{"id":14866,"date":"2020-02-14T16:45:30","date_gmt":"2020-02-14T11:15:30","guid":{"rendered":"https:\/\/www.techjockey.com\/blog\/?p=14866"},"modified":"2026-01-05T13:23:57","modified_gmt":"2026-01-05T07:53:57","slug":"tips-for-cloud-cost-management-on-aws","status":"publish","type":"post","link":"https:\/\/www.techjockey.com\/blog\/tips-for-cloud-cost-management-on-aws","title":{"rendered":"11 Effective Tips for Cloud Cost Management on AWS"},"content":{"rendered":"\n<p>Today, organizations are spending significantly on availing public cloud services, and the cloud infrastructure spending surpassed $80 billion&nbsp;2018! The major IT spending has been in SaaS (48%), IaaS (30%) and PaaS (21%).<\/p>\n\n\n\n<p>Organizations are aiming for higher workload scalability and are quickly moving their applications to the cloud. But a successful cloud migration is just the beginning. Businesses often become complacent after moving their operations to the cloud and bear the high cost of poor cloud management.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"understanding_the_challenges_in_managing_cloud_costs_on_aws\"><\/span>Understanding the Challenges in Managing Cloud Costs on AWS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>With the advancement in cloud technology, more and more businesses are moving their apps and web services to the cloud. AWS (Amazon Web Services) is one such product which is widely used for <a href=\"https:\/\/www.techjockey.com\/category\/dbms-database-management-system\">database storage<\/a> and compute power. <\/p>\n\n\n\n<p>Usually, the budget of companies using AWS cloud computing is\nplanned, and resources are pre-assigned to ensure cloud optimization. Still,\nthere are many such organizations which frequently complain about higher\noperational costs. So, where do the things go wrong? <\/p>\n\n\n\n<p>Here\u2019re a few mistakes which lead to an unplanned cloud\nsprawl and higher costs. <\/p>\n\n\n\n<ul>\n<li><strong>Inelasticity<\/strong><\/li>\n<\/ul>\n\n\n\n<p>AWS autoscaling is one of those features, which allows\nautoscaling of systems to meet changing demands. However, those applications\nwhich require long warm up time may not scale up as per the changing business\nrequirement. <\/p>\n\n\n\n<ul>\n<li><strong>Sub-Optimal Architecture<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Many a times, under the pressure of quick cloud migration,\nbusinesses end up opting for sub-optimal architecture. This results in\ninefficient workloads and higher AWS cost management.<\/p>\n\n\n\n<ul>\n<li><strong>Forecasting Complexity<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Forecasting the budget for new services or meeting the changing\ndemand for existing services are complex, often resulting in faulty costing. <\/p>\n\n\n\n<ul>\n<li><strong>Region-Based Price Variation<\/strong><\/li>\n<\/ul>\n\n\n\n<p>The price of AWS plans varies based on the server location. If\nyour business does not choose the right plan as per the required server location,\nit will result in over costing. <\/p>\n\n\n\n<ul>\n<li><strong>Underutilized EC2 Instances<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Is your EC2 being underutilized or sitting idle? It\u2019s\nimportant to flag such instances and ensure that you are no longer being\ncharged unreasonably. Also, ensure that all your EC2 instances have migrated to\nthe latest version. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"11_tips_to_save_your_organizations_cloud_spend_with_aws\"><\/span>11 Tips to Save Your Organization\u2019s Cloud Spend with AWS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1150\" height=\"1280\" src=\"https:\/\/www.techjockey.com\/blog\/wp-content\/uploads\/2020\/02\/Cloud-Cost-Management-Infographics.png\" alt=\"Cloud migration\" class=\"wp-image-14928\"\/><\/figure><\/div>\n\n\n<p>Public cloud services such as AWS is helping businesses optimize their workload and reduce the expenses on traditional upfront IT requirements. AWS surely helps optimize process efficiency, but is your cloud costs optimized too? Are you spending more on cloud infrastructure