AWS cost optimization is the process of adjusting software architecture and performance in such a way that it works better at a lower cost thanks to a more effective use of cloud storage and computing. You can achieve this by simplifying workflows, reducing resource usage, and choosing the right tools for the work – among other things!
Naturally, effective cost optimization means lower AWS bills! We know this is especially important for startups and small companies with tight budgets. You can reinvest these savings in other areas of your business.
Cost optimization is equally important for companies that are scaling up, as the expenses can hike rapidly then. Right-sizing and auto-scaling resources are crucial for keeping these costs under control without compromising user experience.
In inexperienced developers’ hands, cloud services can be somewhat unpredictable. When you monitor your resource use and proactively manage your expenses, very little can surprise you and you will avoid the dreaded cost spikes.
While improving operational efficiency isn’t necessarily the goal of AWS cost optimization, it’s both a necessary and desirable byproduct. By adjusting resources and streamlining processes you not only lower the costs, but also improve the way your team works.
Keeping your expenses low allows you to keep your prices low as well, making your product more attractive to clients.
How did they do that?
The biggest advantage of the cloud is that you don’t have to own physical servers and therefore you have the flexibility of choosing and changing what instance type (i.e. server resources) you need. Use this to your advantage and adjust your instances to avoid overprovisioning.
Set up your budget and alerts to notify you when you’re going to exceed it. Also, check your AWS usage and spending regularly to determine which expenses are high and need to be addressed first. You can do that using AWS Cost Explorer or third-party tools.
Reviewing and deleting unnecessary data is one proven way of optimizing your AWS costs. But for the data that remains, it is equally important to choose storage classes that match your needs with regards to availability and durability.
If you know that your workload will be steady over time and you’re certain when they will be used, consider committing to reserved instances, as opposed to on-demand ones. They can be significantly less expensive (up to 72% according to AWS themselves) and ensure your bill remains the same.
If your workload is not so predictable, you can still optimize your AWS costs with spot instances. Although they’re very unreliable, they can still be used for non-critical and interruptible tasks, and they sell for pennies on the dollar compared to on-demand pricing!
You don’t have to know all these things or do them yourself – you can always rely on third-party tools or, even better, on services from companies like Gorrion! We can analyze your expenses, provide recommendations, and implement changes that will save you some bucks!
If you have an experienced development team on board, nothing is stopping you from optimizing AWS costs today on your own! There are plenty of tutorials (even from AWS themselves!) and case studies you can use for reference.
You can also leverage cost optimization tools from AWS (such as AWS Cost Explorer, AWS Budgets) or third-party providers. They’ll give you advanced analytics, recommendations, and automations that can help you better manage your AWS costs.
If you don’t have access to the right resources or knowledge, leave it to experts like us! We have the expertise gained from hundreds of successful projects, certified AWS experts, and access to tools for AWS cost optimization.
We don’t believe in jacks of all trades, which is why – unlike many other companies – we specialize only in AWS cloud development and have certified AWS cloud solutions architects on board.
With over 200+ projects under our belt, we’re experienced in building products from the ground up, improving existing software, and optimizing costs for many clients.
Expenses analysis
Architecture design or review
Recommendations
Change implementation
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