This document discusses strategies for optimizing AWS costs, including right-sizing instances to match workload demands, taking advantage of reserved instances for discounts, leveraging tiered pricing as usage increases, and using the latest instance generations. It also covers AWS pricing policies of paying for what is used, reserving instances for lower prices, higher discounts with greater usage volumes, and decreasing prices over time. Finally, it summarizes the AWS Free Tier offering and how to maximize the benefits.