AWS Cost Management — (SAA-CO3 Summary 2024)

AWS Cost Management Dashboard

AWS Cost Management Strategies

• Spot Instances
  — Allows users to specify a maximum price for running virtual machines.
  — Reduced pricing when extra datacenter capacity is available.
  — Significant cost savings (up to 70–90%) compared to standard on-demand pricing can be realized.
  — Not suitable for mission-critical services due to non-guaranteed compute capacity if it is a one-time spot instance.
  — Persistent Spot instances are important for workloads that should continue running even if the spot instance is interrupted.
• Ensures that the spot instance gets requested again to take advantage when unused EC2 compute capacity becomes available.
• Reserved Instances
  — Involves a commitment of one to three years for 24/7 usage of EC2 instances.
  — Cost discount over time for specific instance types in a region.
• Saving Plans
  — One to three-year commitment to spending a certain dollar amount on an hourly basis.
  — More flexibility than Reserved Instances.
  — Applies to various resources, including EC2 instances and Lambda functions, regardless of region or instance type.
• Resource Monitoring and Management
  — Monitoring resource usage and removing unused resources.
  — Monitoring performance metrics and resizing instance types.
  — Utilizing AWS Instance Scheduler to…