management than on-premise setups? If yes, let\u2019s find out the ways to effective AWS cloud cost management. <\/p>\n\n\n\n<ul>\n<li><h3 style=\"font-size:20px;\"><span class=\"ez-toc-section\" id=\"choose_the_right_aws_managed_service_provider\"><\/span>Choose the Right AWS Managed Service Provider<span class=\"ez-toc-section-end\"><\/span><\/h3><\/li>\n<\/ul>\n\n\n\n<p>With a certified managed service provider, you will get professional advice at every step. Access to the <a href=\"https:\/\/www.techjockey.com\/category\/cloud-storage\">best cloud computing technologies<\/a> will not just make the transition smoother but also help save costs. Techjockey is one of the trusted managed service providers for AWS services and most importantly, we provide a committed monthly discount of 4-8% on your spends. So, leave all your cloud AWS infrastructure management worries with us and enjoy the next-gen cloud computing technologies.<\/p>\n\n\n\n<ul>\n<li><h3><span class=\"ez-toc-section\" id=\"adopt_aws_in_hybrid_setup_with_netapp\"><\/span>Adopt AWS in Hybrid Setup with NetApp<span class=\"ez-toc-section-end\"><\/span><\/h3><\/li>\n<\/ul>\n\n\n\n<p>You might have heard about <a href=\"https:\/\/www.techjockey.com\/brand\/netapp\">NetApp<\/a> storage-focused AWS calculator. This is helping businesses analyse the effect of different storage tiers on your cloud computing cost. The expertise of NetApp in reducing AWS cloud computing costs can be further utilized by switching to NetApp on-premise data storage model. With a hybrid data storage setup on AWS and NetApp on-premise servers, you can cut down on the cloud costs while ensuring data security.&nbsp;<\/p>\n\n\n\n<p>NetApp storage features include compression, compaction and deduplication, which helps reduce the storage space. Also, the data in transit is shrunk to limit the data transfer costs. Further, OneTap\u2019s data tiering between AmazonS3 and Amazon EBS ensure that the less used data is stored automatically in S3. As the usage increases, the data is automatically tiered back to Amazon EBS.<\/p>\n\n\n\n<ul>\n<li><h3 style=\"font-size:20px;\"><span class=\"ez-toc-section\" id=\"shutdown_aws_resources_if_not_in_use\"><\/span>Shutdown AWS Resources If Not in Use<span class=\"ez-toc-section-end\"><\/span><\/h3><\/li>\n<\/ul>\n\n\n\n<p>Unused instances are nothing but a burden to your cloud budget. You need to take a conscious effort to shut down idle instances. Also, it will not affect the configuration of your existing infrastructure.<\/p>\n\n\n\n<ul>\n<li><h3 style=\"font-size:20px;\"><span class=\"ez-toc-section\" id=\"opt_for_appropriate_storage_class\"><\/span>Opt for Appropriate Storage Class<span class=\"ez-toc-section-end\"><\/span><\/h3><\/li>\n<\/ul>\n\n\n\n<p>Amazon S3 object storage is available in five different tiers depending on the storage amount, HTTP GET requests, data volume, etc. The cost of different types of storage is further decided on these factors. It\u2019s advised that you choose Amazon object storage tier wisely based on the amount of data that needs to be managed.<\/p>\n\n\n\n<ul>\n<li><h3 style=\"font-size:20px;\"><span class=\"ez-toc-section\" id=\"select_the_right_instance_type\"><\/span>Select the Right Instance Type<span class=\"ez-toc-section-end\"><\/span><\/h3><\/li>\n<\/ul>\n\n\n\n<p>You need to select those instance families that suit your application workload. When you know the amount of memory you need to run services, you can minimize the cloud spend significantly.<\/p>\n\n\n\n<ul>\n<li><h3 style=\"font-size:20px;\"><span class=\"ez-toc-section\" id=\"opt_for_aws_cost_management_options\"><\/span>Opt for AWS Cost Management Options<span class=\"ez-toc-section-end\"><\/span><\/h3><\/li>\n<\/ul>\n\n\n\n<p>This is one of the most effective services by Amazon, which\nhelps with usage reports and customized usage costs. You can also analyse your\nreserved instances and choose a flexible pricing as per your compute usage. <\/p>\n\n\n\n<ul>\n<li><h3 style=\"font-size:20px;\"><span class=\"ez-toc-section\" id=\"monitor_track_and_analyse_your_services_usage\"><\/span>Monitor, Track and