5 Cost Management Best Practices For AWS

EC2 YOU’RE PROBABLY DOING IT WRONG:

EC2 or AWS management services is listed as representing over 70% of AWS’s revenue. EC2 also makes the core of most Cloud environments we understand and consequently represents the single comprehensive cost management challenge for AWS users. Despite consistent price reductions (over 40 consecutively), the growth among existing AWS users means that the cost of EC2 can intensify quickly and companies often struggle to understand and control spiraling costs.

THE TACTICS YOU CAN IMPLEMENT TODAY:

Key Take-Away:
Stopping unused instances can unlock significant EC2 savings. To make efficient use of parking:

1. Use tags to group resources into easily identifiable categories that reflect the structure of your environment.

2. Use a systematic approach to scheduling parking, whether a well-documented policy of scripts via the AWS CLI or tool like Schedules.

3. Scheduling Usage – Park Unused Instances

Large savings can be achieved in non-production workload environments by organizing scheduled downtime of EC2 instances in times of low demand. Environments such as dev-test, staging or sandpits are all prime candidates for parking when not in use.

4. Right Sizing Your Resources

The great thing about the Cloud is that you can experiment with the size, configuration, and cost until you are happy. Ec2 now provides 40 instance types based on size. The 40 instance types are split across 5 Instance Families, optimized for different workloads. The two items you can most easily rightsize are instance size and volume type. If an instance is being underutilized, then you can switch down a size or two. The other item that you can change is the disk storage type and performance.

5. Auto Scaling

The use of autoscaling groups is great for providing extra capacity during busy periods, such as for online retailers with highly seasonal traffic, but how do you manage the low periods? Autoscaling groups are quite technical and configuration specific. You can manually adjust the settings for the low periods, however, if these were mostly weekends, you would need an automated task or scheduled action to scale-down the autoscaling group to prevent unnecessary costs from being incurred.