The COVID-19 crisis gave a significant impetus to digital transformation globally. According to the McKinsey Global Survey of executives, nearly 80% of the customer interactions of respondents are digital. With digital transformation being one of the top business priorities, cloud adoption went on an upward spiral in the recent past. The adoption of Amazon Web Services (AWS) cloud over 2020 grew by approximately 30%, which in turn has revved up the emphasis on cost optimization. 

However, the underlying impact of the crisis was visible in the way organizations, nearly 50%, panic-bought numerous services. This was primarily attributed to their strive in maintaining their edge amid the tightening market dynamics. Rightsizing their cloud spend has become imperative for organizations, to gain complete visibility of consumption and optimize costs even as maximizing ROI.

6 Effective Ways to Reduce AWS Cloud Cost

Following are some of the effective ways for organizations to reduce their AWS cloud costs

Identifying Underutilized Amazon EC2 Instances

The AWS cost explorer resource optimization helps get the report on EC2 instances, which are under low utilization or are idle. Downsizing or shutting these instances can help organizations reduce their costs. Moreover, the AWS Compute Optimizer delivers recommendations that go beyond downsizing across instance families, removing performance bottlenecks. Using Amazon EC2 spot and on-demand instances further help in reducing costs. 

If organizations increase the capacity when they scale up, they also reduce the capacity when they scale down. Rightsizing is a best practice in the case of instances whose peak utilization is not excessive. Analysis of the utilization metrics is imperative for seeking opportunities in moving workloads to different sets of instances that are in line with the requirements.

Optimized Continuous Delivery Process

Organizations that look to increase speed-to-market with numerous non-production environments often end up spending high on infrastructure costs. However, these costs can be reduced with the implementation of light and an optimized continuous delivery process. This helps organizations in driving cost-effective launches in production environments along with controlled, well-monitored releases.

Moving the testing stage to individual applications or microservices in isolation can further help organizations in implementing an optimized continuous delivery process. Most defects are found in testing at the service level. Accurate implementation of the test data is touted to ensure organizations see a high test coverage. Another key best practice for reducing the costs is mitigating the integration testing environment, which includes user acceptance, functional integration, staging, and performance integration.

Assessing Amazon RDS and Amazon Redshift Instances

AWS helps organizations in identifying DB instances that are out of connection over a week’s time, which can be stopped to optimize costs. Organizations