AWS

Lowering AWS EC2 Costs: Starts with Rightsizing Your Instances

Walter Derezinski

Nov 14, 2023 — 1 min read

Effective Cloud Cost Management: Rightsize Your Instances

The initial step in reducing your AWS EC2 compute costs involves rightsizing your instances. Oversized instances lead to resource waste and inflated expenses, while undersized ones can hamper performance. Discovering the perfect fit can result in substantial savings.

When you have too much memory or CPU, it translates to unnecessary costs.

AWS provides a range of native tools to assist with rightsizing, and I recommend starting with two key tools:

AWS Cost Explorer: This tool offers integrated features for analyzing your expenses, including cost and usage reports. It provides valuable insights into instances that are either underutilized or oversized. Additionally, it takes into account the potential impact on your AWS bill by factoring in Reserved Instances (RIs) and Savings Plans.

AWS Compute Optimizer: Compute Optimizer is a valuable resource for recommendations. It not only suggests downsizing options within or across instance families but also offers upsizing recommendations to eliminate performance bottlenecks. Moreover, it provides guidance for EC2 instances that are part of an Auto Scaling group.

By leveraging these AWS native tools, you can make informed decisions regarding instance rightsizing and drive cost optimization while maintaining performance. It's a critical step in achieving substantial savings and efficiency.

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