AWS - Optimize your cloud costs on AWS

This is a summary of the recent AWS webinar
This page was written before the official slides and video were available, however, slides and video are now available as below:

Official slides -

1.1  AWS Cloud Financial Management (CFM)

Refers to a suite of tools, practices and principles that help businesses manage their cloud costs and optimize cloud usage.
1. Cost Allocation and Visibility
This pillar emphasizes the importance of understanding where cloud costs are coming from. It involves using cost allocation tags, cost categories, and organizational units to categorize spending. It ensures that you can break down costs by service, department, project, or other relevant factors to gain a clear understanding of where your money is going.
2. Cost Control and Governance
This pillar focuses on establishing policies, controls, and best practices to manage and limit cloud costs. It includes setting budgets, establishing spending limits, and using governance tools like AWS Organizations and Control Tower to enforce compliance. Cost control also involves managing service quotas and permissions to prevent unauthorized or excessive usage.
3. Cost Optimization and Efficiency
The goal of this pillar is to identify opportunities to reduce costs and improve efficiency. It involves rightsizing resources, utilizing Reserved Instances or Savings Plans, optimizing storage, and applying best practices for compute and network resource management. Tools like AWS Compute Optimizer and Trusted Advisor offer recommendations for cost savings and resource efficiency.
4. Cost Planning and Forecasting
This pillar involves budgeting and forecasting to anticipate future cloud spending. By analyzing past usage trends and using tools like AWS Cost Explorer and AWS Budgets, you can predict future costs and set budgets accordingly. This pillar helps organizations prepare for future costs and allocate resources accordingly.
5. Financial Accountability and Chargeback
This pillar focuses on assigning financial responsibility to specific teams, projects, or departments based on their cloud usage. With proper cost allocation, organizations can implement chargeback or showback models to create financial accountability. This can lead to better cost management and encourage teams to optimize their cloud usage.

AWS Tools to help customers with Cost Optimization

AWS Cost Explorer

AWS Compute Optimizer
(Equivalent in other CSP Azure Advisor; GCP VM Recommender)

Spot Advisor

AWS Well-Architected Cost Labs
(Excellent resource for Architects visiting the AWS five pillars framework)

Cost/Cloud-Intelligence Dashboard

Cloud Financial Management

2. Pillars of Cost Optimization

2.1 Pillar 1 - Right Sizing

+ Cheapest instance + best performance + monitor usage



2.2 Pillar 2 - Increase Elasticity


2.3 Pillar 3 - Leveraging the right pricing model



2.4 Pillar 4 - Leveraging the right storage class

Amazon Elastic Block Storage
Amazon Simple Storage Service



2.5 Pillar 5 - Mechanisms for costs optimization


3. Cost Optimization Best Practices

3.1 Customer Cost Journey






3.2 Way to Optimize and Save


3.3 Other Useful References on optimizing AWS costs

[9 ways to Reduce your AWS Bill]



[AWS Cost Management]

[AWS Cost Optimization]

Want to print your doc?
This is not the way.
Try clicking the ⋯ next to your doc name or using a keyboard shortcut (
) instead.