Cost Optimization

The Challenge

IT Infrastructure is a challenge for any company and especially companies that are not large enough to implement their own, full-scale data centers.

Company Previously used on-premises data centers to host its web properties, all of which had different technologies and processes. But company facing problem regarding COST of resources. The IT organization wanted to use THE AMAZON CLOUD for Cost Optimization and better performance



Company’s priorities in choosing the AWS Cloud is cost optimization.

In AWS the Cost Optimization pillar helps you avoid or eliminate unnecessary costs or suboptimal resources and use the savings on differentiated benefits for your business. A cost-optimized system allows company to pay the best price possible while still achieving business objectives and meeting or exceeding requirements




For the company’s cost optimization, we did following things in compute


1 – Pricing Model

Company purchase Reserved Instance and Spot Instance

Cost optimization can only be successful if you are able to match the requirements of company’s application or workload with the most appropriate instance type

After you have settled on an instance type, the company have the option of purchasing a Reserved Instance. This is an upfront commitment to purchase capacity in a particular AWS region, which will dramatically reduce your running costs.

After the first instance is shut down, the Reserved Instance hourly rate will apply to the after-hours instance, thus maximizing your overall cost efficiency

Scheduled Instances are a good choice for workloads that do not run continuously, but do run on a regular schedule.


Spot Instances

Spot Instances allow our customers to bid on spare Amazon EC2 computing

capacity. Because Spot Instances are often available at a discount compared to On-Demand pricing, you can significantly reduce the cost of running your applications and grow your application’s compute capacity and throughput.


2 – Auto Scaling

Auto Scaling allows you to scale your Amazon EC2 capacity up or down

automatically according to conditions you define.

Auto Scaling optimizes efficiency and costs by increasing or reducing the number of instances as demand for resources change.

If your workload runs during business hours (9:00 AM. – 5:00 PM.), you can

configure Auto Scaling to launch instances appropriate for the predicted load.

After business hours, Auto Scaling can then reduce the number of instances, minimizing expenditure on the per-hour running costs.


Amazon ECS

Amazon EC2 Container Service (Amazon ECS) provides a platform for EC2

instances to host Docker containers. This increases the level of granularity in your workloads and the efficiency of your EC2 instances


3 -Turn off Unused Resources

For the Cost Optimization, most requirement step is turn off unused resources. If Instance is not required then it must be in stop state or delete that instance


4- Periodic Review

Review the whole account periodically and if any unused resources are found delete that resources and if any changes are required then do that changes.


Aarti Parikh
Solution Architect,
Electromech Corporation.

Leave a Reply

Your email address will not be published. Required fields are marked *