CloudCloud cost optimization

March 29, 2021by Grep & Awk0

Well! Everyone have plans to move to cloud but not all are really looking at the cost perspective!

Considering the greater number of services and time required to launch the services definitely going to justify the cost. However Optimizing the resource utilization, selecting the right type of services would save plenty of dollars.


In this blog, we are going to discuss the ec2 instance and its associated cost in AWS.


Elastic compute cloud famously known as ec2 instance has been one of best services provided by AWS over the years.

The virtualization in the cloud, benefitted thousands of cloud customers in the market. But the real question is, are we selecting the right instance type to run the workload?

Apart from instance types, customers can save a huge cost through the ec2 purchasing model.


There are 3 main purchasing models for ec2 instances in AWS.


  1. on-Demand

Charges per hour basis and cost will vary according to the instance type. The application which can’t afford downtime can definitely look at this option.

Exploring Auto-scaling would be a good option to address the sudden spike in the application workload addressing the dynamic nature of the application against the cost.


  1. Spot Instances

The unused ec2 instances made available for customers at a lower price.

We would say it’s a gambling. Gambling in terms of cost. up to 1/3rd of cost can be saved by going with spot instances.

However the catch is, downtime. Yes it may go down at any time and also at the same time, prices may vary according to the demand.

If your application is not critical and it is best fit for a dev environment where people can afford the outage.


  1. Reserved Instances

Companies can benefit from huge savings; up to 72 percent if they can commit one to three years. But changing the instance type would be painful since the Standard reserved instance doesn’t support

Support change in instance type. However it’s the same on demand instance but the long term commitment and payment option yield you the saving.


Cloud cost optimization doesn’t happen over a night. It requires data to understand the past behavior of infrastructure resources and future strategy & roadmap to arrive at a conclusion.


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