cloudomatic.com | How to Save Cloud Costs
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How to Save Cloud Costs

The Pareto principle (also known as the 80–20 rule) states that, for many events, roughly 80% of the effects come from 20% of the causes. The same applies to AWS cloud and typically 60-80% of the cost comes from compute instances in EC2 / RDS / Elasticache.

 

A study of 450 customers totalling 165,00 instances found the following AWS cost breakdown:

 costpie

 

The golden rules for cloud cost savings are:

  • Identify and delete resource that are no longer required
  • Only deploy resources for business approved projects
  • Allocate metadata tags to all resources that can identify business purpose and owner of each resources
  • Most enterprise cloud users waste resource and have underutilised AWS resources. Right size all resources, cloud is elastic so easy to change size.
  • Stop non-production resources at night time, weekends, holidays to save costs
  • Commit to resources for long period to get significant discount, Reserved Instances.
  • Review costs on regular basis. Identify person responsible for cloud costs.
  • Create culture of cloud cost saving in organisation, cost saving should be part of employees KPIs
  • Automate

The greatest cloud cost savings are:

  • Identify and delete resource that are no longer required
  • Rightsize EC2/RDS/Elasticache instances
  • Stop resources at night time, weekends, holidays whenever possible
  • Use Reserved Instances (this is a last step!)

Other significant cost savings are:

  • Delete unused EC2/RDS/Elasticache instances
  • Delete unused unattached EBS volumes
  • Rightsizing EBS volumes
  • Reducing AMIs/snapshots by deleting old and unused storage
  • Reduce S3 by deleting old and unused storage and using lifecycle policies to move data to lower cost storage classes
  • Eliminate inactive ELBs
  • Optimising autoscaling groups
  • Automatically terminate resources from unapproved projects
  • Visibility of all AWS costs and daily reports ensure costs are controlled. This essential for good governance and gives the CFO insight how costs are spent for every project, business division, every AWS resource.