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AWS' breadth of services and pricing options, offer the flexibility to effectively manage your costs and still keep the performance and capacity your business requires. With AWS, you can easily right size your services, leverage Reserved Instances, and use tools to track and monitor your resources so you can always be on top of your how much you’re spending.

AWS also makes many innovative services available at a fraction of the price of on premises solutions. Services like Amazon RDS for Aurora and Amazon Redshift help you run enterprise quality solutions at one tenth of the cost of comparable on-premises solutions.

When you use AWS you can control your spend following a simple set of steps. 1) Right-size your services to meet capacity needs at the lowest cost 2) Save when you reserve 3) Use the spot market 4) Monitor and track service usage 5) Use Cost Explorer to optimize savings.

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Learn how you can optimize costs when using AWS

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AWS also makes many innovative services available at a fraction of the price of on premises solutions. Services like Amazon RDS for Aurora and Amazon Redshift help you run enterprise quality solutions at on
AWS also makes many innovative services available at a fraction of the price of on premises solutions. Services like Amazon RDS for Aurora and Amazon Redshift help you run enterprise quality solutions at on

This video series explains the fundamental tenets of cost optimization and how they can be applied in your organizaiton.

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With AWS you can right size your services to meet exactly the capacity requirements you need without having to overprovision or compromise capacity. With AWS, you can adapt your services to address actual business needs at any time, with no penalties or incidental fees.

With AWS you can choose services that meet your existing business needs, and as your demands change, you can easily shift to the services option that meets your new requirements. With AWS you can also run multiple service options concurrently, helping you reduce costs and still maintain optimal performance.

This means you can save money by adapting your services to meet your business requirements, and not the other way around.

Learn more about EC2 instance types »

Learn more about RDS instance types »

Learn more about AWS storage classes »

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For certain services like Amazon EC2 and Amazon RDS, you can invest in reserved capacity. With Reserved Instances, you can save up to 75% over equivalent on-demand capacity. Reserved Instances are available in 3 options – All up-front (AURI), partial up-front (PURI) or no upfront payments (NURI).

When you buy Reserved Instances, the larger the upfront payment, the greater the discount. To maximize your savings, you can pay all up-front and receive the  largest discount. Partial up-front RI's offer lower discounts but give you the option to spend less up front. Lastly, you can choose to spend nothing up front and receive a smaller discount, but allowing you to free up capital to spend in other projects.

By using reserved capacity, your organization can minimize risks, more predictably manage budgets, and comply with policies that require longer-term commitments.

Learn more about EC2 Reserved Instances »

Learn more about RDS Reserved Instances »

Learn more about the Reserved Instance Marketplace »

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Amazon EC2 Spot instances allow you to bid on spare Amazon EC2 computing capacity. Since Spot instances are often available at a discount compared to On-Demand pricing, you can significantly reduce the cost of running your applications, grow your application’s compute capacity and throughput for the same budget, and enable new types of cloud computing applications.

AWS allows you to scale services for short-term usage and helping you reduce your bill. Since Spot Instances are often available at a discount compared to on-demand pricing, you can significantly reduce the cost of running your applications and lower your operating costs by up to 90% compared to on-demand instances.

Learn more about the AWS Spot Market »

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You can use Amazon CloudWatch to collect and track metrics, monitor log files, set alarms, and automatically react to changes in your AWS resources. You can also use Amazon CloudWatch to gain system-wide visibility into resource utilization, application performance, and operational health.

With Trusted Advisor you can provision your resources following best practices to improve system performance and reliability, increase security, and look for opportunities to save money. You can also turn off non-production instances and use Amazon CloudWatch and Autoscaling to match increases or reductions in demand.

Learn more about AWS CloudWatch »

Learn more about Trusted Advisor »

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AWS also offers Cost Explorer to help you monitor and control how much you spend. For example, you can tag instances, simplifying chargebacks and allowing you to link them to the right cost center. Cost Explorer also helps you forecast, map, and more clearly understand your bill.

Cost Explorer can be accessed from the AWS Management Console and you are provided with pre-configured views that show three common spend queries. These show your monthly spend broken down by AWS service, monthly spend broken down by linked account and total daily spend.  

Learn more about Cost Explorer »

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Whether you are running a single instance or dozens of individual services, you can estimate your monthly bill using AWS Simple Monthly Calculator. The calculator allows you to estimate individual or multiple prices and use templates to appraise complete solutions.

AWS Simple Monthly Calculator

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The AWS TCO calculator gives you the option to evaluate the savings from using AWS and comparing against on premises and co-location environments. The TCO calculator matches your current infrastructure to the most cost effective AWS offering. This tool takes into consideration all the costs to run a solution, including physical facilities, power and cooling, providing a realistic end-to-end comparison of your costs.

AWS TCO Calculator

The Amazon Web Services (AWS) Free Tier is designed to enable you to get hands-on experience with AWS Cloud Services. The AWS Free Tier includes services with a free tier available for 12 months following your AWS sign-up date, as well as additional service offers that do not automatically expire at the end of your 12 month AWS Free Tier term.

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