How to reduce cost of AWS infrastructure?

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AWS
  1. Use reserved instances:
  • Reserved instances provide a significant discount (up to 75%) compared to on-demand instances.
  • You can purchase a reserved instance for a one- or three-year term.
  • You can also convert your on-demand instances to reserved instances.

Steps:
  • Go to the EC2 dashboard in the AWS Management Console.
  • Under "Instances", click "Reserved Instances".
  • Click "Purchase Reserved Instances" and select the type and number of instances you want to reserve.
  • Select the term (1 or 3 years) and the payment option (all upfront, partial upfront, or no upfront).
  • Review your order and click "Purchase" to complete the process.
  1. Use auto-scaling and right-sizing:
    2.
  • Auto-scaling automatically adds or removes instances based on demand.
  • Right-sizing ensures that you are using the appropriate instance type for your workload.

Steps:
  • Go to the EC2 dashboard in the AWS Management Console.
  • Under "Auto Scaling", click "Auto Scaling Groups".
  • Click "Create Auto Scaling Group" and select the launch configuration for your instances.
  • Set the desired number of instances and the minimum and maximum number of instances.
  • Select the appropriate instance type for your workload.
  • Set up scaling policies to automatically add or remove instances based on demand.
  • Monitor the performance of your instances and adjust the instance type as needed.
  1. Use cost-efficient services:
    2.
  • Amazon S3 is a cost-effective storage option that can be used for storing data such as images, videos, and backups.
  • Amazon CloudFront is a content delivery network (CDN) that can be used to distribute content to users.

Steps:
  • Go to the S3 dashboard in the AWS Management Console.
  • Click "Create Bucket" and specify a name for the bucket.
  • Select the appropriate storage class for your data.
  • Use the S3 lifecycle rules to automatically transition data to different storage classes as it ages.
  • Go to the CloudFront dashboard in the AWS Management Console.
  • Click "Create Distribution" and select "Web" as the delivery method.
  • Specify the origin and configure the settings for your distribution.
  1. Use AWS cost optimization tools:
    2.
  • AWS Cost Explorer is a tool that helps you understand and manage your AWS costs.
  • AWS Trusted Advisor is a tool that provides recommendations on how to optimize your AWS resources.

Steps:
  • Go to the Cost Explorer dashboard in the AWS Management Console.
  • Use the "Cost and Usage" report to view your costs by service and by usage type.
  • Use the "Reservation Utilization" report to view your usage of reserved instances.
  • Go to the Trusted Advisor dashboard in the AWS Management Console.
  • Review the recommendations provided in the "Cost Optimization" category.
  1. Schedule non-production instances to shut down when not in use.

Steps:
  • Go to the EC2 dashboard in the AWS Management Console.
  • Under "Instances", select the instances that you want to schedule for shutdown.
  • Use the "Instance Settings" menu to configure the automatic stop or terminate schedule.
  • For more fine-grained control, you can also use AWS Lambda and CloudWatch Events to schedule the start and stop of your instances.
  1. Monitor and optimize the use of AWS services:
  • Use CloudWatch to monitor the usage of your resources
  • Use AWS Cost Explorer to identify any over- or under-utilized resources
  • Use AWS Trusted Advisor to get recommendations on how to optimize your resources
  1. Use AWS Savings Plans:

Steps:
  • Go to the EC2 page in the AWS Management Console
  • Select the "Savings Plans" from the navigation menu
  • Choose the plan that best suits your usage
  • Review and confirm the purchase
  1. Use free tier services available:
  • AWS offers a free tier for certain services for a certain period of time, like EC2, S3, RDS, and many more. Make sure to take advantage of the free services before subscribing to the paid version.

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