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AWS CloudWatch: Why I stopped paying for external Monitoring tools

Look, I get it. We've all been there - eyes burning at 3 AM, frantically scrolling through logs trying to figure out why everything's on fire. It's part of the DevOps lifestyle, right? But after one particularly brutal on-call rotation, I started questioning whether we were making things harder than they needed to be.

Our team was dumping thousands of dollars into a fancy monitoring platform, and I was still getting woken up for issues that should've been caught earlier or automated away entirely. Something wasn't adding up.

The "CloudWatch isn't enough" myth

I used to nod along when more experienced engineers said:

"CloudWatch is too basic"

"Real monitoring requires ShinyNewTool's AI-powered-machine-learning-blockchain-enabled dashboards"

It seemed like an unquestionable truth in DevOps circles.

But our monitoring bills kept climbing as we scaled – eventually hitting nearly $4K monthly – and I started wondering if we were getting our money's worth.

One Friday afternoon when deployments were frozen (AKA "remember-that-one-time-when-Bob-deployed-before-a-holiday-and-now-we-have-a-policy day"), I decided to take a fresh look at what CloudWatch could actually do.
And honestly? I was shocked.

CloudWatch had quietly evolved from "that basic metrics thing" into something way more comprehensive. Features I thought were only available in expensive third-party tools were sitting right there in the AWS console, included in what we were already paying for.

What changed my mind about CloudWatch

So what made me reconsider everything? A few eye-opening discoveries:
For one, CloudWatch isn't just a single service anymore. It's this whole ecosystem that covers pretty much everything we were paying that external vendor to do:

  • Collecting and graphing metrics
  • Log aggregation and searching
  • Synthetic monitoring for APIs
  • Anomaly detection using ML
  • Distributed tracing, with X-Ray integration

But the real game-changer was how naturally it all worked together, no agents to babysit, no credentials to rotate, no data transfer fees. Everything just... worked.

The cost difference is real

Let me share some actual numbers from our migration:
We had about 70-ish EC2 instances plus a bunch of serverless stuff. Our previous monitoring setup was costing us almost $4,000/month.

After migrating to CloudWatch, we were paying around $980/month total. Seriously.

The biggest savings came from eliminating per-host fees and data transfer costs. With CloudWatch, we only pay for what we use – no arbitrary "per server" nonsense.
And yes, CloudWatch Logs is pricier than some alternatives at $0.50/GB ingested, but we started to get a lot more selective with what we log (which is probably a good practice anyway).

The integration factor nobody talks about

Here's something I never appreciated before: when your monitoring is native to AWS, everything just flows.

For instance, I spent days trying to get our previous monitoring tool to properly alert on ECS container issues. With CloudWatch? Container Insights was built-in, no configuration needed.

The IAM integration is huge too. Instead of managing a separate auth system and API keys, the same permissions that control who can access a resource also control who can see its monitoring data. One less thing to worry about.

And my personal favorite: EventBridge integration. When a CloudWatch alarm fires, it can directly trigger automation without complexity. No webhooks, no third-party integrations, no hours spent debugging why the alert reached your dashboard but the automation never fired.

Security that made our compliance team happy

For compliance reasons, we eventually had a security audit that made me really appreciate the CloudWatch approach.
The auditors asked about our monitoring data: where it's stored, who has access, whether it contains sensitive info, etc. With our external provider, this spawned a whole mini-project, we had to review their security docs, check if our logs contained PII, and verify their compliance certifications matched our requirements.

With CloudWatch, the conversation went like this:
Auditor: "Where is your monitoring data stored?"
"In our AWS account, in the same region as the services."
Auditor: "Who has access to it?"
"The same roles and permissions that govern our AWS access."
Auditor: "Does AWS have appropriate compliance certifications?"
"Yes, here's the AWS Artifact report showing their certifications."

Done. No extra vendor to evaluate, no data leaving AWS. The compliance folks were thrilled.

What I'm going to cover in this series

I've learned so much tearing down and rebuilding monitoring stacks with AWS native tools that I wanted to share the knowledge. So I'm kicking off this series to walk through exactly how to do it.
Here's my plan:

1. This intro - Why native AWS monitoring matters
2. CloudWatch Metric Filters - Turning logs into actionable metrics
3. CloudWatch Anomaly Detection - Using ML to avoid alert fatigue
4. X-Ray and ServiceLens - Distributed tracing without the complexity
5. CloudWatch Dashboards - Building useful visualizations
6. Synthetic Monitoring - Checking your APIs and user journeys
7. Alarms and Event-Driven Ops - Automating incident response
8. Cost Optimization - Keeping CloudWatch bills reasonable
9. Security Monitoring - Integrating GuardDuty and Security Hub
10. The External Tool Question - When you might still need them

I'll share real examples from previous experiences (sanitized, obviously), with actual CloudFormation templates you can adapt. No theoretical fluff - just practical approaches that have worked for me in production systems.

Getting your hands dirty

If you want to follow along, I'd recommend having an AWS account where you can experiment. Most of what I'll cover fits within the free tier if you're just testing, and I'll highlight any potential cost gotchas.

I've created a GitHub repo for all the code examples: [link coming soon]. Each post will link to the relevant templates.

Let's be real about external tools

I'm not saying external monitoring tools are useless. They still make sense in some scenarios, especially if you're running a complex multi-cloud or hybrid setup. I'll talk about those cases in the final post.

But I am saying that the default assumption that "AWS needs external monitoring" is outdated and probably costing you money. Most AWS-focused teams can get better monitoring at lower cost by embracing CloudWatch and supportive AWS Services.

What's next?

In the next post, I'll dive into CloudWatch Metric Filters - a feature that lets you extract meaningful patterns from logs and turn them into metrics you can alert on. It's been a game-changer for security monitoring in particular.

Until then, I'd love to hear your CloudWatch experiences - good or bad. Drop a comment below or hit me up on LinkedIn if you have specific questions!

This post is the first in my "AWS CloudWatch: The Complete Monitoring Solution" series. Stay tuned for more practical guides on ditching overpriced monitoring tools without sacrificing visibility.
Cover image taken from Unsplash, free to use under its license.

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