AWS usage costs tend to skyrocket over the period of use, leading your business to unnecessary OPEX. Consultants here at VaporVM, have come up with 7 effective ways to drive down your AWS costs to an optimal level. Take a look below:
1- Remembering the Pareto Principle
According to the research we’ve done on our own customer base, we’ve learned that compute and block storage resources (EC2 and EBS) account for over 80% of AWS costs. Adding 10% for S3 and RDS usage then accounts for over 90% of AWS costs. This can help indicate which resources should or should not be considered for price optimization.
2- Tracking Reserved Capacity Usage
It’s important to monitor your usage closely and be aware of the capacity that you use. We’ve found that over the past year, customers using AWS didn’t enjoy using RIs because of the fear of being locked in. However, RIs offer a tremendous pricing advantage, reducing costs by 30-60% (and even up to 75% in extreme cases). When it comes to making decisions about RI purchases, having a system in place that tracks usage is key. RIs are a great cost saving option if you plan on using AWS resources for more than six or seven months a year.
3- Small Discount Rate Delta Between Reserved Capacity Payment Options
AWS’ pricing method for RIs offers three payment approaches: All Upfront, No Upfront (paying a fixed monthly amount for RIs), or Partial Upfront (paying part of the cost upfront and the rest in monthly installments). It also reserves capacity allowing you to start resources when needed.
Mostly businesses find it difficult in acquiring the right workloads for the right payment options, since most of them are inexperienced. And end up making the wrong decisions, leading them to increasing costs. With AWS’ new Reserved Instance pricing model, if a reserved resource isn’t in use or created, you’re losing money because AWS will still charge you for the reserved capacity. We would recommend that, if you have no cash flow constraints, you should use the All Upfront option for most purchases in order to get the largest compound discount.
However, the discounted rates between the All Upfront and Partial Upfront payment options is very small. Depending on your liquidity, you can alternate between All Upfront and Partial Upfront payments without it affecting the discounted rate too much. On the other hand, the discounted rate is substantially lower with the No Upfront option.
4- Repurposing Unused RIs
AWS lets you repurpose RIs, without penalty, if they’re not used for their initial instance configuration. When repurposing RIs that aren’t in use, you can change their size within the same instance family (current or previous generation of the same family), modify their Availability Zones, as long as they’re in the same AWS region, and adjust between EC2-Classic and EC2-VPC. Alternatively, if you have RIs that you are not using, and can’t be repurposed, you can sell them in AWS Marketplace. It’s important to note that AWS allows you to repurpose Linux instances, however, that does not include repurposing from open source Linux to RHEL.
5- Reservations Are Not Only for EC2 Instances
Many websites and blog posts that try to explain AWS pricing, tend to focus on RIs for EC2 instances without mentioning the option of using RIs for relational databases (RDS) and DynamoDB. Databases are a very significant portion of your steady capacity and often run 24/7, making RIs a worthwhile investment.
6- S3, Reduced Redundancy Storage (RRS), and Glacier
AWS offers three types of object storage. The most well known, S3, promises you a certain level of redundancy across availability zones [99.999999999% durability] within a region. If you’re willing to compromise on reduced redundancy, you can purchase Reduced Redundancy Storage (RRS), which costs about 20% less and offers less redundancy [99.99% durability] than S3. Finally, Glacier offers archival services similar to tape backup in traditional data centers. The upside to Glacier is that it’s very cheap, at around one cent ($0.01) per gigabyte per month. The downside is that object retrieval takes around four to five hours.
7. Credits and Discounts
AWS offers discounts as usage increases. As we know, Reserved Instances help reduce costs. In some cases, AWS offers credits (such as promotional credits, coupons for attending workshops, credits for charges, etc.) instead of monetary discounts. AWS’ Trusted Advisor can also be used to save up on costs for new startups.
Similar to the RI model, AWS offers reduced prices for greater storage usage. For example, AWS S3 charges less as your storage size increases beyond 1/50/500 TB.
Whether you are just getting started on AWS or are looking for AWS management and support for your existing AWS cloud, our team of top-class system administrators, cloud engineers, and network technicians customise solutions to the goals and specific requirements of your company, while meeting enterprise-grade performance, reliability, and security standards. Consequently, VaporVM improves efficiency of your existing AWS infrastructure & cuts costs by up to 30%, consequently improving the ROI on your AWS investments. Providing tech support 24x7x365, we make sure that your infrastructure is constantly monitored and possible glitches are removed even before they occur.