AWS Saving Efforts Provide Powerful KPIs
AWS can provide cost management metrics that measure the expenses and value offered from provisioned capacity, Amazon EC2, S3, and data retrieval functions.
Join the DZone community and get the full member experience.Join For Free
It is essential to gather and review data from your organization to obtain useful insights that will help assess the performance of your processes. With AWS savings, it’s necessary to calculate AWS expense and utilization performance metrics. This can be measured in the same way as operational activities. As 35% of cloud spend is wasted, organizations need to find more effective ways to maximize their AWS savings.
The previous articles in this series discussed the most common challenges in AWS costs, listed three reasons why organizations need AWS cost optimization, and provided a short introduction to FinOps. This article will suggest cost management metrics that can help effectively track AWS savings, which can be used to predict future performance and help inform cutting decisions.
Observing monthly growth helps frame the perspective for how efficiently AWS implementation will rise in terms of total costs. In order to conform to cyclical trends in the company, review these statistics over several periods.
For example, aside from calculating one-month growth, also determine growth over a period of six months. This will help explain company trends to better forecast future growth.
Provisioned Capacity and Use
Over-provisioning, the distribution of services to improve performance, is one of the principal factors in cloud waste. Many people are still in the habit of not considering size when over-provisioning based on previous methods formed during the days of on-site hosting. However, businesses pay for the capacity provisioned, rather than the space used. This is a warning that the environment is inefficient and requires remedial action to correct the size. Said action can reduce cloud expenses if the provisioned capacity is dramatically higher than the actual usage.
Amazon EC2 Unit Expenses
Amazon EC2 powers many AWS workloads and will account for a greater portion of expenses compared to other services. Developers who usually use EC2 in a variety of workloads should monitor their costs in shorter intervals. This can be done on a daily or even hourly basis. These reports can also help control pricing models. Additionally, knowing the cost per subscriber of the EC2 service will help guide future decisions regarding the software.
Amazon EC2 Instance Expenses
New instance generations also support increased processing power and greater cost savings. For this purpose, it can be effective to describe the EC2 workloads that run on older generations of instances and devise a roadmap to update for new generations. Setting a concrete goal and taking targeted actions to achieve it can help optimize EC2 usage efficiency by reducing overall AWS costs.
Amazon EC2 Usage Coverage
There is a range of pricing models that can increase savings while still scaling up with AWS consumption. Options include Spot instances, Savings Programs, and Reserved Instances, which all represent a number of different use cases for EC2. Setting a threshold of how much the instance fleet should cover will indicate the most optimal model for a particular case.
S3 Expense per Storage Class
Amazon S3 also plays a significant role in AWS savings. This service includes many built-in features to assist cost optimization. Evaluate the different storage groups the company uses that are similar to EC2, and then customize the policies. Lifecycle policies can automate a cost-savings plan.
Expenses for Unused Resources
Every organization pays for unused resources such as recovery snapshots. The amount spent on these is a valuable indicator of how well the organization manages finances in the cloud. There are likely hundreds, if not thousands of unused resources in most organizational cloud environments. These range from idle load balances to unattached block storage volumes.
In many cases, these are difficult to identify. It’s a worthwhile investment to implement a cloud management platform that brings granular visibility to the entire cloud ecosystem and actively monitors and identifies unused resources that can be terminated.
Data Retrieval Costs
Many companies are aware that retaining infrequently used data in cold storage stages will help them save substantial capital. However, when occasionally retrieved data is accessed often enough, the costs could surpass the amount that would have been avoided by placing said data in a cold storage tier.
The intelligent tiering class of AWS partially solves this issue. It can create an overview of object storage charges that are susceptible to higher frequencies of data retrieval. Be mindful that this doesn't work when there is one zone or archived storage.
Number of Cost Spike Notifications
Almost all billing dashboards offer a budget limit setup, which means they will send a notification each time the budget is overshot, or when or a similar cost spike occurs.
Sudden cost spikes can indicate malfunctioning assets or network breaches. These are urgent notifications. Look for cloud management systems that, when designing rules, offer both flexibility and immediate warnings for stakeholders when those policies are broken.
After creating a dashboard with the specific metrics required by the business, strategically evaluate them. For example, metrics regarding spending and usage can support reports to the entire organization about department costs. Metrics referring to value can be compared to market value-drivers to produce KPIs, which can then be tracked according to company goals. AWS can provide innovative KPIs that offer specific and actionable objectives for the company to achieve.
Published at DZone with permission of Sara Miteva. See the original article here.
Opinions expressed by DZone contributors are their own.