AWS Builders - Cloud Economics

Cloud Financial Management

Cost Optimization Big 5

1. Rightsizing

   • Use appropriately sized instances

     • Amazon CloudWatch metrics analysis

     • Cost explorer

2. Scheduling

   • Operate according to usage time

3. Pricing

   • Utilize various pricing policies

     • On-demand

       • Pay only for EC2 instances used without commitment

         • As you know, the most expensive.. ㅎ_ㅎ

       • Suitable when traffic is unpredictable

     • Reserved Instances (RI)

       • 1 year or 3 year commitment

       • Up to 75% savings compared to on-demand

       • Suitable for consistent/always-on workloads

     • Savings Plans (SP)

       • 1 year or 3 year commitment

       • Suitable for consistent/always-on workloads

       • Details

         • Flexible pricing model that can save up to 72% on EC2, Fargate and Lambda usage

           • ex) If you commit to $10 for one hour, you use compute resources at discounted hourly rates up to $10

         • Apply discounted Savings Plans rates up to committed usage, beyond that apply on-demand rates

       • Purchase method

         • Go to AWS Cost Management and you'll find Savings Plans!

     • Spot Instances

       • Up to 90% savings compared to on-demand through spare computing capacity

       • For batch workloads without time limits

4. Storage

   • Use various storage classes

5. Monitoring

   • Goal setting and execution