Ever since its genesis, Amazon Web Services (AWS) has indeed managed to transform numerous businesses from vivid industrial realms. Considering today’s scenario, the rate of AWS deployments is constantly on the rise. This is solely because organizations are realizing the essence of flexibility and innovation, and are trying to instill AWS as the fulcrum of their IT infrastructure.

Gartner predicts that the overall IT spending is expected to rise from $3.5 trillion in 2015, to $3.9 trillion by 2020. This indicates a compound annual growth rate (CAGR) of 2.0 percent. Moreover, the highlighting fact is - during the same period, the aggregate market for public cloud services is expected to grow at an enormously higher CAGR of 17.5 percent.

Cost optimization on the cloud can be painstaking. AWS solves this effectively. In an innovative manner, AWS's wide array of services and pricing models offer the level of flexibility you need to manage your costs; while keeping your business performance intact. Apart from this, AWS offers other forms of innovative services such as the Amazon Redshift and Amazon RDS for Aurora. These services were developed keeping affordability and efficiency in mind—helping you run enterprise-grade solutions at rates far cheaper than the on-premise alternatives.

Deploying AWS gives you the ability to right-size your services effortlessly, utilize the reserved instances, and use best-of-breed cost management tools to monitor your cloud expenses. In short, you will be constantly updated with your cloud costs; opening the window for cost optimization as you proceed in your cloud journey.

So what measures have to be taken to effectively control your costs with AWS?

Read the following steps to gain further insights.

Tailoring Your Services

AWS allows you to tailor your services according to your specific capacity requirements. This avoids the risk of under-provisioning or over-provisioning the capacity. With AWS, you can adapt your services to address actual business needs at any time, with no penalties or incidental fees. Focusing on flexibility, AWS enables you to choose and change the services whenever you need—as per your fluctuating business needs. This also involves the freedom to run multiple services simultaneously.

Boosting Savings with Reserved Capacity

Services such as Amazon EC2 and Amazon RDS allows you to choose reserved capacity. This can help you save a considerable amount of costs when compared to on-demand capacity. 

With AWS, you can avail reserved instances in 3 ways:

  •  All up-front (AURI)
  •  Partial up-front (PURI)
  •  No upfront payments (NURI).

Utilizing the Spot Fleet

Amazon’s EC2 Spot instances allow you to bid on the spare Amazon EC2 computing capacity. As a matter of fact, spot instances are offered at a discounted price, helping you save the costs of running your applications on AWS. On the other hand, with the ‘spot fleet’ feature, you can request a set of spot instances from multiple availability zones and instance types by triggering a single API call.

Dig Deeper into Your Expenses with Cost Explorer

AWS’s Cost Explorer is staged as an innovative platform that helps you analyze your costs and usage instantly. Technically speaking, it portrays a set of default performance reports that help you identify the usage trends and major cost drivers on AWS.

Finally, Leveraging the TCO Calculator

Now that you have made all efforts to achieve unprecedented levels of cost optimization with your AWS, it is time to calculate your savings. AWS also provides a TCO calculator. The calculator allows you to evaluate the savings gained by using AWS—making an end-to-end comparison with on-premise environments.

The gist of a successful cloud cost optimization lies in the ability to understand the key features of AWS, and how they work in a collaborative manner. In case you are still clueless about optimizing costs on AWS, 7EDGE is at the forefront of guiding your organization towards higher productivity. With a proven expertise and experience in AWS implementation, our AWS professionals are constantly focused on formulating a stringent cost optimization strategy.

Originally published , updated March 15 2018