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CostOptimization.md

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cost management: The ability to give visibility of costs to keep them under control and to enable cost optimization

cost optimization: The ability to run systems to deliver business value at the lowest possible price point

overview

  • use consolidated billing to aggregate spend from multiple accounts into a single bill and take advantage of volume discounts

  • use cost allocation tags to group resources and track spend in business terms that make sense to you, by project, cost center, application, or environment

  • cost explorer provides visibility into your AWS spend and aws budgets allow you to monitor and raises alarms when spending crosses defined thresholds

    AWS tools for cost visibility

    • AWS cosst explorer
    • AWS Budgets
    • cost anomaly detection
    • Monthly AWS Bill AWS Billing console
    • custom inhouse or thirdparty solutions

cloud intelligence dashboards

  • A series of in-depth and customizable dashboards that provide the most comprehensive cost and usage details to help you optimize cost, track usage goals, and achieve operational excellence.

  • Easy to use

  • secure

  • in-depth

  • cost-efficient

Tools for right sizing and finding unused resources

  • AWS Trusted Advisor, CUDOS, compute optimizer, EC2 Rightsizing Recommendations(Cost Explorer)
  • AWS cloudwatch (review metrics such as CPU Utilization %)
  • TSO Logic (for pre-migration on-prem to AWS resource mapping)
  • 3 rd party tools (including by not limited to): Stax, densify, cloudfix

Tools for increasing elasticity/automation

  • Autoscaling
  • AWS Instance Scheduler
  • 3 rd party paid tools (including but not limited to) : Granulate, gorillastack, skedddly, parkmycloudAPI

Tools for Reserved instances & saving plans

  • AWS cost Explorer (coverage, utilisation, and recommendations)
  • AWS Cost and usage reports (hourly and resource-level granularity)
  • AWS Budgets (utilization and coverage threshold warnings via email or SNS)
  • 3 rd party tools (including but not limited to ) : Cloudhealth, zesty, apptio

Tools for EC2 spt

  • AWS Ec2 fleet
  • AWS Spot fleet, pot instance advisor
  • EC2 spot labs
  • 3 rd party tools (including but not limited to): Bidelastic and spot etc

Tagging Benefits

  • operational support
  • Cost and usage allocation
  • Automation
  • Control and compilance

Tagging strategy

  • Identify a set of tags using cross functional teams

  • Define a tagging naming standard & dictionary

    env = dev/test/stg/prod

  • publish the tagging dictionary

    Feedback + Announce + Refer

  • Define "rules of the game"

    Deployment Automation

  • Enforce the rules

    Re-active enforcement

  • start small and iterate

    Monthly

    • TagCoverage %
    • Un-allocated spend/usage
    • Tag dictionary review

Tagging -Tools

  • Turning on cost allocation tags
  • Tag editor to bulk filter, add, and edit tags
  • Tag policies in AWS organizations to improve governance
Tool Name Description
Billing console Review AWS charges and invoices, enable billing reports
AWS Cost explorer Visually analyze AWS spend across multiple dimensions
AWS Cost anomaly Detection Automated cost anamaly detection and root cause analysis
AWS Budgets Improve planning and cost control with flexible budgeting and forecasting
CID/CUDOS in depth, granular, and recommendation-driven dashboards
Cost allocation tags Enable tag keys to be used as dimensions in billing reports and cost explorer
Cost and usage report Review most granular (hourly, resource level) cost and usage data
Pricing calculator calculate cost based upon estimated usage of AWS services
Trusted Advisor Review cost optimization recommendations produced by TA
Compute optimizer Get recommendations to optimize your EC2, EBS, Autoscaling & lambda resorues based on their utilization metrics data
Workspaces cost optimizer Monitor amazon workspaces usage and optimize costs
Instance Scheduler Automate stop/start scheduled of your EC2 or RDS instances
AWS Cost labs AWS well-architected cost labs