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Cost Optimization on AWS: 10 Tips to Save Money


AWS (Amazon Web Services) is a popular cloud computing platform that offers a wide range of services, including computing power, storage, and databases. While AWS can provide a great deal of flexibility and scalability for your business, it can also come with a significant cost if we don't pay attention or if we try to use the cloud like we used to do in the past with on-prem environments.

However, there are many ways to reduce costs on AWS. here we have 10 tips for reducing costs on AWS. From taking advantage of the free tier, reserved instances, and monitoring resource usage with AWS Cost Explorer, these tips will help you optimize your spending on the platform.

  1. Utilize the free tier: AWS offers a free tier of service that includes a certain amount of usage for various services. Take advantage of this free usage to reduce costs.

  2. Right-size your instances: Choose the appropriate instance type for your workloads to avoid over-provisioning and paying for more resources than you need.

  3. Use reserved instances: By committing to using a certain amount of capacity for a period of time, you can save up to 75% compared to on-demand pricing.

  4. Use spot instances: Spot instances allow you to bid on spare Amazon EC2 capacity at a discounted price.

  5. Use Auto Scaling: Auto Scaling automatically increases or decreases the number of instances based on the demand for your application, helping you save money on unused capacity.

  6. Use Amazon Elastic Block Store (EBS) snapshots for backups: EBS snapshots can help you save money by allowing you to create point-in-time backups of your data, which can be used to restore data or launch new instances.

  7. Use Amazon S3 lifecycle policies: S3 lifecycle policies can help you save money by automatically moving data to lower-cost storage tiers as it ages.

  8. Use Amazon CloudWatch: CloudWatch allows you to monitor resource usage and set alarms to notify you when usage exceeds a certain threshold, so you can take action to reduce costs.

  9. Use AWS Trusted Advisor: Trusted Advisor analyzes your AWS environment and provides recommendations for cost optimization.

  10. Use AWS Cost Explorer: Cost Explorer allows you to track your usage and costs over time, so you can identify and eliminate unnecessary spending.

In conclusion, AWS offers many cost-saving options. By utilizing the free tier, right-sizing instances, using reserved and spot instances, Auto Scaling, EBS snapshots, S3 lifecycle policies, CloudWatch, Trusted Advisor, and Cost Explorer, you can effectively reduce costs on AWS.

If you need assistance with cost reduction or have any questions about how to reduce your AWS Billing, please don't hesitate to reach out for help. We will be more than happy to assist you and provide you with the information you need to make the most efficient use of your money.


Damian Gitto Olguín

Co-Founder/CTO/AWS Hero



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