One of the things that attract start ups and enterprise customers to cloud deployments is on-demand pricing: you only pay for what you use. This is certainly the cornerstone of AWS billing principles. In fact, some AWS services, like VPC, Elastic Beanstalk, CloudFormation, Opsworks, and IAM are available at no charge at all. You will only be billed for the compute resources you actually run.
Nevertheless, accurately anticipating your monthly costs can sometimes be tricky, so here are five quick tips for managing the Billing on your AWS account.
1. Pay Less when you reserve AWS instances
If you’re currently using an on-demand EC2 or RDS instance, take a few minutes to do a review. If it turns out that your usage is fairly steady over a long period, you may find that reserve pricing can cost you quite a lot less. One up-front payment covering a period of between one and three years can go for a significant discount over the hourly usage for the same instance.
2. Bid on the Spot market for unused AWS Resources
When you launch an instance, you’re given the option of bidding for unused EC2 capacity on the Spot market. When your bid price is equal to or higher than the current Spot price, you will automatically be given use of an EC2 instance of the specified type for as long as the price doesn’t rise above your bid. Spot bidding can save you up to 90% on the cost of Ec2 instances.
Spot instances are useful for heavy lift tasks such as complex analytics, Big Data processing, scientific computing, and media processing. You just have to be confident that your application can survive unexpected terminations should the Spot price rise above your bid. It may be necessary for you to review the Spot price history in your availability zone.
3. Set CloudWatch alerts to monitor your AWS usage
Use Amazon CloudWatch to have alert notifications sent to you when your monthly charges for using AWS product reach a pre-configured threshold. This frees you from having to log in AWS Billing Console to check for yourself. More importantly, it protects you from the surprises that you can face if you never get around to checking.
How does it work? Suppose your AWS account gets hacked and the intruders decide to spin up few d2.8xlarge instances. When your usage crosses the pre-set threshold, you will receive a message from CloudWatch advising you to take the necessary action.
To get started with CloudWatch, log into the AWS Billing Dashboard, go to Preferences, and select Receive Billing Alerts.
Update: We should also note the huge value of enabling “Receive Billing Reports” alongside “Receive Billing Alerts” – the comprehensive CSV-formatted reports can be a really useful source of valuable insight (hat tip).
4. Tag your resources
When you tag your AWS resources to identify their function or association (QA, Dev, Prod, etc) you’ll be able to quickly know which environments are incurring the highest costs and which business unit is exceeding their AWS cost allocations. This can be a particularly effective way to monitor – and control – costs.
5. Analyze AWS billing reports
AWS provides monthly billing reports that highlight the costs incurred by individual AWS services, and the number of hours used in a month. But some times this isn’t enough when, for instance, you also want to see a forecast of your future expenses or when you’d like to share figures with a customer.
To get this kind of clarity, you can export your billing reports in CSV format or even build a custom application with its own analytics. You could also enable programmatic access to your AWS account and specify an S3 bucket into which you want your billing data copied. AWS will then generate estimated monthly bills several times a day and save them to your bucket. You can also use the S3 bucket data as input for your application.
New on Cloud Academy: AWS Solutions Architect – Associate Exam Prep, Azure Courses, Google Associate Cloud Engineer Exam Prep, Programming Labs, and Much More
Free content on Cloud Academy More and more customers are relying on our technology and content to keep upskilling their people in these months, and we are doing our best to keep supporting them. While the world fights the COVID-19 pandemic, we wanted to make a small contribution to he...
Breaking News: All AWS Certification Exams Now Available Online
Remote proctoring for all AWS certifications Cloud Academy is an Advanced AWS Technology Partner, and we are happy to announce all AWS certification exams are available online! What does this mean for you? You can stay focused on your certification goal. Or you can start a certifica...
How To Build a Career with AWS Certifications
From Iaas and PaaS solutions to digital marketing, cloud computing reshapes the world of technology. As the influence of this technology grows, so does investment. Tens of billions of dollars are being spent on cloud computing-related services each year. This influx is continuing to inc...
What is Cognito in AWS?
Web applications usually allow a valid username and password combination for successful sign in to the application. Modern authentication flows incorporate more approaches to ensure user authentication. When using AWS, this is no exception, thanks to the abilities and features offered b...
The 12 AWS Certifications: Which is Right for You and Your Team?
As companies increasingly shift workloads to the public cloud, cloud computing has moved from a nice-to-have to a core competency in the enterprise. This shift requires a new set of skills to design, deploy, and manage applications in cloud computing. As the market leader and most ma...
Cloud Academy’s Blog Digest: How Do AWS Certifications Increase Your Employability, How to Become a Microsoft Certified Azure Data Engineer, and more
With everything going on right now, it's likely that the only thing you've been reading lately is related to the coronavirus pandemic. It's important to stay informed during these times, but it's also good to jump into something that can take your mind off of the current situation for j...
Which Certifications Should I Get?
As we mentioned in an earlier post, the old AWS slogan, “Cloud is the new normal” is indeed a reality today. Really, cloud has been the new normal for a while now and getting credentials has become an increasingly effective way to quickly showcase your abilities to recruiters and compan...
New on Cloud Academy: Intro to GitOps; AWS Courses; Java, Python, Amazon Linux 2, Ubuntu, & Docker Playgrounds; and much more
New Lab Playgrounds This month, our Content Team released six new "playground labs." Our playground labs provide a safe and secure sandbox environment for you to explore your own ideas, follow along with Cloud Academy courses, or answer your own questions — all without having to instal...
AWS Certifications: How Do They Increase Your Employability and Progress Your Career?
AWS certifications are no walk in the park. They’re designed to validate in-depth, specialist knowledge and comprehensive experience, often requiring months of dedicated studying to earn even for those already working with the cloud platform. But the rewards that AWS professionals ca...
Elasticsearch vs. CloudSearch: AWS Cloud Search Choices
Elasticsearch vs. CloudSearch: What's the main difference? Let's compare AWS-based cloud tools: Elasticsearch vs. CloudSearch. While both services use proven technologies, Elasticsearch is more popular, open source, and has a flexible API to use for customization; in comparison, CloudS...
Cloud Academy Content Roadmap Updates
Welcome to our Q1 2020 roadmap. This is the content we plan to build over the next three months, between February 1 - and April 30, 2020. Let's look at some of our roadmap highlights. Atlassian Bamboo for CI/CD We had a lot of requests for practical guides on how to apply DevOps tool...