AWS or amazon web services is a cloud services platform. Its main functions include running servers on the cloud, storage of data on the cloud. It is also used to store information as databases and has a content delivery network to send files worldwide.

It is critical in expanding small businesses as it provides all the tools required like networking and computing. It is a better option than setting up infrastructure for those services as that would be a permanent setup, and inaccurate estimation of needs can lead to a catastrophe.

AWS is adaptable and is perfect for expanding businesses. Further optimization of these services is also being done to improve efficiency. Before looking at AWS cost optimization, let us understand more about AWS and how it functions.

AWS can be divided into three main products based on the services offered. These are EC2, Glacier, and S3.

EC2 is a virtual platform that provides cloud computing services. S3 and glacier are both virtual storage services. S3 is a much more premium service where there is fast access to the data and would be best if one needs recurring access.

Glacier is a more cost-effective service and is tailored for expanding businesses with lower budgets. AWS is also very safe and secure. It has many data centers across the world.

This ensures that a calamity in a certain part of the globe doesn’t affect the services provided. Keeping data localized has other problems too. People may gain access to localized data, and that is not desirable.

The AWS data centers are kept as hidden as possible by placing them in out-of-the-way locations. The centers are also maintained well and are on surveillance to manage attacks or other issues.

Optimization of AWS

The most beneficial aspect of AWS is that one only has to pay for what they use. This is the aspect used by companies in AWS cost optimization. Proper optimization can help startups reach soaring heights.

Most companies start their switch to AWS by recreating their physical requirements virtually. This has no positive outcome and will not allow one to tap into the true potential of cloud services.

The whole infrastructure needs to be modified to integrate it with the cloud services being used. Following are some tips to run a business at ease with AWS.

• Choosing the right pricing models – The pricing model varies within the AWS from service to service. Knowing about all the pricing schemes allows one to manage what plans they select and how they get billed. In some services, there is the option to book reserved capacity. This is much more profitable than on-demand capacity. There is also a pricing model called the savings plan, which helps in reducing costs on EC2 instances.
• Scheduling on/off times – On/off times can be scheduled for instances not currently used in production. These include instances related to testing or development. A schedule can be made every week by taking an overview of the instances and scheduling their active periods based on how frequently they have to be accessed.
• Release unattached elastic IPs – Amazon has a large number of public IPv4 addresses which are assigned to clients along with the services. Each client can have a maximum of five IPs. They are free, but upon the dismissal of the service, the IP has to be paid for. The charge is usually trivial for a single IP, but in the proportions of a company, that could mean a large sum of money going to waste.
• Upgrade to latest instances – AWS services are periodically updated with new features and better functionality. These updated services are better than their predecessors in terms of efficiency. From a cost-cutting point of view, updating to the latest version of services is ideal. Existing instances can also be downsized, giving the same performance at a lower cost.
• Tier-wise data management – Data can be moved to different storage tiers based on how frequently they are accessed. Different tiers of cloud storage have varying features. The main difference between the tiers apart from the cost is the ease of access. This is not an issue when the data is sorted beforehand.

AWS optimization is an ongoing process. New updates are being introduced very frequently, improving existing services and also introducing new ones. AWS optimisation solutions can also be consulted to keep on monitoring and managing instances constantly. Cloud Financial Management or CFM includes AWS optimisation and is a practice that is becoming more common. Optimisation of cloud services is crucial for any company in maximising profits and being efficient.