Cost Management
Overview
Managing cloud costs requires planning and monitoring. There are a few simple steps to follow.
- Understand where costs come from
- Set budget goals with alerts
- Take action if budgets are exceeded
Cost Explorer
The Cost Explorer helps you see and track costs over time.
- View charges by day, service, account, or tag
- Forecast future spending based on past usage
- Free tool for basic cost analysis
It gives a clear picture of spending trends but does not provide detailed item-level charges or budgeting features.
Budgets in Action
Budgets help monitor and manage expenses.
- Create custom budgets for services or accounts
- Track spending against goals
- Get alerts when limits are close
With budgets in place, you can take quick action to avoid overspending.
Respond with Actions
Budgets can trigger automatic responses when limits are exceeded.
- Send alerts through email or SNS
- Trigger AWS Lambda functions for automation
- Stop or restrict new resources when needed
This helps prevent costs from going out of control by automating responses to budget breaches.
Guidelines for Budgets
Budgets only work well if they are planned carefully.
- Base budgets on accurate business needs
- Consider all related costs
- Keep goals clear and purposeful
Good planning ensures budgets are useful and avoid sending irrelevant alerts.
Billing Conductor
Billing Conductor organizes and splits costs by groups.
- Assign spending to teams, projects, or users
- Break down costs into smaller units
- Use detailed reports for accountability
This is useful when multiple teams share resources but need individual cost tracking.
Reserved Instance Flexibility
Reserved Instances give savings with long-term commitments.
- Lock in discounts by committing to usage
- Flexibility to change sizes within the same family
- Savings apply based on a normalization table
For example:
2 x m3.medium RIs = 1 x m3.large RI
This flexibility makes Reserved Instances more adaptable while still keeping discounts in place.