Manage AWS Budgets and Costs

AWS Security and Cost Management Concepts

Dev Bhosale

Principal Data & Cloud Architect

How to manage AWS costs

Three steps of cost management: analyze costs, set budgets, respond with actions

  1. Analyze costs
  2. Set budgets
  3. Respond with actions
AWS Security and Cost Management Concepts

Cost explorer

Cost explorer demo

AWS Security and Cost Management Concepts

Budgets in action

Budgets in action

AWS Security and Cost Management Concepts

Respond with actions

Respond with actions: Budgets sends an API notification using SNS. Lambda receives the notification and responds

  • AWS Budgets has built-in email notifications
  • Integrates with SNS for API notifications
  • AWS Lambda reacts to SNS budget alerts
  • Using Lambda, you can prevent creation of new resources when a budget threshold is reached
AWS Security and Cost Management Concepts

Guidelines for budgets

  • Budgets doesn't guarantee financial control
  • Budgets must be based on accurate, specific business needs
  • Effective budgets consider all costs, are goal-oriented

Budget guidelines

AWS Security and Cost Management Concepts

Billing Conductor

AWS Billing Conductor logo

  • Organize cloud costs by project
  • Track spending for different teams or users
  • Create custom billing reports
  • Improve budgeting and cost visibility
AWS Security and Cost Management Concepts

Reserved instance flexibility

  • Save money with Reserved Instances
  • Flexibly adjust instance size
  • Discounts apply within instance family
  • Purchased capacity is calculated using normalization table

Normalization for reserved instance

AWS Security and Cost Management Concepts

Let's practice!

AWS Security and Cost Management Concepts

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