Cost Optimization Design Principles

🦄 05 Design Principles for Cost Optimization

There are five design principles for Cost Optimization in the cloud:

1. Adopt a consumption model: Pay only for the computing resources that you require and increase or decrease usage depending on business requirements, not by using elaborate forecasting. For example, development and test environments are typically only used for eight hours a day during the work week. You can stop these resources when they are not in use for a potential cost savings of 75% (40 hoursversus 168 hours).

2. Measure overall efficiency: Measure the business output of the workload and the costs associated with delivering it. Use this measure to know the gains you make from increasing output and reducing costs.

3. Stop spending money on data center operations: AWS does the heavy lifting of racking, stacking, and powering servers, so you can focus on your customers and organization projects rather than on IT infrastructure.

4. Analyze and attribute expenditure: The cloud makes it easier to accurately identify the usage and cost of systems, which then allows transparent attribution of IT costs to individual workload owners. This helps measure return on investment (ROI) and gives workload owners an opportunity to optimize their resources and reduce costs.

5. Use managed and application level services to reduce cost of ownership: In the cloud, managed and application level services remove the operational burden of maintaining servers for tasks such as sending email or managing databases. As managed services operate at cloud scale, they can offer a lower cost per transactionor service.