AWS Cloud Services and Infrastructure – Cost Optimization Deep Dive
AWS Training Architect I in Content
What is Cost Optimization, and how can you optimize your AWS applications and environments for cost-effectiveness? Cost Optimization is a challenge for everyone.
AWS has many cost-effective compute services and pricing options that give you the ability to effectively manage your costs while still maintaining high performance and complete capacity needs to meet all of your business requirements.
In this course, we are going to deep dive into Cost Optimization and learn about Right-Sizing our services, cost savings of Reserved Instances, and cost savings of the spot market. We also go over how to monitor, track, and analyze our usage now and for the future for continual cost optimization with AWS tools and services to keep optimizing your environment over time along with how to avoid common mistakes.
We will also learn all about AWS Well-Architected Framework, how to structure your AWS account with AWS Organizations and billing, how to design your environment in a cost-conscious way to make sure your architectures match supply and demand and how to use different design patterns to reduces expenses, how to optimize your storage, and what actions you can take now to get started.
If you love Cost Optimization, follow this course with a deep dive into cost-effectively optimizing your AWS accounts.
Let's get started!!
Hi, and welcome to the deep dive course on AWS Cost Optimization! Throughout this course, we will discover what Cost Optimization is and how you can optimize your AWS applications and environments for cost-effectiveness. It is important to know that Cost Optimization is a challenge for everyone. Still, AWS has many cost-effective compute services and pricing options that give you the ability to manage your costs while effectively maintaining high performance, and the capacity needs to meet your business requirements.
How to Use the Course Interactive Diagram
Before we get too far along in the course, let's take a few minutes to review and learn how to navigate our interactive diagram. I was, and I still am, a Linux Academy student, and I know how interactive diagrams can help enhance learning, allowing you to see things piece-by-piece and how they work together. I will show you what I mean throughout the course, but in each lesson, you will notice we have a split-screen. On the right-hand side, we have our interactive diagram, and on the left-hand side, we have AWS documentation, AWS tools, or the AWS Management Console. The interactive diagram will be helpful to you as we make our way through this course, plus it will have links along the way that link directly to AWS documentation, AWS Tools, etc. There are also Back and Next buttons that you can use to move through the course at your own pace. Some sections also have multiple layers, and you will see us navigate through those layers in the course. You will be able to navigate layers yourself by selecting sections with blue lettering, and that will be your clue to click on the layer for more details. If your page sizing is off, you can zoom the page to better fit your screen in the bottom right-hand corner of the lucid chart.
What Is Cost Optimization?
Cost Optimization Essentials
In this video, we will go over the AWS Cost Optimization essentials that we will be covering in a deep dive throughout this course. So, what is Cost Optimization? Cost Optimization in AWS optimizes your environment for the most cost-effective infrastructure possible. Throughout this course, we discuss how Cost Optimization in AWS brings cost savings, increases staff productivity, operational resilience, business agility, elasticity, visibility with tags, visibility with cost allocation, and establishes, evaluates, and enforce your account structure. Cost Optimization also increases the measurement of platform usage, creates a culture of accountability with a CCoE, and takes advantage of further cost savings with AWS' CO Services, tools, resources, pillars, and best practices.
So, our big question is, why AWS? In this video, we discuss why AWS is a cost-effective solution for your environment and also how to re-design your business and operational process to receive the most benefits from Cost Optimization. We also address how to use AWS as cost-effectively as possible.
What Is TCO?
In this video, we will learn what Total Cost of Ownership is, how it can reduce your total cost of ownership in AWS, and how cost savings will significantly improve as you optimize your Total Cost Of Ownership in AWS.
Lowering Your TCO with AWS
In this video, we discuss how with AWS cloud economics, we can lower our TCO in AWS, how AWS helps us reduce our TCO, and how AWS allows us to only pay for what we use.
The 5 Pillars of Cost Optimization
In this video, we will learn about the 5 Pillars of the Cost Optimization Pillar of the AWS Well-Architected Framework. We review why it is important to use the AWS Well-Architected Framework in your designs, and how the AWS Well-Architected Framework will provide cost optimization throughout your environment.
Cost Optimization Best Practices
In this video, we will look at best practices for the AWS Well-Architected Cost Optimization Pillar and how to use Cost Optimization best practices and design principles to optimize your environment for cost savings.
The AWS Well-Architected Framework
Introduction to the AWS Well-Architected Framework
In this video, we will do a quick overview of the AWS Well-Architected Framework. We will discuss what the AWS Well-Architected Framework is, and how to use the AWS best practices and core strategies for architecting systems in the cloud. By the end, we will understand the best practices for designing and operating reliable, secure, efficient, and cost-savings systems in the cloud and why AWS believes if you have a well-architected system, then it will significantly increase the likelihood of your success.
The 5 Pillars of the AWS Well-Architected Framework
In this video, we will learn all about the AWS Well-Architected Framework's 5 Pillars and their design principles. We have already discussed the fifth pillar, Cost Optimization, in our first section, but the AWS Well-Architected Framework has four other pillars that we need to cover. We will define what the AWS Well-Architected Framework is, the AWS Well-Architected Framework's 5 pillars, and how the pillars help build stable and efficient systems and environments while allowing more time to focus on functional requirements to build a solid system that delivers on your expectations and requirements.
