Expert Guide: How to Slash Cloud Cost in 2025

import boto3

lambda_client = boto3.client('lambda')
response = lambda_client.update_function_configuration(
	FunctionName='MyFunction',
	MemorySize=128
)

Case Study

Coca-Cola reduced 65% of operational overhead by migrating vending machine telemetry services to AWS Lambda in 2022. Read more about it here.

6. Leverage Reserved Instances and Savings Plans

Why It Matters

For predictable workloads, Reserved Instances (RIs) and Savings Plans offer up to 72% savings over On-Demand pricing.

Action Plan

• Analyze steady-state workloads and commit to 1-year or 3-year Reserved Instances.
• Position Compute Savings Plans when instance family and region flexibility is required.
• Track usage through AWS Cost Explorer to realize your full commitment ROI.

Case Study

Hiya, a telecommunications firm, automated Savings Plans and increased its Effective Savings Rate by 22% in 2022, which reduced incremental costs by $110,000 per year. Read more about it here.

7. Optimize Data Transfer Costs

Why It Matters

Data transfer is an aggressively growing cost for any workload, mainly if your workload requires cross-region traffic or content delivery.

Action Plan

• Leverage AWS CloudFront to serve frequently accessed data closer to your customers to decrease egress costs.
• Collocate resources within the same region to minimize inter-region transfer fees.
• Take advantage of usage monitoring through AWS Cost Explorer and AWS Billing Dashboard.

Case Study

Canva optimized its cloud infrastructure to yield a 46% reduction in both compute and data transfer cost, thanks to the use of CloudFront and efficient networking strategies. Read more about it here.

8. Monitoring and Cost Governance With AWS Budgets

Why It Matters

If someone does not have visibility into AWS resources spent, it is easy to overshoot. AWS Budgets and Cost Anomaly Detection provide actionable insights with alerts.

Action Plan

• Set up budgets for particular services or teams and configure notifications via email or SNS.
• Use AWS Cost Anomaly Detection to automatically flag unusual spending patterns.

Code Example

{
	"Budget": {
		"BudgetLimit": {
			"Amount": 1000,
			"Unit": "USD"
		},
		"Notification": {
			"ComparisonOperator": "GREATER_THAN",
			"Threshold": 80,
			"Subscribers": [
              {
              "SubscriptionType": "EMAIL",
              "Address": "developer@example.com"
              }
			]
		}
	}
}