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Perform cost analysis for different usage over time

Evaluating cost is crucial for ensuring the sustainability and efficiency of your workloads in the cloud. By performing detailed cost analysis on services based on anticipated usage patterns, you can select architectures that not only meet your operational needs but do so in a cost-effective manner throughout their lifecycle.

Best Practices

  • Utilize AWS Pricing Calculator: Leverage the AWS Pricing Calculator to estimate costs for various AWS services under expected workloads. This allows you to make informed decisions based on financial impact and adjust your choices according to usage patterns.
  • Monitor Usage Patterns: Use AWS Cost Explorer to track usage trends and identify any spikes or fluctuations over time, allowing you to adjust your resources accordingly and optimize your spending.
  • Evaluate Managed vs. Unmanaged Services: Consider the trade-offs between managed services and traditional resources. Managed services often come with lower maintenance costs and administrative overhead which can lead to long-term savings.

Supporting Questions

  • Have you established a process for ongoing cost analysis as your workloads evolve?
  • Are you monitoring spending in relation to business objectives?

Roles and Responsibilities

  • Cloud Architect: This role is responsible for designing the architecture of cloud workloads ensuring that cost optimization is integrated into the design phase and ongoing operation.
  • Finance Manager: A Finance Manager should oversee budgeting and spending analysis, ensuring that the cloud expenditures align with the organization’s financial strategy.

Artifacts

  • Cost Management Strategy Document: A comprehensive strategy that outlines how cost will be managed throughout the lifecycle of cloud services, including guidelines on how to evaluate and adjust usage.
  • Usage Monitoring Dashboards: Dashboards set up in AWS that provide real-time insights into usage and costs related to different services, enabling proactive management.

Cloud Services

AWS

  • AWS Pricing Calculator: A tool that allows you to estimate your monthly cost for using various AWS services based on your specific configuration and projected usage levels.
  • AWS Cost Explorer: A service that helps you visualize and manage your AWS costs and usage over time, allowing you to explore and analyze spending trends.
  • Amazon RDS: A managed database service that reduces administrative overhead, allowing organizations to focus resources on applications rather than database maintenance.
  • Amazon EC2: A basic compute service that provides various pricing models to optimize costs based on defined usage levels.

Question: How do you evaluate cost when you select services?
Pillar: Cost Optimization (Code: COST)

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