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AWS is the backbone of the cloud industry today. It is indispensable for a company, big or small. But that is also what makes it complicated. Once it is understood how much one has to rely on AWS, the expense that comes with it is usually unaccounted for. Every payment window will have one swamped with no end in sight.

But in reality, it can be managed with a bit of insight. A lot of companies end up wasting their funds on cloud resources that they rarely use. In a nutshell, use AWS but do not get carried away by it. This can be best explained through an AWS cost optimization setup.

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Since AWS employs a strategy that asks one to pay for each option, it is only wise to install an application that could track billing. There are plenty of services online, like Cloudfix by Devgraph, that help with cost accounting in AWS. This enables one to understand where they are losing money and re-strategize. Here are some tips to reduce AWS costs.

1. EC2 is a service offered in AWS. It helps in functioning multiple applications for companies subscribed to the cloud platform. EC2 comes in different shapes and sizes that fit every user’s work needs. This is where everyone’s expenses go off the rails. 

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Picking the correct type of EC2 instance will narrow down the rates. Since EC2 instances are charged per hour, cash gets flushed down with a server jam. Utilize Google Analytics to figure out when the website sees the most and least traffic. This is the first and easiest step in AWS cost optimization. The budgetary cuts achieved via this are phenomenal.

2. Do not forget to autoscale everything. Autoscaling is a process that adds or chucks EC2 instances as and when they are required. There are instructions manuals online that help in setting up autoscaling. 

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A couple of things to keep in mind before autoscaling are checking the servers, availability zones, and metrics. Find out which all are needed and what can optimize performance. Newbies can familiarise themselves with EC2 using the default VPC. 

There are additional autoscaling mechanisms for new consoles. It is ok to build a straightforward autoscaling infrastructure. With proper tools, it will overcompensate in terms of efficiency.

3. AWS cost optimization goes hand in hand with storage optimization. For the uninitiated, just like everything else in AWS, the storage options are quite like how a kid feels in a candy store. 

The range of storage services includes object storage, file storage, block storage, backup, data transfer, edge computing, and storage. The IT mechanism of a company will be centralized based on what goes in the storage. It goes without saying that unhinged spending on storage is ill-advised.

Elastic file systems are the priciest, and Glacier is the least on the price range for storage services. Amazon S3 Glacier and S3 Glacier Deep Archive are well known for their cost-effectiveness. Since retrieval and deletion are separately charged, it is worth noting that the storage costs per month are cheap for Glacier. It is perfect for storing data for the long term.

4. Some programs have to deal with vast and complicated data. It is constantly shuffled around, and a fee is levied on it. Charging for each data transfer comes with a heavy bill. This is better addressed using Virtual Private Cloud (VPS). Used by many professionals, a significant perk of VPS is it can function without accessing the internet. 

It is also foolproof since data will be automatically backed up during a crisis. It guarantees the safety of having the website up and running with no threats while seeking active public and private engagement. AWS Cost optimization is made easy using VPS for intensive technological set-up.

5. Servers are like ants; they make the most of queueing networks. This is, of course, not free of costs. Be it resizing an image or processing audio, or exporting a video, all of which function with servers. 

Enter the AWS Lambda. Since it is a serverless program, it can run practically any kind of code with no monitoring. Enter the code in a zip file or compressed image, and it does its job. It can also scale everything down, so the costs only amount to the milliseconds when the code is run.

These are some of the common errors committed when engaged with AWS. With some technical-know-how, AWS can start acting like a tool it is instead of a cash cow it is usually perceived to be.

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