Analyse your Services Usage<span class=\"ez-toc-section-end\"><\/span><\/h3><\/li>\n<\/ul>\n\n\n\n<p>You need to access your workload regularly to analyse the requirement of sizing up or down. You can use different tools to access your instances on pre-set metrics. There are tools like Amazon Cloudwatch to <a href=\"https:\/\/www.techjockey.com\/category\/desktop-monitoring-software\">monitor your log files<\/a> and track changes in your resources. This way, you can achieve resource optimization and get rid of wasteful workloads. <\/p>\n\n\n\n<ul>\n<li><h3 style=\"font-size:20px;\"><span class=\"ez-toc-section\" id=\"consider_the_idea_of_spot_pricing\"><\/span>Consider the Idea of Spot Pricing<span class=\"ez-toc-section-end\"><\/span><\/h3><\/li>\n<\/ul>\n\n\n\n<p>Spot pricing is about setting a price ceiling for a bunch of <a href=\"https:\/\/www.techjockey.com\/detail\/amazon-ec2\">EC2 instances<\/a>. If the price goes above the set limit, you can consider removing certain instances and pay only for what is being used. It\u2019s important to track your usage trends consistently, so that you can figure out the ones with higher spending. <\/p>\n\n\n\n<ul>\n<li><h3 style=\"font-size:20px;\"><span class=\"ez-toc-section\" id=\"opt_for_reserved_instances\"><\/span>Opt for Reserved Instances<span class=\"ez-toc-section-end\"><\/span><\/h3><\/li>\n<\/ul>\n\n\n\n<p>You can get a reserved instance with the commitment of 1-3\nyears for a specific capacity and hourly rate.&nbsp;\nIn the future, if the demand varies, you can reduce the duration of a\nreserved instance or sell it back. This way, you can save significantly in\ncomparison to on-demand capacity.<\/p>\n\n\n\n<ul>\n<li><h3 style=\"font-size:20px;\"><span class=\"ez-toc-section\" id=\"auto_scale_your_applications_architecture\"><\/span>Auto Scale Your Application\u2019s Architecture<span class=\"ez-toc-section-end\"><\/span><\/h3><\/li>\n<\/ul>\n\n\n\n<p>Based on the spike in your customers\u2019 demand, you can add\nnew resources or turn your instances off. Along with better cloud cost\nmanagement, auto scaling also helps with detecting unhealthy instances on time\nand replace them. <\/p>\n\n\n\n<ul>\n<li><h3 style=\"font-size:20px;\"><span class=\"ez-toc-section\" id=\"use_trusted_advisor_feature_of_aws\"><\/span>Use Trusted Advisor Feature of AWS<span class=\"ez-toc-section-end\"><\/span><\/h3><\/li>\n<\/ul>\n\n\n\n<p>This feature helps scan all your resources and services to check if those are optimized for cost savings. At the same time, the Trusted Advisor helps save money on every service or feature you are using.  Now that you have mastered the basics of AWS cost management, it\u2019s time to adopt better strategies to control your spend in the FY 2010-22.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Today, organizations are spending significantly on availing public cloud services, and the cloud infrastructure spending surpassed $80 billion&nbsp;2018! The major IT spending has been in SaaS (48%), IaaS (30%) and PaaS (21%). Organizations are aiming for higher workload scalability and are quickly moving their applications to the cloud. But a successful cloud migration is just [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":14937,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9231],"tags":[7574,7576,7575],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v22.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>11 Effective Tips for Cloud Cost Management on AWS<\/title>\n<meta name=\"description\" content=\"AWS cloud technology has transformed IT environment of modern-day businesses. But are they really saving on cloud costs? Check AWS cloud management tips.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.techjockey.com\/blog\/wp-json\/wp\/v2\/posts\/14866\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"11 Effective Tips for Cloud Cost Management on AWS\" \/>\n<meta property=\"og:description\" content=\"AWS cloud technology has transformed IT environment of modern-day businesses. But are they really saving on cloud costs? 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