VISI

Cost Optimization Patterns

Compute:

  • On-Demand → Reserved/Savings Plans for predictable workloads (up to 72% discount).
  • Spot for fault-tolerant, stateless, batch jobs (up to 90% off).
  • Lambda for infrequent/short tasks vs. always-on EC2.
  • ASG with mixed instance types (On-Demand + Spot fleet).
  • Right-size instances using Compute Optimizer.

Storage:

  • S3 lifecycle policies to move data to cheaper tiers automatically.
  • S3 Intelligent-Tiering for unknown access patterns.
  • EBS: choose the right volume type (sc1 for cold, st1 for sequential).
  • Delete unused EBS snapshots and EBS volumes.

Networking costs (simplified):

  • Traffic within same AZ: free (use private IP).
  • Cross-AZ traffic with private IP: $0.01/GB.
  • Cross-AZ traffic with public IP: $0.02/GB.
  • Cross-region: $0.02/GB.
  • S3 to CloudFront: free. CloudFront to internet: ~$0.085/GB (cheaper than S3 direct to internet).
  • S3 via NAT Gateway: expensive (NAT data processing charges). Use VPC Gateway Endpoint for S3 instead (free, saves NAT costs).
  • Keep traffic within AWS. Prefer private IPs. Use same AZ for high-throughput (sacrifices HA).

Database:

  • Use RDS Reserved Instances for known workloads.
  • Aurora Serverless for intermittent workloads.
  • ElastiCache to reduce DB read load.
  • Read Replicas for read scaling (cheaper than larger primary).
  • DynamoDB On-Demand for unpredictable. Provisioned + Auto-Scaling for predictable.

Load Balancers:

  • ALB (Layer 7) — HTTP/HTTPS, path routing.
  • NLB (Layer 4) — TCP/UDP, extreme performance, static IP.
  • GWLB — 3rd-party security appliances.

References

Quiz

A few quick questions based on this unit. Mark it complete when you are done.

Question 1 / 3

What is DynamoDB On?