Cost Optimization With AWS – Managing Costs, Intelligently

Cost Optimization in AWS is a serious concern for organizations and they look for effective measures to achieve this in a better way. Amazon offers three AWS pricing models to suit the needs of enterprises at various stages of their business cycles. Among these models, the most popular on-demand one charges on the basis of actual usage i.e. hourly compute/storage or I/O capacity consumption. This model has successfully created a simple and easy way to decrease costs for organizations. Even if the organizations are facing challenges in managing their cloud business, this model can save them from the troubles of high expenditures.

Cost Optimization can also be done by using the option of reserving EC2 instances. It can reduce the price by 30-50% for organizations. Botmetric Reserved Instance Planner is a smart feature that  gives you full visibility into used and unused instances.  It also gives you smart insights on how you can effectively reserve the unused workload-critical instances. With Unused Reserved instance Analyzer, you get smart EC2 recommendations on how you can modify the unused instances to save upto 30% more on your cloud spend.

With Botmetric that can scale to thousands of Amazon Elastic Compute Cloud (EC2) instances, cost optimization has become a reality. But, managing the costs is far from simple even in today’s time.

Let’s see 5 of the major guidelines that can help you in optimizing cloud costs with Botmetric.

Identifying the Pareto Principle

Every time it has been observed  that compute and block storage resources (EC2 and EBS) are responsible for over 80% of AWS costs. If 10% for S3 and RDS usage can be added, it will account for over 90% of AWS costs. This can also help in indicating the resources which can be considered for cost optimization.

Checking Reserved Capacity Usages

It is very important to check and keep a track of your usage personally and be attentive about the capacity that is being used. Over the past year, it has been seen that enterprises using AWS didn’t benefit from using RIs because they were scared of being locked in. But this is not a good practice as RIs provide a marvelous pricing benefit by decreasing costs by 30-60% and even up to 75% in some of the cases. If enterprises need to take decisions about RI purchases, they should have a system in place that can track their usages. Botmetric RI Planner is one such feature that gives you a detailed view of reserved EC2 instances for your AWS account.


RIs are a great cost saving choice for enterprises keen on using AWS resources for more than six or seven months a year.

Small Discount Rate Delta between Reserved Capacity Payment Choices

AWS’s pricing technique for RIs provides three payment approaches: All Upfront, No Upfront (paying a fixed monthly amount for RIs), and Partial Upfront (paying part of the cost upfront and the rest in monthly installments). The AWS Reserved Instance pricing model suggests that if a reserved resource isn’t being used, enterprises lose money as AWS still charges them for the reserved capacity. Also, if they do not have any cash flow constraints, it is better for enterprises to use All Upfront option to get the largest compound discount.

The discounted rates between the All Upfront and Partial Upfront payment options are very small. Enterprises can choose between All Upfront and Partial Upfront payments depending upon their requirements. Also, the discounted rate is significantly lower with the No Upfront option.

Reservations Are Not Only for EC2 Instances

For enterprises, there is always an option of using RIs for relational databases (RDS) and DynamoDB. Databases can prove to be a major resource for your steady capacity and often run 24/7. Thus, establishing that reservations are not only for EC2 instances but RIs are also a worthy investments. Botmetric provides you with an extension to further get a detailed view of reserved RDS instances for your AWS account. See how many instances you have used, how many are unused, and how many you have successfully reserved. (Available in our 14-day free trial)

Credits and Discounts

Discounts are provided by AWS with increased usages. Already, Reserved Instances help in reducing costs for organizations, but AWS offers further discount of about 5-10% if the total value of organization’s RIs is over $500,000. Sometimes, rather than giving direct discounts AWS offers promotional credits and discount coupons which can be used to save on costs.

AWS cloud is a cost saving platform for organizations using cloud services. And with Botmetric, if you have planned appropriately, it can be of great help. With the help of AWS, you can change your pricing model if by mistake you opted for a wrong one. It is a great advantage in comparison with the in-house hosting that leaves organizations stuck with acquired infrastructure and worries about ROI. The pace of innovation and cost adjustment that AWS follows makes it logical to keep organizations updated about their business niches. Using ECU Based Cost Analysis On AWS also gives Better Cost Optimization. Read more, here.

Before buying a new service or expanding their AWS usage, organizations should make sure to use the AWS calculator. This will give them a forecast of their upcoming spends. Botmetric Cost Optimizer gives you a detailed view of your total spend across all AWS accounts. It also caters smart potential saving forecasts. In the market, many vendors are there to offer you recommendations and suggest you services. The users need to visualize and analyze trends in their monthly and daily spending. Botmetric gives you a daily, weekly, monthly budget alerts on your total cloud spend till date. Sometimes prices fluctuate and it becomes difficult to decide about the one to go for. To choose the best one, it is good to be aware of the costs in advance. Our Advanced Cost Explorer keeps you on track with your cloud spendings.


Botmetric Cost Projection features helps you to predict and estimate your AWS Cost on monthly and yearly basis. Another icing on the cake is our cost allocation feature. You can keep full track and control of your cloud costs aggregated by tags.


With time, the public cloud is maintaining its pace and continues to achieve reputation in the IT operations of most of the businesses. The more it is developing, more is the need to maintain cost-efficient cloud operations and enterprises are aware of this crucial requirement. To achieve this, there is requirement of effective monitoring and an enthusiasm to take quick action which will not only optimize costs for enterprises but also help them in running their business efficiently and smoothly. Botmetric ensures complete cloud management and smart spend management.

And as we say, savings come in small kernels, Botmetric makes sure you save more on cloud, as you advance.

Take up a 14-day free trial, and enjoy all our Cost Optimization features to trim some fat off you AWS bill.  If you are looking to learn more about our product updates, get in touch with us on Twitter!

Sakshi Gaurav

Sakshi Gaurav is the head of the content team at Botmetric. She's an inspiring leader and a dedicated hard working writer. She holds a special place in her heart for books. With more than 10 years of experience in her pocket, Sakshi is a true value add to the Botmetric team.

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