AWS Well-Architected Framework Best Practices
In this video, we will cover all 5 pillars of the AWS Well-Architected Framework and understand how to build stable, efficient environments that meet our requirements and expectations. AWS provides us with a Well-Architected Framework to help us optimize our AWS environments. In the last video, we looked at each pillar and its design principles. Now, we need to look at the AWS Best Practices for each pillar of the AWS Well-Architected Framework and how they can provide cost savings and optimization.
AWS Account Structure Considerations
Account Structure in AWS
In this video, we will begin learning about how to set up our AWS accounts for cost optimization. We will go over how to set up and organize our AWS accounts for cost optimization and why having an Account Structure is so important and valuable.
AWS Cost Explorer
In this video, we will look at AWS Cost Explorer and ways it can help us optimize our AWS accounts. Cost Explorer enables you to visualize, understand, and manage your costs and usage over time. We will cover how easy it is to get started with a set of default reports that provide insights into your cost drivers and usage trends, how you can create custom reports that analyze cost and data usage at a high level, and how Cost Explorer allows us to deep dive into our cost and usage data to identify trends, cost drivers, and detect anomalies.
AWS Billing and Cost Management
In this video, we will have a quick introduction to the AWS Billing and Cost Management Service dashboard and the AWS Free Tier. We will discuss how the AWS Billing and Cost Management service/console provides features that you can use to view your costs and usage, such as seeing the status of your month-to-date AWS expenditure, pinpointing the services that account for the majority of your overall expenditure, helping you understand at a high level how your costs are trending, and how to access a number of other cost management products that can help you dig deeper into your AWS costs and usage.
Viewing Cost and Usage Invoices
In this video, we will look at how to view your monthly bill, past bills, how to read your billing reports and cost and usage report, and why it is best practice to keep an eye on your costs and check into Cost Explorer often to make sure there aren't any surprise costs for your AWS account.
In this video, we will take a dive into Amazon QuickSight, what it is, how we can use it to further our cost optimization, why we need it, and how it can help us optimize the costs on our AWS account.
AWS Reporting and Cost Optimization Tools
Introduction to AWS Provisioning Tools, Services, and Resources
In this video, we introduce AWS tools, services, and resources that we can use for Cost Optimization. AWS offers lots of opportunities for increasing agility, faster innovation, and lower cost of ownership. The organizations that have been successful in moving from an on-premise environment to AWS are those that quickly established a well-defined strategy for optimizing their architecture in AWS. Moving from an on-premise environment like a data center with upfront investments to the consumption-based model of AWS requires changes to mindsets, processes, and tools to ensure you are managing your costs. To help and assist with this transition and this new way of architecting, AWS helps you track, report, and analyze costs over time with provided reporting along with cost optimization resources and tools. By the end of this video, you will know which tools can help you track, report, and analyze costs over time.
What Is Right-Sizing?
In this video, we will learn about Right-Sizing. Right-sizing is key for optimizing your AWS costs, and as we have said, often times when organizations lift and shift their environments to AWS, they prioritize speed and performance over cost, which often leads to over-sized instances and resources and lots of unused resources and lots of wasted spending. If possible, it is always best practice to right-size before a migration and take the time to understand exactly what your organization's usage needs are, the patterns of usage, and think about how you can take advantage of the elasticity in AWS to respond to your usage. We will also cover how EC2 Right-Sizing works, best practice, and tips.
Reserved Instance Pricing
In this video, we will cover reserved instance pricing and available pricing options. When you launch an instance, the instance type that you choose determines the hardware of the host computer used for your instance, and EC2 provides each instance with a consistent and predictable amount of CPU, but there are different pricing options. We will cover the multiple different pricing options and the benefits and cost savings of using reserved instances.
Reserved Capacity Pricing
In this video, we will discuss options to leverage the right pricing model and how reserved capacity can add additional savings. So far, we have seen that there are many options to help lower your AWS costs and cost optimize your environment. It is important to right-size your services, which means meeting the exact capacity requirements you need without overprovisioning or compromising your capacity. You can choose AWS services to meet your existing business needs, and as your demand changes, so you can easily shift service options to meet the new requirements. This allows you to save money by adapting services to business requirements, by choosing the right pricing models, and by using reserved capacity.
Instance Size Flexibility with EC2 and RDS
In this video, we will learn how we can use instance size flexibility to further the cost optimize for our environments along with the limitations of size flexibility. In the past, a Reserved Instance purchase was tied to a particular instance size. If you wanted to change sizes, you were out of luck, but now AWS allows Instance Size Flexibility, which allows you to apply a Reserved Instance configured for one instance size to another instance of a different size as long as you stay in the same instance family. So it is another way to match your supply to your demand but also to add cost savings and further optimization.
