AWS Cost Optimisation

 Best practices cost optimisation

1. Rightsizing EC2 Instance :

The purpose of rightsizing is to match instance sizes to their workloads. You might
start with a small EC2 instance, realize the application you are running is starting to
max out that server, and then you can give that instance more memory and more
CPU. Which is what we call vertically scaling an instance. 
2. Scheduling on/off times:
the AWS Instance Scheduler, a new and improved scheduling solution that enables
customers to schedule Amazon EC2 instances, Amazon Relational Database Service
(Amazon RDS) instances, and more.
3. Purchasing Reserved Instances and Savings Plans
Purchasing Reserved Instances is an easy way to reduce AWS costs
4. Delete unattached EBS volumes
With EBS storage youp ay for what you provision, and procing depends on the
amount of data stored and the region where the instance is deployed.

5. Delete obsolete snapshots

Snapshots are an efficient way to back up data on an EBS volume to an S3 storage
bucket because they only back up data that’s changed since the last snapshot to
prevent duplications in the S3 bucket.

6. Release unattached Elastic IP addresses

Elastic IP addresses are public IPv4 addresses from Amazon’s pool of IP addresses
that are allocated to an instance so it can be reached via the Internet, five Elastic IP
addresses are allowed per account because Amazon doesn´t have an unlimited pool
of IP addresses
7. Upgrade instances to the latest generation
When Amazon Web Services releases a new generation of instances, they tend to
have improved performance and functionality compared to their predecessors. 

8. Purchase reserved nodes for Redshift and ElastiCache Service

Reserved Nodes can be purchased for Redshift, ElasticCache, Redis, and
Memcached Services for 1-year or 3-year terms, with the option of paying the full
amount upfront or partially upfront, or paying monthly.
 9. Terminate zombie assets
The term “zombie assets” is most often used to describe any unused asset
contributing to the cost of operating in the AWS Cloud.
10. Move infrequently-accessed data to lower cost tiers
Amazon Web Services offers six tiers of storage at different price points.
Amazon Web Services currently offers six tiers of storage at different price points.
Determining which storage tier is most suitable for data will depend on factors such
as how often data is accessed and how quickly a business would need to retrieve
data in the event of a disaster.
 The six tiers of storage are:

 S3 Standard
 S3 Intelligent Tiering
 S3 Infrequent Access
 S3 Infrequent Access (Single Zone)
 S3 Glacier
 S3 Deep Archive Glacier

 EC2 on demand :
are ideal for short-term, irregular workloads that cannot be interrupted. No upfront
costs or minimum contracts apply. The instances run continuously until you stop
them, and you pay for only the compute time you use.

 EC2 spot instance :

A Spot Instance is an instance that uses spare EC2 capacity that is available for less
than the On-Demand price.
they use unused Amazon EC2 computing capacity and offer you cost savings at up
to 90% off of On-Demand prices. when choosing Spot Instances, make sure your
workloads can tolerate being interrupted. 

 EC2 reserved instances :

These are suited for steady-state workloads or ones with predictable usage and offer
you up to a 75% discount versus On-Demand pricing.

 EC2 saving plan :

Savings Plans is a flexible pricing model offering lower prices compared to On-
Demand pricing, in exchange for a specific usage commitment (measured in $/hour)
for a one or three-year period.
AWS offers three types of Savings Plans – Compute Savings Plans, EC2 Instance
Savings Plans, and Amazon SageMaker Savings Plans.

 Savings plan :  
Amazon EC2 Savings Plans enable you to reduce your compute costs by committing
to a consistent amount of compute usage for a 1-year or 3-year term.
This term commitment results in savings of up to 66% over On-Demand costs.
- Compute Savings Plans provide the most flexibility and help to reduce your costs
by up to 66%. These plans automatically apply to EC2 instance usage.
- EC2 Instance Savings Plans provide the lowest prices, offering savings up to 72%
in exchange for commitment to usage of individual instance families in a Region.

 Reserved Instances vs savings plan:

- Reservd instances :
- Discounted pricing (compared ton On-demand ) in exchange for
commitment to a utilization level for 1 ou 3 years
- Tow types : Standard and convertibale

- Savings Plan
- AWS introduced Savings plan in 2019 to simplify long-tearm purchase
commitments
- Discounted pricing (compared ton On-demand ) in exchange for
commitments to a dollar spend for 1 to 3 year
Tow types : EC2 Savings Plan and compute Savings Plan.

- Advantages of Savings Plan over Reserved Instances

- Discounts are automaticlly applied, No management overhead.
- Reginal Flexibility – Compute SPs can be applied to any region
- Service Flexibility – Compute SPs can be shared amongst all compute services
EC2, EKS,Lambda …

- Advantages Reserved Instances over Savings Plan

- Standard RIs can be sold in marketplace
- RIs can be purchased for RDS , Redshift, Elasticche.
- Capacity rservations can b made with Zonal RIs
- For SUSE EC2 instances, much higher discounts are avalble via RIs vs SPs.

Unit Reserved Instances Savings Plan

Types Standard RIs and convertible EC2 Savings Plan and compute
RIs Savings Plan.
Commitment One year ro three years One year ro three years

Paymen All upfront,partial upfront,and All upfront,partial upfront,and no

no upfront upfront