Mehak Narula
Mehak Narula 4 March 2022

Key Effective Ways to Reduce the AWS Cloud Cost

Effective ways to adopting the best practices of cloud cost optimization to reduce AWS cloud costs for organizations.

Identifying Amazon EC2 Instances

AWS Cost Explorer Resource Optimization helps generate reports on EC2 instances that are underutilized or idle. Reducing or closing these instances can help businesses reduce their costs. In addition, AWS Compute Optimizer provides recommendations that go beyond downsizing across instance families and eliminate performance bottlenecks. Using Amazon EC2 Spot and On-Demand Instances further reduces costs. 

If organizations increase capacity as they grow, they also reduce capacity as they decrease. Resizing is a best practice for instances that are not running at excessive maximum utilization. Analyzing usage metrics is essential to look for opportunities to move workloads to different sets of instances that meet needs.

Optimized Continuous Delivery Method

Organizations looking to accelerate time to market with numerous non-production environments often end up spending heavily on infrastructure. However, these costs can be reduced by implementing a streamlined, lightweight continuous delivery process. This helps companies to drive cost-effective releases into production environments along with controlled and well-monitored releases.

The isolated shifting of the test phase to individual applications or microservices can further help companies to implement an optimized continuous delivery process. Most errors are found during service level testing. Another key cost reduction best practice is to reduce the integration test environment, which includes user adoption, functional integration, staging, and performance integration.

Assessment of Amazon RDS and Amazon Redshift

AWS helps organizations identify DB instances that have been offline for a week, which can be paused to optimize costs. Organizations can also identify Redshift clusters and pause those whose average CPU utilization is less than 5% using automation best practices.

In the past, businesses could only benefit from heavy usage discounts if they paid up front. However, the pattern has now changed to duplicate RI purchases for Amazon RDS.

Identifying Amazon EBS Volumes

Several Amazon EBS volumes have low activity, and identifying these volumes allows for cost reduction. Organizations can take snapshots of these volumes and determine which to keep or delete. Amazon Data Lifecycle Manager enables companies to automate the process of creating snapshots, which in turn increases the convenience and efficiency of the process.

One of the biggest challenges companies often face is finding idle resources when following best practices for AWS cost optimization. It's becoming increasingly difficult to identify unattached IP addresses in the AWS console. However, partnering with the right cloud service provider and implementing the right tools can help. 


With the Load Balancer report, organizations can avoid unnecessary ELB consumption. If there is a significant cost  involved in moving data out of EC2, organizations can use Amazon CloudFront because it eliminates the need to over-provision capacity  to handle potential traffic spikes.

Analyzing Usage in Amazon S3 

Analyzing Storage Access Patterns across datasets with S3 Analytics provides organizations with recommentdations on areas where Amazon S3 can be leveraged to reduce costs. You can even automate the transition of resources at a relatively low cost.

AWS currently offers 6 tiers of storage at different pricing. Organizations must be able to decide which storage tier to choose for their data. Some factors influencing the choice are the frequency of  data access and the minimum recovery time required to recover the data. data during a disaster.

Cloud cost optimization has become a high priority in the development and deployment processes. Companies can minimize their costs through flexible and responsive implementations. Leveraging tools, techniques, and best practices to optimize costs in the cloud  is the need for  the most agile operation and the most reliable system.

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