So far int this course, we have discussed instances: on-demand, reserved, and spot, and we have taken a deeper dive into reserved instances, but let's also take a deep dive into spot instances. AWS says that Amazon EC2 Spot Instances let you take advantage of unused EC2 capacity in the AWS. Spot Instances are available at up to a 90% discount compared to your On-Demand prices. And by the end of this video, you will know what a Spot Instance is, how to use Spot Instances, and how to combine Spot Instances with On-Demand and Reserved Instances to further optimize workload cost with performance.
Using Spot Instances with Containers
In the last video, we learned all about Spot Instances and their cost savings to our AWS environments. Let's take a deeper dive into using Spot Instances for Containers to see how we can stretch our dollars with containerized workloads and run our containers at a lower cost.
DynamoDB Reserved Capacity Pricing
In this video, we take a deep dive into DynamoDB reserved capacity and pricing models. We will also learn what DynamoDB is, the benefits of DynamoDB, and how the different pricing models work.
So far, in this course, we have mentioned tags and how critical they are to your account strategy. In this video, we will define what is a Tag and discuss general best practices along with tagging categories and strategies to see how tags can make it easier to categorize and track your AWS costs.
So far, throughout this course, we have covered right-sizing, instance purchase options, and ways to leverage the right pricing model. In this video, we will learn all about the AWS calculators that we can use to refine our purchase decisions.
AWS Trusted Advisor
In this video, we will define what AWS Trusted Advisor is, and we will learn all about the AWS 5 categories along with the 7 free core checks, the features of Trusted Advisor, and how AWS Trusted Advisor can help us cost optimize our infrastructure.
Using Cost Explorer for Cost Optimization
In this video, we will take a deeper dive into Cost Explorer and the Cost Explorer default reports to see how Cost Explorer can truly help us cost optimize our AWS account.
AWS Cost Optimization Monitor
In this video, we will look at the AWS Cost Optimization Monitor, how it works, and how it is another awesome AWS solution provided for us, their customers, to enhance cost optimization efforts, and cost savings.
Using CloudWatch for Cost Optimization
In this video, we will take a deeper dive into CloudWatch to better understand how to use CloudWatch for cost optimization along with the benefits, features, use cases, pricing, how CloudWatch works, and a few best practices.
Using the AWS Billing and Management Cost Management Dashboard
Throughout this course, we have been discussing how AWS bills your account for usage, ensuring we only pay for what we use. In this video, we will look at the AWS Billing and Cost Management console/dashboard along with the tools, and the features AWS provides to help us monitor, manage, and pay our costs.
Creating a Billing Alarm
In this video, we will create a billing alarm and discuss all the benefits that CloudWatch Alarms can add to tracking your usage and costs, plus your overall cost optimization.
Creating an AWS Budget
In this video, we will walk through how to create an AWS Budget for your account or your organization, along with how you can customize the budgets to make sure you are staying on track and not exceeding your budget.
Serverless Architecture in AWS
In this video, we will take a deep dive into AWS Serverless architectures and learn how using serverless solutions, resources, and features can offer cost savings.
Cost Optimization Design Patterns and Principles
In this video, we will go back and visit the AWS Well-Architected Framework's Cost Optimization Pillar's. We review the recommended design principles for Cost-Conscious Designs to see how important it is to know your business requirements, workloads, AWS services, and use your solutions architects to design your environment, workloads, and systems in the most cost-effective designs while meeting all your requirements.
AWS Simple Monthly Calculator
In this video, we will use the AWS Simple Monthly Calculator and work through two different sets of requirements to see which AWS service, S3 or DynamoDB, provides the most cost savings for each requirement. I was surprised by the results, maybe you will be too, but you will see why it is so important to know your requirements, know your AWS services, and how to use the AWS provided tools to ensure your environment is optimized and you are getting the cost savings from having an optimized environment.
Optimizing Your Storage
In this video, we will take a deep dive into optimizing our storage. We will learn about how S3, EBS, EFS, AWS Storage Gateways, etc., can help us not only optimize our storage but reduce our costs and achieve storage cost optimization.
Optimizing Data Transfers to Reduce Costs
In this video, we will learn multiple ways and best practices to optimize our data transfer costs. We will also review AWS services, resources, and tools that we can use to ensure we are optimizing our data transfer for cost savings.
Tracking and Improving Cost Optimization Over Time
Introduction to Continual Cost Optimization
In this video, we will dive deeper into continual cost optimization and ways to create new skills, new processes, new tools, and new capabilities for the entire team to continually optimize our costs.
Measurement and Accountability
In this video, we will learn how to continually optimize over time by measuring and monitoring our environments and infrastructure to ensure cost optimization and cost-effective designs and builds.
Creating a Cloud Center of Excellence (CCoE)
In this video, we will learn how to create our own Cloud Center of Excellence to create a cost-conscious culture and provide not only optimal cost optimization but operation excellence as well.
Optimizing Costs in Your AWS Account
Benefits of AWS Cost Optimization
In this video, we will cover the benefits of using AWS and the multiple ways AWS helps us Cost Optimize our environment for cost savings.
Thank you for joining me on this deep dive into AWS Cost Optimization! In this video, we will cover what you can do right now to begin cost optimization for your AWS account or AWS Organization.
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