The 5 Design Principles for Cost Optimisation Using AWS
WOLK is a leading partner of AWS Well-Architected Framework and is certified to perform reviews that identify weaknesses in your cloud-based system.
The five pillars of AWS include operational excellence, security, reliability, performance efficiency and cost optimisation.
Cost optimisation is an ongoing process built on cost-aware workloads targeted to maximise investment while minimising costs. There are five design principles to keep in mind when seeking to optimise costs with AWS.
Five Design Principles
1. Implement cloud financial management
It is essential to invest resources in building capability in the technological domain of the cloud. That means investing in knowledge building programs and resources to become cost-efficient in Cloud Financial Management.
2. Adopt a consumption model
Pay only for the resources you use and target your usage to only what is necessary. Stopping resources during non-business hours can save up to 75% of the regular cost per week.
3. Measure overall efficiency
This information allows you to understand where you gain value when you reduce costs. Track the output of the workload and delivery costs using AWS.
4. Stop spending money on undifferentiated heavy lifting
This design principle allows you to focus on your customers instead of the software. AWS takes care of your data centre operations and removes the responsibility of using managed services for your systems and applications.
5. Analyse and attribute expenditure
To maximise your resources while reducing costs, you can accurately measure the value and use of workloads using the cloud.
Practising Cloud Financial Management
Cloud Financial Management allows you to realise your business value and optimise your costs. Best practices for CFM include:
● Functional ownership
The function can refer to a team or individual who is responsible for maintaining a culture of cost awareness. This group spends a designated percentage of time attending to cost optimisation activity.
● Finance and technology partnership
A relationship must be formed between essential finance and technology personnel to understand the financial goals of the company. This partnership is critical to tracking real-time cost and usage and developing a standard operating procedure.
● Cloud budgets and forecasts
There is high variability in cloud cost and usage amounts based on user activity. Budgets must be adjusted, and forecasts created using an algorithm to allow for this variance in the predictions.
● Cost-aware processes
Cost aware processes need adapting into organisation protocol, and training administered continuously.
● Cost-aware culture
By making information about cost optimisation available to individuals across teams (like a publicly visible dashboard), the workplace culture can adapt a cost-aware mindset. The directive should come from the top down and is achievable through a rewards-based training system for employees.
● Quantify business value delivered through cost optimisation
Don’t just report savings from cost optimisation, but quantify the additional value obtained. Quantifying business value makes it possible to identify the return on your investments.
Schedule a Review
If you’re interested in finding out how you can optimise your costs with AWS, schedule a review with WOLK. WOLK is a leading partner of AWS Well-Architected Framework and offers a service credit that covers the majority of expenses when working through your high-risk areas during remediation.