plans: Savings plans allow you to save up to 72% on your Amazon Elastic Compute Cloud (EC2) and Amazon Elastic Container Service (ECS) instances by committing to a consistent amount of usage over a one- or three-year period.
- 4. Spot instances: Spot instances allow you to bid on unused EC2 capacity and receive a discount compared to on-demand prices. This is a good option for customers with flexible workloads that can be interrupted.
- 5. Dedicated instances: Dedicated instances are physically isolated instances that are dedicated to a single customer. This is a good option for customers with compliance or regulatory requirements that require dedicated resources.
- 6. Dedicated hosts: Dedicated hosts are physical servers with EC2 instances running on them. This is a good option for customers with compliance or regulatory requirements that require dedicated hardware.
It’s important to evaluate your workload and determine the best contracting option for your needs. AWS provides tools and resources to help you compare pricing options and find the best fit for your business.
Key differences between AWS Reserved Instances and Saving Plans
Amazon Web Services offers two types of pricing discounts for Amazon Elastic Compute Cloud (EC2) and Amazon Elastic Container Service (ECS) instances: reserved instances and savings plans. Here are the key differences between the two:
- 1. Cost: Reserved instances generally have a higher upfront cost compared to savings plans. Savings plans have a lower upfront cost, but may have a higher hourly rate compared to reserved instances.
- 2. Commitment: Reserved instances require a one- or three-year commitment, while savings plans do not have a required commitment.
- 3. Flexibility: Reserved instances are tied to a specific instance type and availability zone, while savings plans are more flexible and can be applied to any instance type within a specified region.
- 4. Usage: Reserved instances are best suited for workloads with a steady and predictable usage pattern, while savings plans are more suitable for workloads with fluctuating usage.
It’s important to evaluate your workload and determine which pricing option is best for your needs. If you have a steady and predictable workload, reserved instances may be the better option. If your workload is more variable, a savings plan may be a more cost-effective choice.
AWS Enterprise Discount Program
The Amazon Web Services (AWS) Enterprise Discount Program (EDP) is a pricing program for large enterprises that offers volume-based discounts for customers committing to a consistent level of usage over a one- or three-year period. The EDP is designed to help customers optimize their cloud costs and get the best value from AWS.
To qualify for the EDP, customers must have a minimum annual commitment of $500,000 in eligible services. Eligible services include most AWS products, with the exception of certain services such as Amazon AppStream 2.0 and Amazon WorkSpaces.
The EDP offers two types of discounts:
- 1. Compute Savings Plans: Compute Savings Plans offer discounts on Amazon Elastic Compute Cloud (EC2) and Amazon Elastic Container Service (ECS) instances in exchange for a consistent level of usage over a one- or three-year period.
- 2. Data Transfer Savings Plans: Data Transfer Savings Plans offer discounts on data transfer out of AWS in exchange for a consistent level of usage over a one- or three-year period.
The EDP also offers additional benefits such as the ability to use AWS Cost Explorer and AWS Budgets to track and optimize costs, as well as access to AWS support and training resources. To learn more about the EDP and determine if it is a good fit for your business, you can connect with the GILAS team to discuss your options.
About Amazon
Amazon Web Services (AWS) is a cloud computing platform that provides a range of services, including computing, storage, networking, database, analytics, machine learning, security, and application development. AWS is designed to help businesses of all sizes build, deploy, and scale applications and websites quickly and easily.