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Sebastian Torres
Sebastian Torres

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AWS Well-Architected Framework - Cost Optimization Pillar

What Is the Cost Optimization Pillar?

The Cost Optimization pillar includes the ability to run systems to deliver business at the lowest price point.

Why is Cost Optimization important to improving my architecture?

Building and operating cost-efficient workloads helps achieve business outcomes at the lowest price point. It minimizes wasteful architecture re-work, and allows greater investment in new business opportunities or technology.


What are the design principles of Cost Optimization?

There are five design principles for Cost Optimization in the cloud.

Implement Cloud Financial Management

To achieve financial success and accelerate business value realization in the cloud, you need to invest in Cloud Financial Management. Your organization needs to dedicate time and resources to build capability in this new domain of technology and usage management. Similar to your Security or Operational Excellence capability, you need to build capability through knowledge building, programs, resources, and processes to become a cost-efficient organization.

Adopt a consumption model

Pay only for the computing resources that you consume. Increase or decrease usage depending on business requirements, rather than using elaborate forecasting.

Measure overall efficiency

Measure the business output of the workload and the costs associated with delivering it. Use this measure to know from increasing output or functionality and reducing costs.

Stop spending money on undifferentiated heavy lifting

Focus on your customers and business projects by allowing AWS to perform data-center operations like racking, powering servers, and removing the operational burden of managing systems and applications with managed services.

Analize and attribute expenditure

The cloud makes it easier to accurately identify the usage and cost of systems, so you can transparently attribute IT costs to individual workload owners. This gives workload owners an opportunity to optimize their resources and reduce costs.


What are the best practice areas of Cost Optimization?

  • Practice Cloud Financial Management
  • Expenditure and Usage Awareness
  • Cost-effective Resources
  • Manage Demand and Supply Resources
  • Optimize over time

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