Skip to main content

Section 11: AWS Cost Management and Optimization

AWS Cost Optimization is essential for government agencies to keep budgets on track, ensure transparency, and maximize efficiency.

Cloud Financial Management (FinOps)​

FinOps = Collaboration across finance, tech, and business for cloud cost accountability. Enables smart trade-offs (cost, performance, security) and ensures transparency.

Cost Allocation & Tagging​

Use tags to map resources to projects, departments, programs. Enables charge/showback and detailed auditing.

AWS Cost Management Tools​

  • Cost Explorer: Visualize and analyze costs, detect anomalies.
  • Budgets: Set limits, get alerts if exceeded.
  • CUR: Detailed billing data for auditing.
  • Organizations: Consolidate bills, set policies.

Cost Optimization Strategies​

  • Rightsizing: Match resources to actual workload needs.
  • Elasticity: Auto Scaling pays only for what's needed.
  • Purchasing Options: Save with Reserved Instances/Savings Plans.
  • Storage Optimization: Use S3 Lifecycle, Glacier, EBS tuning.
  • Serverless: Pay only for what’s used.
  • Delete Unused Resources: Automate cleanup.

Government-Specific Considerations​

  • Budget Cycles: Align cloud spend to budget years.
  • Procurement: Plan for long contract cycles.
  • Auditing: Use CUR and tagging for traceability.
  • Strategic Planning: Consider long-term TCO.
  • Compliance: Security overheads must be budgeted.

By following these principles and using the right AWS tools, government entities can control AWS costs efficiently, ensure compliance, and maintain transparency.