The document discusses strategies for AWS cost optimization, focusing on resource management, scheduling, and choosing the right storage and compute options to reduce costs. It highlights tools like AWS Compute Optimizer and Cost Explorer, and emphasizes the importance of monitoring resource usage through AWS CloudWatch. The speaker, Liudmyla Dziubynska, presents various architectural recommendations and pricing comparisons between AWS services to enable effective cost management.

1. AWS Cost
Optimization
H O W T O R E D U C E A W S C O S T S ?

2. About Speaker
Liudmyla Dziubynska
CTO at Zenbit Tech
Expert in full-stack development and AWS
Proficient in modern technologies including ReactJS, NodeJS, GraphQL,
TypeScript
In-depth knowledge of cloud cost optimization techniques and strategies
Proven experience in cloud migration and deployment
Skilled in cloud security and data management
Familiar with cloud monitoring and analytics tools, such as Amazon CloudWatch
Knowledge of cloud resource management tools, such as AWS Auto Scaling or
Kubernetes
Experienced with cloud-based storage solutions, such as Amazon S3 or Google
Cloud Storage

3. Prepare before moving
Clean up unneeded resources
Regular or infrequent access s3 Scheduling
Reserved instances
Delete unused resources
Make resources in the way they
should be before move them into
the cloud
Whether you utilize S3, they offer a tool
that checks if you should use it regularly
or frequently
reserved instances get a 72% discount
compared to "on demand," and
prepayment increases the savings.
Here is an overview of the level of cost optimization
that depends on impact and complexity. Let me
give you some ideas where to start
turn on and off resources base on
schedule (AWS instance scheduler) for
example dev env when team is not
working
AWS cost
optimization options

4. Example of S3 or frequent access
Example: You retrieve 1% (100GB) of 10TB of seldom visited files per month and serve 100K GET requests.
Compare Standard, Standard Infrequent Access, and One Zone Infrequent Access prices below:

5. A few architectural areas to focus
on - Networking
From a cost optimization point better to
create as many instances as needed inside
one region
The same rule works for ec2 as well as for RDS
instances, the most common use case: is to
create a read replica for your Database

6. 1. Networking
Try to make data calculations inside AWS, to
pay less for outbound traffic
2d option - data transfer will be free, and
only 50kb result will be charged

7. 2. S3 bucket has its own calculation:
Use cloud front above the S3 is cheaper then
use s3 directly
Amazon S3 Transfer Acceleration can speed up content
transfers to and from Amazon S3 by as much as 50-
500% for long-distance transfer of larger objects
Faster transfer times (50 to 500% better)
Additional cost on top of Data Transfer
Pricing: +$0.04 to $0.08 per GB
(slightly cheaper than S3)
Caching capability (lower latency)
Reduce costs associated with S3 Requests
Pricing (7x cheaper with CloudFront)
S3 ingress: free
S3 to Internet: $0.09 per GB
S3 Transfer Acceleration:
S3 to CloudFront: $0.00 per GB
CloudFront to Internet: $0.085 per GB
S3 Cross Region Replication: $0.02 per GB

8. 10.0.0/0
10.0.0.0/16
10.0.0.0/16
Destination
Destination
pl-id for Amazon
S3
igw-id
vpce-id
Local
Local
Target
Target
3. NAT Gateway vs Gateway VPC Endpoint
Subnet 1 route table
Subnet 2 route table

9. Re-architecting and designing for cost
01
02
04
06
03
05
08
07
Spot EC2
Static Web Hosting on S3
Deliver Content with AWS
CloudFront and Catching
DynamoDB on-demand +
Auto Scaling
Serverless & AWS Lambda
ELB to Application Load Balancer
Containerization
Running resources cheaply
and analyzing redundancy

10. Example in price between regions
1 ELB sends traffic to 5 c5.large instances in
the same Availability Zone that are running
Amazon Linux.
Each instance has 20GB of EBS SSD storage,
and each instance receives 100GB/month
from the ELB and sends 1TB/month back to
the ELB - therefore the ELB processes
5.1TB/month.

11. N. Virginia is
typically the
cheapest region
It costs 52% more to deploy this
infrastructure in Sao Paulo compared to N.
Virginia.
Not all regions in Europe cost the
same. Stockholm would cost 11%
less compared to Paris.
Example in price between regions

12. 01
02
Track pricing
changes as your
product grows
Need to track how the price changes when your product
grows or more services are used
Start using the Cost Explorer tool on a
monthly or quarterly basis. try to
concentrate on the top 3|5 expenses and
let your team investigate them deeper
Let team access to see the cost that was
spent on the services, and set up a
responsible person for cost management

13. 03 Use Compute optimizer

14. 04
AWS Budgets - Set custom budgets that trigger alerts when cost or usage exceeds or are only
forecasted to exceed a budgeted amount. Budgets can be set based on tags and accounts as well
as resource types.

15. 05
One of the keys to reducing cloud bills is to have visibility
into services. CloudWatch is an AWS tool for collecting
and tracking metrics, monitoring log files, creating of
resource alarms, and setting an automatic reaction to
changes in AWS resources.
Example of usage: You can set up an alarm with a
notification when an EC2 CPU utilization goes below 20%
and take action after investigating why the instance is
underutilized.
Amazon CloudWatch

16. Join our Cloud Solutions Hub LinkedIn Group!
Contact us
We will be glad to answer on any questions!
Email: liudmyla.dziubynska@zenbit.tech
Our LinkedIn Cloud Solutions Hub group:
https://www.linkedin.com/groups/12778781/
LinkedIn: https://www.linkedin.com/in/liudmyla-dziubynska/
Liudmyla Dziubynska
CTO at Zenbit Tech