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Perform a thorough analysis of each component

Evaluating the cost of AWS services involves a comprehensive analysis of each component’s total cost of ownership (TCO). By understanding both the direct costs and the operational overhead associated with service management, organizations can make informed decisions that align with their budget and operational goals.

Best Practices

  • Total Cost of Ownership (TCO) Calculation: Calculating TCO is essential for understanding the overall financial impact of using various services. Include costs related to management, administration, and potential downtime. This knowledge enables better resource allocation and cost management.

Supporting Questions

  • Have you accounted for both direct costs and operational costs in your analysis?
  • Are you aware of the management overhead associated with chosen services?

Roles and Responsibilities

  • Cost Analyst: Responsible for evaluating and documenting the cost implications of using different AWS services, ensuring a focus on both immediate expenses and long-term ownership costs.

Artifacts

  • Cost Analysis Report: A document detailing the cost projections for various AWS services, alongside a breakdown of operational and management expenses.

Cloud Services

AWS

  • Amazon EC2: Provides scalable computing capacity in the cloud. Its cost structure includes instance pricing, which requires analysis of various instance types for cost optimization.
  • Amazon RDS: A managed relational database service that reduces administrative overhead, allowing for a more efficient cost analysis of database management.
  • Amazon S3: An object storage service that allows for broader cost evaluation regarding data storage and retrieval, vital for managing operational costs.
  • Amazon DynamoDB: A fully managed NoSQL database, which can significantly lower costs through reduced operational overhead compared to self-managed alternatives.

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

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