Expenditure Awareness

💎 Cost Optimization Best Practices - Expenditure Awareness

The increased flexibility and agility that the cloud enables encourages innovation and fast-paced development and deployment. It eliminates the manual processes and time associated with provisioning on-premises infrastructure, including identifying hardware specifications, negotiating price quotations, managing purchase orders, scheduling shipments, and then deploying the resources. However, the ease of use and virtually unlimited on-demand capacity requires a new way of thinking about expenditures.

Many businesses are composed of multiple systems run by various teams. The capability to attribute resource costs to the individual organization or product owners drives efficient usage behavior and helps reduce waste. Accurate cost attribution allows you to know which products are truly profitable, and allows you to make more informed decisions about where to allocate budget.

In AWS you can use Cost Explorer to track your spend, and gain insights into exactly where you spend. Using AWS Budgets, you can send notifications if your usage or costs are not inline with your forecasts. You can use tagging on resources to apply business and organization information to your usage and cost; this provides additional insights to optimization from an organization perspective.

💎 Cost Optimization Questions - Expenditure Awareness

COST 1: How do you govern usage?

Establish policies and mechanisms to ensure that appropriate costs are incurred while objectives are achieved. By employing a checks-and-balances approach, you can innovate without overspending.

COST 2: How do you monitor usage and cost?

Establish policies and procedures to monitor and appropriately allocate your costs. This allows you to measure and improve the cost efficiency of this workload.

COST 3: How do you decommission resources?

Implement change control and resource management from project inception to end-of-life. This ensures you shut down or terminate unused resources to reduce waste.


You can use cost allocation tags to categorize and track your AWS usage and costs. When you apply tags to your AWS resources (such as EC2 instances or S3 buckets), AWS generates a cost and usage report with your usage and your tags. You can apply tags that represent organization categories (such as cost centers, workload names, or owners) to organize your costs across multiple services.

Combining tagged resources with entity lifecycle tracking (employees, projects) makes it possible to identify or phaned resources or projects that are no longer generating value to the organization and should be decommissioned. You can set up billing alerts to notify you of predicted overspending, and the AWS Simple Monthly Calculator allows you to calculate your data transfer costs.