(Part 2) 10 things you can do today to reduce AWS costs

In the previous post, we have highlighted 05 things you can do to reduce your cloud cost. Today, we will introduce the last 05 ones to help you optimize your AWS expenses.

#6 Review networking and reduce costs by deleting idle load balancers

Use the Trusted Advisor Idle Load Balancers check to get a report of load balancers that have RequestCount of less than 100 over the past 7 days. Then, use the steps here, to delete these load balancers to reduce costs. Additionally, use the steps provided in this blog, review your data transfer costs using Cost Explorer.

Cost Explorer filters for EC2 Data Transfer

If data transfer from EC2 to the public internet shows up as a significant cost, consider using Amazon CloudFront. Any image, video, or static web content can be cached at AWS edge locations worldwide, using the Amazon CloudFront Content Delivery Network (CDN). CloudFront eliminates the need to over-provision capacity in order to serve potential spikes in traffic.

#7 Use Amazon EC2 Spot Instances to reduce EC2 costs

If your workload is fault-tolerant, use Spot instances to reduce costs by up to 90%. Typical workload examples include big data, containerized workloads, CI/CD, web servers, high-performance computing (HPC), and other test & development workloads. Using EC2 Auto Scaling you can launch both On-Demand and Spot instances to meet a target capacity. Auto Scaling automatically takes care of requesting for Spot instances and attempts to maintain the target capacity even if your Spot instances are interrupted.

#8 Review and modify EC2 AutoScaling Groups configuration

An EC2 Autoscaling group allows your EC2 fleet to expand or shrink based on demand. Review your scaling activity using either the describe-scaling-activity CLI command or on the console using the steps described here. Analyze the result to see if the scaling policy can be tuned to add instances less aggressively. Also review your settings to see if the minimum can be reduced so as to serve end user requests but with a smaller fleet size.

#9 Use Reserved Instances (RI) to reduce RDS, Redshift, ElastiCache and Elasticsearch costs

Use one year, no upfront RIs to get a discount of up to 42% compared to On-Demand pricing. Use the recommendations provided in AWS Cost Explorer RI purchase recommendations, which is based on your RDS, Redshift, ElastiCache and Elasticsearch usage. Make sure you adjust the parameters to one year, no upfront. This requires a one year commitment but the break-even point is typically seven to nine months. I recommend doing #4 before #9

#10 Use Compute Savings Plans to reduce EC2, Fargate and Lambda costs

Compute Savings Plans automatically apply to EC2 instance usage regardless of instance family, size, AZ, region, OS or tenancy, and also apply to Fargate and Lambda usage. Use one year, no upfront Compute Savings Plans to get a discount of up to 54% compared to On-Demand pricing. Use the recommendations provided in AWS Cost Explorer, and ensure that you have chosen compute, one year, no upfront options. Once you sign up for Savings Plans, your compute usage is automatically charged at the discounted Savings Plans prices. Any usage beyond your commitment will be charged at regular On Demand rates. I recommend doing #1 before #10.

Savings Plans Recommendations

Whats Next

With these 10 steps, you can save costs on EC2, Fargate, Lambda, EBS, S3, ELB, RDS, Redshift, DynamoDB, ElastiCache and Elasticsearch. I recommend setting up a budget using AWS Budgets, so that you get alerted when your cost and usage changes.

Set a budget to track your AWS cost and usage

Setup an alert on forecasted costs

Using Budgets, you can set up an alert on forecasted costs too (apart from actual). This gives you the ability to get ahead of the problem and reduce costs proactively.

If you want to learn more about how to save your cloud compution cost, please contact us!

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