In recent times, businesses leveraging Amazon Web Services (AWS) have experienced a notable increase in operational costs. This rise can be attributed to various factors, such as the scaling of resources that do not optimize cost efficiency, and the underutilisation of various AWS pricing models that could otherwise save significant amounts. To help clients navigate this challenging landscape, we outline several effective strategies to control and reduce AWS expenses effectively.
- Optimize EC2 Instances
Many organizations pay for EC2 capacity that they don’t fully utilize. By identifying underutilized EC2 instances using tools like AWS Cost Explorer and Rightsizing Recommendations, companies can stop or downsize these instances, potentially leading to substantial cost savings.
- Leverage Spot Instances
Spot Instances allow users to purchase unused EC2 capacity at significantly lower rates, which can lead to cost reductions of up to 90% compared to on-demand prices. Spot Instances are ideal for flexible, interruption-tolerant workloads such as batch processing, web services, and high-performance computing. At NimbusStack, in collaboration with our partners, we provide AI-based spot instance management. By harnessing advanced algorithms, we minimize interruptions and maximize workload efficiency, empowering businesses to leverage spot instances with confidence.
- Implement Auto Scaling
Auto Scaling helps ensure that you have the appropriate number of EC2 instances available to handle the load for your application. It dynamically adjusts the capacity to maintain steady, predictable performance at the lowest possible cost.
- Use Savings Plans and Reserved Instances
AWS offers Savings Plans and Reserved Instances to help users save up to 72% compared to on-demand pricing. These options require a commitment to a certain level of usage for a period of one or three years, offering a reduced rate in exchange for this commitment. With NimbusStack you can optimize your reserved commitment portfolio automatically without the 1 or 3 year commitment.
- Regularly Review and Manage Storage
Unused Elastic Block Store (EBS) volumes and old snapshots can accumulate unnecessary costs. Regularly reviewing and deleting unattached EBS volumes and outdated snapshots is an effective cost-saving measure.
- Optimize Data Transfer
Assessing and optimizing the data transfer methods, such as integrating Amazon CloudFront for content delivery, can reduce costs associated with data transfer out of EC2 to the internet, which often forms a significant part of AWS bills. AWS is sneaky when it comes to network charges. We help you architect your applications in a cost optimal fashion without compromising on high-availability and scalability.
- Embrace Cloud Cost Management Tools
Tools like NetApp and VMWare provide automated cost reports, anomaly detection, and deep insights into cost drivers, helping businesses understand and manage their cloud spending more effectively.
To effectively manage and reduce AWS costs in 2024, businesses must focus on optimizing EC2 instances, utilizing cost-saving options like Spot Instances and Reserved Instances, leveraging Auto Scaling, and diligently managing storage and data transfer. By employing cloud cost management tools, companies can gain deeper insights and maintain control over their cloud expenses. Implementing these strategies will not only enhance operational efficiency but also secure substantial savings.
Ready to take control of your AWS costs? Contact NimbusStack today to discover how our expert solutions can streamline your cloud management and reduce expenses.
