EC2 (Elastic Cloud 2) Cost Optimization.

What is EC2 (Elastic Cloud 2) cost optimization?

EC2 cost optimization is the practice of minimizing the cost associated with any EC2 Instances in AWS (Amazon Web Services) by identifying and eliminating any wasteful spending or unused resources.

Why would you want EC2 cost optimization?

EC2 instances can account for a very high portion of AWS costs. Optimizing EC2 usage can help organizations reduce their AWS bill, allow efficient resource utilization, and improve scalability.

An optimized EC2 can offer many advantages that can help minimize costs in AWS platforms. Since EC2 accounts for a high proportion of AWS (Amazon Web Costs), an optimized plan can reduce your overall bill, allowing for greater room to scale operations while remaining within acceptable costing perimeters.

How does EC2 cost optimization work?

The ability of EC2 to optimize resource allocation and reduce wasteful spending is achieved through its various management features and flexible pricing options. In conjunction with EBS, it allows you to monitor and analyze your cloud infrastructure to maximize the efficiency and effectiveness of your instance data storage and compute resources.

An efficient EC2 cost optimization should help:

  • Utilize performance monitoring in order to choose the right instance size.
  • Use EC2 or a compute savings plan AFTER rightsizing files.
  • Utilize spot instance saving to run workloads that can be interrupted and are not time sensitive.
  • Implement horizontal scaling by setting up auto-scaling where needed.
  • Continuously monitor EC2 usage and real-time costs using various tools like Cost Explorer and Trusted Advisor.
  • Implement instance lifecycle management to automatically stop, terminate or hibernate instances, especially in lower-priority environments that don’t need to run constantly.
  • Resource tagging to track and manage EC2 instances based on business units, projects, and cost allocation tags.

For new applications, an ECS can help run burst and long-run sustained performance tests to select the right instance type and scaling factor.

What’s the value of using EC2 cost optimization?

By forecasting and budgeting EC2 costs, organizations can make informed decisions about resource allocation and strategic planning, ensuring that they are using EC2 instances to achieve their business objectives.

If you’re planning to update or expand your current cloud architecture, you should talk to your software design team or manager about an EBS optimization, as it could help tell you to decide:

  • Whether you’ve chosen the right instance size to operate at peak performance. Instance sizing relates to the size of a file, project or process without your operating system. Not all files need to be as large as they are when they’re initially run, which is where an optimized plan can help reduce unnecessarily large instances.
  • Whether to follow your organization’s rightsizing plan with a compute savings or EC2 performance check. Rightsizing planning is about restructuring your business to meet new objections, opportunities and increased efficiencies. Following this top-scale planning with a digital audit can help achieve these overarching goals.
  • How you can implement horizontal scaling. If you’re increasing the current branches of your business, you may require a way to optimize your procedures to ensure that you remain consistently scaled. Often agencies will expect the same results with horizontal scaling of their operations, finding later that their model’s ‘speed bumps’ become major ‘potholes’ at scale.
  • How you can achieve constant monitoring of your systems. If you want to improve overall EC2 usage and expenditure, you may consider various monitoring tools, such as Cost Explorer and Trusted Advisor, to give you insights into your EC2 library. These tools will give you better real-time data on your cloud-based systems and their efficiency.
  • If you need lifestyle management. For greater control over your EC2, lifestyle management can stop, terminate or send certain systems to sleep, which means your EC2 is only as active and costly as it needs to be for optimum system performance.
  • If you need resource tagging. Track and manage the number of instances you have in your EC2. These can be ‘tagged’ depending on whether they relate to a particular business unit, project or cost allocation.
  • On whether you might foreshadow new applications. See further into the future with short burst and long-range sustained performance tests, which indicate the right instance type to use for your project. How large your instance or file needs to depend on the project and how far you intend to scale your system. If you’re unsure, set up a meeting between the software engineers and the product managers to discuss this further.

Main advantages of EC2 cost optimization

  • Enables identification of cost optimization opportunities for Amazon EC2 instances
  • Helps optimize EC2 instance utilization and performance
  • Facilitates effective instance sizing and capacity planning
  • Helps minimize unnecessary EC2 costs and waste
  • Provides visibility into EC2 instance usage and spending
  • Enables cost predictability and better cost control
  • Make informed decisions on resource allocation
  • Create effective strategic plans
  • Ensure optimum instances per project
  • Forecast and budget ongoing EC2 costs
  • Achieve business objectives at scale


  • AMI
  • Elasticity
  • Snapshots
  • Autoscaling
  • Instances 
  • Volumes
  • Spot 
  • Savings
  • Compute
  • Amazon

A common user story

“EC2 cost optimization is a valuable practice that can help organizations save money, improve efficiency, and achieve their business objectives while using AWS effectively and efficiently.”

Any questions?

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