AWS EC2 Cost Optimization

In previous post we saw general recommendation for cost optimization on AWS. In this blog post, we’ll discuss some of the best practices for AWS EC2 Cost Optimization.

Amazon Elastic Compute Cloud (EC2) is a fundamental component of the AWS cloud platform, offering on-demand computing resources for a wide range of use cases. While EC2 is a powerful tool for scaling workloads, it can also be expensive if not optimized correctly.

Right-size your instances: Choosing an instance type that matches your workload requirements is the most effective way to optimize costs on AWS EC2. Overprovisioning can increase costs unnecessarily. AWS offers various instance types optimized for different workloads, such as compute-optimized, memory-optimized, and storage-optimized instances.

Use Spot instances: Spot instances are a great way to reduce EC2 costs by bidding on unused Amazon EC2 capacity. Spot instances can provide up to 90% savings over on-demand instances. However, keep in mind that AWS can terminate spot instances when the spot price exceeds your bid price. Spot instances are best suited for workloads that can handle interruptions, such as batch processing, big data, and high-performance computing.

Use Reserved instances: Reserved instances offer significant cost savings over on-demand instances, especially for long-term workloads. Reserved instances offer a commitment of one to three years and can provide up to 75% savings over on-demand instances. AWS offers three types of reserved instances: Standard, Convertible, and Scheduled. Choose the type that best fits your use case.

Use AWS Auto Scaling: AWS Auto Scaling can help optimize your EC2 costs by automatically adjusting the number of instances based on demand. You can use Auto Scaling to scale up or down based on a specific metric, such as CPU utilization, network traffic, or custom metrics. Auto Scaling can help ensure that you have the right number of instances running to meet your workload requirements while avoiding overprovisioning.

Use AWS Elastic Block Store (EBS) optimization: AWS Elastic Block Store (EBS) is a scalable block storage service for EC2 instances. To optimize your EBS costs, consider using provisioned IOPS (PIOPS) for applications that require high-performance storage and using the appropriate EBS volume type for your workload. AWS offers four EBS volume types: General Purpose SSD, Provisioned IOPS SSD, Cold HDD, and Throughput Optimized HDD. Choose the right EBS volume type for your workload to avoid overprovisioning.

Use AWS EC2 Spot Fleet: AWS EC2 Spot Fleet is a collection of Spot instances that work together to meet your desired capacity and performance requirements. EC2 Spot Fleet can help you optimize costs by automatically distributing your workload across multiple Spot instances and instance types. Spot Fleet can also help you maintain availability by automatically replacing interrupted instances with new ones.

In summary, AWS EC2 Cost Optimization involves choosing the right instance type, using Spot and Reserved instances, leveraging AWS Auto Scaling, optimizing EBS usage, and utilizing AWS EC2 Spot Fleet. It is important to monitor your usage and adjust your resources as needed to ensure that you are only paying for what you need. By following these best practices, you can optimize your EC2 costs and maximize your ROI. With the right approach, you can take full advantage of the power and flexibility of AWS EC2 while minimizing your costs.