Top Strategy to Manage AWS Cloud Cost Optimization Challenges Like a Pro

By the turn of the twentieth century, IT witnessed a slow paradigm shift in technology adoption from physical data centers to cloud computing. More so, the adoption of private and public cloud has come as a refreshing change. With public cloud exclusively, like AWS, resources no longer have fixed costs and are charged by the hour. These resources also cost AWS users based on variable pricing, with the price band ranging anywhere from 1x -10x for the same resource based on when the buying decision is made. Even though useful, such variations and complexities in pricing could be confusing and pose as challenges for many enterprises. The best way forward to assuage AWS cloud cost optimization challenges is to use a cloud optimization tool like Botmetric.

Here’s why:

Over-Spending on AWS Cloud

One of the most common mistakes that many AWS users make is over allocation of resources at the setup and overpaying without any review for months and sometime years together. On the other end of the spectrum are those users who purchase everything on-demand, without even considering features like Reserved Instances (RIs), and end up paying more than double the actually required. Managing AWS costs seems tedious, however, it’s not! And with cloud management platforms like Botmetric, optimizing AWS cloud costs is a piece of cake.

Complexity in Finding Right Options

There are several factors that add to the complexity of cost management in AWS. Some of the key factors include:

a) AWS Services and their Configuration Options

Elastic Compute Cloud (EC2), Elastic Block Store (EBS), Lambda, Route 53, and VPC are some of the AWS Services that help fine tune the performance. However, each of these services has multiple configuration parameters that have to be thoroughly understood before configuring the cloud infrastructure. The permutations and combinations of the parameters can run into thousands of variations. With Botmetric, one need not worry about such permutations and combinations of the parameters. For the reason that: the cloud management platform performs 100+ audits and provides the best recommendations in the shortest time possible.

b) Purchasing Options

There are four options for buying the Amazon EC2 Instances, namely on-demand, RIs, spot instances and dedicated hosts. While the on-demand option does not charge upfront, the RI option sometimes feature significant discount (up to 75%) over on-demand pricing but requires upfront payment. Using Botmetric’s RI Planner, users can now make use of recommendations in reserved opportunities. This goes a long way in optimizing costs without the need to involve manual analytics.

c) Volume Discounts

AWS offers volume discounts just like any other business. Users might be able to avail additional volume discounts for RIs if their volumes are high. Using Botmetric’s RI Planner, users can have visibility into their RI usage and thereby avail volume discounts.

d) Architectural Policy Choices

Enterprises might have to create additional redundant instances due to various parameters like scalability, backup facility, etc. , thus adding up the cost. The cloud architect has to consider the tradeoffs between various options available to meet the policy mandate in case there are budgetary restrictions.

e) Region-based Pricing

The prices of instances also vary based on the server locations selected. The cloud architect has to consider the region wise pricing to arrive at an optimal plan, which must also meet governmental regulations.

f) Cloud Platform Market Pricing Trends

Due to competition in the cloud industry, prices are revised every quarter. The cloud architect must consider these pricing trends before committing on volume purchases.

AWS Cloud Cost Management

Lowering TCO (total cost of ownership) is a critical aspect of cloud deployment. A user can forecast financial catastrophe with AWS cloud cost management. Infact, AWS recommends users to strategize based on the following four pillars of cost optimization to get lower TCO:

  • Right sizing the infrastructure
  • Leverage reserved instances as much as possible
  • Increase elasticity and release unused resources
  • Measure, monitor, and improve

Botmetric: Automating Cloud Cost Management with AWS Best Practices

Using Botmetric, AWS users can now use the 4 pillars of AWS Cloud Cost Optimization viz. right sizing, RI, elasticity & monitoring. The key to implement the recommended AWS Cost Management Strategy is to empower users with tools to diligently monitor and audit use by looking for orphaned, underutilized or over provisioned resources. Botmetric analytical engine can analyze, constantly monitor, and identify EC2 instances with low CPU utilization, idle load balancers and RDS databases, underutilized EBS volumes and orphaned IP addresses.

Chiefly, Botmetric can address the cost management issue both from an engineering perspective and a financial perspective. From an engineering perspective, Botmetric can help right size the infrastructure. From a financial perspective, Botmetric leverages tags to automatically identify, group, and attribute costs for projects, applications, departments, and business unit. To learn how to achieve spend efficiency with AWS’ cloud cost management best practices, read our blog here.

This a mere gist of what Botmetric can do. To reap the full potential of cloud optimization, sign up for a free trial now. We’ll be happy to setup an account for your cloud needs. You can also tweet to us @BotmetricHQ or get in touch with us on LinkedIn.