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Learn how to identify common AWS cost optimization mistakes, reduce unnecessary cloud expenses, and follow best practices to build a more efficient and cost-effective AWS environment.
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1. Leaving EC2 Instances Running Unnecessarily What is the Issue?
Amazon EC2 allows you to launch virtual servers in the cloud. AWS charges for an EC2 instance as long as it is in the Running state. If an instance is left running after development or testing is complete, it continues to generate charges even if no one is using it.
Example
A developer launches an EC2 instance to test a new feature. The testing is completed in two days, but the instance remains running for another month. Although the server is idle, AWS continues charging for the compute resources.
How to Reduce the Cost Stop instances when they are not needed. Terminate instances that will no longer be used. Schedule automatic start and stop times for development environments. Regularly review running instances. Best Practices Tag every instance with Owner, Project, and Environment. Monitor CPU utilization using Amazon CloudWatch. Perform a monthly review to identify and remove idle instances.
2. Paying for Unattached EBS Volumes What is the Issue?
Amazon EBS provides storage for EC2 instances. If an EC2 instance is deleted but its EBS volume is left behind, AWS continues charging for the storage even though it is no longer attached to any server.
Example
A production server is replaced with a new one. The old EC2 instance is deleted, but the attached 500 GB EBS volume remains. Over time, this unused storage adds unnecessary costs to the AWS bill.
How to Reduce the Cost Review EBS volumes regularly. Delete unattached volumes after confirming the data is no longer required. Enable Delete on Termination for temporary EC2 instances. Best Practices Use EBS snapshots for backups instead of keeping unused volumes. Perform a monthly storage cleanup. Tag EBS volumes to easily identify their owner and purpose
3. Keeping Old EBS Snapshots Forever What is the Issue?
EBS snapshots are used to back up data, but storing every snapshot forever increases storage costs. Many organizations create automatic daily backups but never remove older snapshots.
Example
A company creates daily snapshots for multiple servers. After a year, thousands of snapshots are stored, even though only the latest backups are actually needed.
How to Reduce the Cost Delete outdated snapshots that are no longer required. Configure lifecycle policies to automatically remove old backups. Keep snapshots only for the required retention period. Best Practices Use AWS Data Lifecycle Manager (DLM) to automate snapshot management. Follow a backup retention policy based on your business requirements. Review snapshots regularly to avoid unnecessary storage costs.
4. Using NAT Gateways Without Reviewing Their Usage What is the Issue?
A NAT Gateway allows resources in private subnets to access the internet. While it is useful, it has an hourly charge along with data processing costs. Keeping unused NAT Gateways running can significantly increase your AWS bill.
Example
A development environment has a NAT Gateway running all day, even though it is only used for a few hours each week. This results in unnecessary networking costs.
How to Reduce the Cost Remove NAT Gateways that are no longer required. Shut down unused development environments. Review network architecture regularly to avoid unnecessary deployments. Best Practices Deploy NAT Gateways only when private resources need internet access. Monitor NAT Gateway usage using AWS Cost Explorer and CloudWatch. Review networking costs as part of your monthly cost optimization process.
5. Storing Everything in Amazon S3 Forever What is the Issue?
Amazon S3 is a highly durable and cost-effective storage service, but costs can increase if old files are never removed or moved to cheaper storage classes.
Example
An application stores log files in an S3 bucket every day. After several months, large amounts of rarely accessed data remain in the S3 Standard storage class, resulting in higher storage costs.
How to Reduce the Cost Configure S3 Lifecycle Rules. Move older files to S3 Standard-IA or S3 Glacier. Automatically delete temporary or outdated files. Best Practices Keep frequently accessed files in S3 Standard. Archive older data using S3 Glacier. Review bucket storage regularly using S3 Storage Lens. Apply lifecycle policies to all log and backup buckets.
