AWS Cloud Cost Optimization
- 1. AWS Cloud Cost Optimization w w w . s u c c e s s i v e . c l o u d
- 2. Organizations rely on Amazon Web Services (AWS) to increase agility, flexibility, and operational efficiency of business applications and processes at higher velocity. Managing operations and costs in the cloud is different from managing on-premises data centers. However, it eliminates the burden of heavy lifting of racking, stacking, and powering servers. Enterprises can lower their variable costs by investing in cloud and save millions of dollars in a few minutes. Many CTOs, CIOs and IT leaders believe that utilization of cloud-based infrastructure (servers, services, applications) is to be at the forefront of their business road- map and management of its cost is the major priority for them. Optimize your AWS Cloud costs and lower your Total cost of Ownership (TCO) 01
- 3. Cloud Cost Optimization Challenges Forecasting complexity It is a fundamental challenge to cloud cost control, and it needs the right data and skills. Oversizing This is one of the most common reasons for overspending on cloud resources and even the simplest to solve. Sub-optimal architecture Higher cloud cost can be incurred if you select this architecture for your workload. Software inefficiency It cannot measure the right efficiency of software and cloud cost control. Inelasticity Inefficient applications take long warm up times and does not auto-scale quickly. Autoscaling is the right option to control cloud cost. The adoption of Public Cloud does not only provide greater benefits but also adds some challenges to manage cloud spending regularly. Through the cloud types such as IaaS and PaaS, organizations are adding numerous bills continuously as the cloud resources consumption occurs and resists the struggling situation to generate right cost estimates. There are five common challenges to cloud cost control. Cloud cost optimization is the process of finding cost-effective techniques to enhance the cloud usage & efficiency and diminish the costs. Implementing the right cloud cost management strategy can help your organization plan for future cloud costs and consumption. To gain the optimal benefits from Cloud Cost Management, it requires right mapping and collaboration among different disciplines such as Finance, IT & Operations, Product Development, Security & Governance. It is very essential for an IT organization not only to optimize cloud costs and resources, but to align cloud costs at the right place. Predicting, reducing, and optimizing the cloud cost is the key business value that organizations want to achieve for their highly available products and faster innovation. Cloud Cost Optimization 02
- 4. Cost Optimization Techniques 03 Ask for Credits - AWS offers credits to all enterprises including startups. You can ask for these credits with your account manager and save lots of money. Invest into reserved instances - Always buy reserved instances and locate into several availability zones. Rightsizing the resources - Select the rightsizing of EC2 instances and monitor the resources timely. AWS EC2 Spot Instances can save you a huge cost and AWS Trusted Advisor can help you in provisioning resources correctly. S3 cost saving - Leverage S3 VPC endpoint and save thousands of dollars per month depending upon its volume. Implementing object lifecycle management can optimize the cost for data storage. Leverage Managed Services - Reduce the license cost and manage the cost of infrastructure by using Managed Services. For example, Amazon RDS and Amazon DynamoDB are database managed services. Select Geographic location - Utilize Amazon CloudFront and select the right AWS region to minimize costs. North Virginia, Ohio and Oregon are the cheapest regions and Sao Paulo, Sydney, and Hong Kong are the most expensive regions. Data transfer cost - Reduce the data transfer cost by selecting fewer regions and availability zones and consolidate your applications. Follow a cost savings routine - Monitor all AWS accounts and prioritize the cost reduction activities. For example, Lambda function provides the ingestion of detailed billing reports into Redshift every day. Forecast and cost prediction - Use AWS Total Cost of Ownership (TCO) Calculator, AWS Budgets, AWS Simple Monthly Calculator to forecast the application usage cost and plan the service usage in advance. Right purchasing option - AWS Cost Explorer is the free tool and can be used to analyze the cost spent on different AWS resources. There are various options available in many forms to optimize the cost:
