Edition 5e: AWS Well-Architected Framework - Cost Optimization Pillar

Cost Optimization

??????????? The Cost Optimization pillar encompasses the capability to operate systems in order to provide business value at the most economical price point.

Design Principles

??????????? The cloud has five design concepts specifically aimed at optimizing costs:

·?????? Implement Cloud Financial Management: It is essential for your firm to provide time and money to develop expertise in this emerging field of technology and use management. To become a cost-efficient firm, you must develop your competence by enhancing your knowledge, implementing programs, allocating resources, and establishing efficient procedures, just as you would for your Security or Operational Excellence.

·?????? Adopt a consumption model: Only pay for the specific computer resources you need and adjust use according to business needs, without relying on complex predictions.

·?????? Measure overall efficiency: Evaluate the productivity of the task and the expenses related to its execution. Utilize this metric to determine the benefits derived from boosting production and minimizing expenses.

·?????? Stop spending money on undifferentiated heavy lifting: AWS is responsible for the laborious tasks involved in data center operations, such as installing, organizing, and supplying electricity to servers. Additionally, it relieves the responsibility of overseeing operating systems and applications by using managed services.

·?????? Analyze and attribute expenditure: The cloud enables precise identification of system utilization and cost, enabling transparent allocation of IT expenditures to specific task owners. This aids in quantifying return on investment (ROI) and provides task owners with a chance to manage their resources and save expenses.

Best Practices

??????????? The Cost Optimization pillar encompasses five domains in which we must establish and identify best practices.

·?????? Practice Cloud Financial Management

·?????? Expenditure and usage awareness

·?????? Cost-effective resources

·?????? Manage demand and supply resources

·?????? Optimize over time

Practice Cloud Financial Management

??????????? The use of cloud technology enables technology teams to develop more quickly by reducing the time required for approval, procurement, and infrastructure deployment processes. In order to achieve corporate value and financial success, it is necessary to adopt a novel approach to financial management using cloud technology. This technique, known as Cloud Financial Management, enhances the capabilities of your firm by applying knowledge-building initiatives, programs, resources, and procedures across the whole organization.

Cloud Financial Management Implementation

??????????? By implementing Cloud Financial Management, firms may achieve business value and financial success by efficiently managing their costs, use, and scalability on the AWS platform.

Expenditure and Usage Awareness

??????????? The enhanced adaptability and dexterity offered by cloud computing fosters creativity and rapid progress in the development and implementation processes. It reduces the need for manual tasks and time involved in setting up on-site infrastructure, such as determining hardware requirements, negotiating prices, handling purchase orders, scheduling deliveries, and deploying the resources. Nevertheless, the simplicity of operation and almost boundless capacity that may be used at any time necessitates a fresh perspective on financial outlays.

Govern Usage

??????????? Develop and implement rules and methods to ensure that necessary expenses are expended while achieving goals. By implementing a system of checks and balances, you can foster innovation while avoiding excessive expenditures.

Monitor Usage and Cost

??????????? Develop and implement rules and processes to effectively manage and distribute your expenditures. This enables you to assess and enhance the cost effectiveness of this task.

Decommission Resources

??????????? Enforce change control and manage resources across the whole project lifecycle. This enables the deactivation of unnecessary resources in order to minimize inefficiency.

Cost-Effective Resources

??????????? Optimizing the selection of instances and resources for your workload is crucial for achieving cost reductions. For instance, a reporting procedure may need five hours to execute on a smaller server, but it would just take one hour on a bigger server that costs twice as much. Both servers provide identical results, however, the smaller server accumulates more expenses in the long run.

Evaluate Cost

??????????? Amazon EC2, Amazon EBS, and Amazon S3 are fundamental components of the AWS platform. Managed services, such as Amazon RDS and Amazon DynamoDB, are AWS services that operate at a higher level, namely the application level. By carefully choosing the suitable components and managed services, you may enhance the efficiency of this task in terms of expenses. By using managed services, you have the ability to significantly decrease or eliminate a large portion of your administrative and operational burdens, allowing you to focus on developing applications and engaging in business-related tasks.

Meet Cost Targets

??????????? Ensure that you choose the suitable resource size and quantity for the given activity. To reduce waste, you should choose the most economical kind, size, and quantity.

Pricing Models Usage

??????????? Utilize the price strategy that best suits your available resources in order to decrease costs.

Data Transfer Charges

??????????? Ensure that you carefully strategize and oversee the expenses associated with data transmission, allowing you to make informed choices about the design and structure of your system in order to save costs. An incremental design modification might significantly decrease your long-term operating expenses.

Manage Demand and Supply Resources

??????????? By transitioning to the cloud, you are only charged for the specific resources and services that you need. By providing resources that align with the workload demand when they are required, you may reduce the need for expensive and inefficient over provisioning. Additionally, you have the option to adjust the demand by implementing a throttle, buffer, or queue. These mechanisms help to stabilize the demand and allow for more efficient resource use, hence reducing costs. Alternatively, you may choose to process the demand at a later time using a batch service.

??????????? To ensure optimal utilization and cost-effectiveness, it is important to check that the resources you pay for are fully used and to prevent instances that are severely underutilized in a workload with balanced expenditure and performance. Any deviation from the optimal usage statistic might negatively affect your company, leading to increased operational expenses owing to decreased performance from over-utilization or wasted AWS expenditures from over-provisioning.

Optimize Over Time

??????????? When AWS introduces new services and capabilities, it is advisable to reassess your current architectural choices to ensure that they remain the most cost-efficient. By incorporating new features or resource kinds, you may gradually enhance the efficiency of your job, while reducing the amount of effort needed to accomplish the modification. This ensures ongoing enhancements in efficiency throughout time, as long as you stay up to date with the latest technologies to minimize operational expenses.

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