- 5. Choose Right pricing models- • Use Reserved Instances (RI) to reduce RDS, Redshift, ElastiCache and Elasticsearch costs. • Use Amazon EC2 Spot Instances to reduce EC2 costs. • Use Compute Savings Plans to reduce EC2, Fargate and Lambda costs. Match Capacity with Demand- • Identify Amazon EC2 instances with low-utilization and reduce cost by stopping or rightsizing. • Identify Amazon RDS, Amazon Redshift instances with low utilization and reduce cost by stopping (RDS) and pausing (Redshift). • Analyze Amazon DynamoDB usage and reduce cost by leveraging Autoscaling or On-demand. Implement processes to identify resource waste- • Identify Amazon EBS volumes with low-utilization, first snapshot the volume to reduce cost then delete these volumes. • Analyze Amazon S3 usage and reduce cost by leveraging lower cost storage tiers. • Review networking and reduce costs by deleting idle load balancers. Cost Optimization Pillar - AWS Well-Architected Framework Other AWS Cost Optimization best practices are: Performance Effciency Cost Optimization Reliability Operational Excellence Security 04 The AWS Well-Architected Framework is the foundation for cloud success, and it describes key concepts, design principles and the best practices for building architectures and running the workloads in the cloud. Although this framework is designed on five pillars and follows a set of practices in building resilient and agile applications in your IT ecosystem.
- 6. • Cloud financial management with AWS transforms business with cost transparency, control, forecasting and optimization. • Optimize the cost and align cloud investments into business roadmap for better cost aware culture and processes. • Formalize cross-functional working group (Cloud Center of Excellence) to govern the cloud cost usage across different functions. • Identify cost optimization opportunities by selecting cost drivers those are very critical across systems. • Segregate the different business units, projects, and applications those are not in active stage and driving unnecessary cloud spend. • Reduce the complexities of muti-cloud management and cost optimization, AWS native tools provide the centralized cloud management platform. • Choose the best pricing model that is designed as per your business needs, as there are multiple AWS pricing model available in market. • Understand correct size, type, and the number of resources within your cloud ecosystem. • Rightsizing existing resources and applying for AWS discounts are also the best ways to save money. • Eliminate the cost and unnecessary overprovisioning. • Apply the policy driven automation, governance and configure the centralized cloud management platform for monitoring. • Manage the demand and supply the resources at the right time. • Match all cloud KPIs to your business strategies and objectives. • Follow the review process for applications, systems and workloads alignment and ensure cloud environment remains optimized over time. • Always check for AWS latest innovation solution for better cost optimization. 05 Practice Cloud Financial Management (CFM) Expenditure and Usage Awareness Cost Effective Resources Manage Demand and Supply Resources Optimization Over Time Our E-book is primarily focussed on the Cost Optimization pillar of the AWS-Well Architected Framework. The objective of cost optimization is to achieve the business results at the lowest costs as much as possible. AWS bestows over 150 services for creating cloud-based systems and deploying different workloads. Hence, it provides subsets of these AWS services to help you with Cost Optimization and Management.
- 7. Cost Optimization is an ongoing activity in the IT landscape and organizations need to establish their cost optimization strategy in the early stage for the right processes and decisions. To save millions of dollars on cloud resources, every industry needs the right set of tools, processes and the people to manage the costs effectively. The key to optimize the costs is to have detailed knowledge about all the AWS cost savings services. We at Successive Cloud holistically and proactively manage your cloud environment while optimizing your cloud spend and run cost-effective cloud operations. Our cost optimization services, and pricing options offer the flexibility to effectively manage your costs and keep the performance, capacity, latency you require at most. We follow best practices – Cloud Financial Management to control the cost over variable spend of the cloud. Our cloud experts will help you to have the real monitoring of your AWS resources and its right alignment for cost dashboards. We are dedicated to helping our clients achieve the highest saving potential. Conclusion 06
- 8. +1-214-642-8027 hello@successive.cloud 606 Lake Park Drive Coppell, Texas, 75019 Get in Touch We'd love to help you start exceeding your business goals