The world of cloud computing is now the norm, as almost all organizations and entities use cloud services for all their computing functions. Cloud computing brings ease to daily tasks and functions within an organization.

While there are several cloud computing services, most organizations tend to prefer AWS or Amazon Web Services. AWS provides cloud computing services on the go and on-demand. Their various packages cover all levels of organizations, making them an almost default cloud computing option.

AWS also offers a plethora of services for all applications a company could need, but their pricing may tend to be on the higher side. The AWS pricing system is quite fair, and the stacking of prices might result from inefficient use of services.

Organizations that use AWS may end up paying more than they have to by taking on redundant services that are not necessary for their functions, or perhaps there are some financial blockers on their framework that rake up costs. Whatever the problem, several companies offer AWS Cost Optimization services to tackle these obstacles.


Before optimizing spending on cloud infrastructure, it is essential to understand the systematic principles of the AWS pricing system. Understanding how they price their services and plans helps streamline a company’s or organization’s functions. There is minimal chance of wastage, allowing for efficient use of the AWS.

Pay as You Use

AWS allows companies to pay for their services by the hour. In this package, the company only pays for the amount of time they spend on AWS. This feature turns capital expenses into operational expenses, which are generally lower, and therefore calls for a smaller budget.

More for Less

AWS pricing packages also offer discounts and slashed rates for companies that use their services in bulk, almost like wholesale pricing. The more of their service/s a company utilizes, the less they will have to pay. Another option to minimize costs is to pay upfront. AWS provides packages at discounted prices when companies pay large sums upfront (advance).

Reserved Instances

Reserving AWS services for a period of 1 to 3 years allows for companies to avail almost a 72% discount. Instead of using AWS on-demand, which most companies do, reserved instances will enable them to retain AWS for a stipulated period at lesser costs.

Additionally, reserving their services like EC2 still allows for flexibility. Companies are free to change their OS, tenancies, and other infrastructure or framework during this reserve period while still accessing AWS. This flexibility makes Reserved Instances a spectacular choice, depending on the budget allocation for the same.


AWS is an ideal partner for every organization requiring cloud computing services. But even after such efficient pricing, companies still end up unnecessarily raking costs. This cost increase occurs due to inefficient use of the AWS system.

Organizations have to use the AWS functions pertinently to maximize their benefits. An excellent method of dealing with this is to use Cost Optimization services offered by companies. They use a very simple process to eliminate unnecessary costs, thus efficiently using their monetary resources.

Step 1 – Setup

Opting for a cost optimization service is the prime option for all sizes of organizations. They ensure proper utilization of resources and maximize efficiency. The first step involved in setting up a cost optimization service is to install their software or application onto relevant systems.

The application scans the usage data and other operations performed using AWS. It scans finance blockers (if any), underutilized EC2 instances, continuously unused resources, and other avenues for saving AWS costs.

Step 2 – Review

After running a full scan of the company’s AWS usage across its network, the cost optimization application submits a detailed report of its findings. These findings recommend a proper strategy for using current AWS resources and the necessary changes in usage.

It can help assess the amount of data processing and move cold data to more cost-efficient storage options. For example, AWS creates backups periodically, and each backup overlaps with the previous ones unless the data has been cleared.

This overlap takes up more storage than necessary, leading to increased costs. The application itself presents a forum to apply these changes, which also reflect in the company’s AWS infrastructure. The software only recommends the changes in usage, and it is up to the organization to decide whether to implement the recommendations.

Step 3 – Save

Software/applications like Cloudfix have a user-friendly UI, which helps organizations stay updated on their AWS usage. Features like dashboards compile all pertinent information in a single place, in visual forms.

These applications allow the organization to understand their AWS usage and thoroughly explain avenues for more efficient utilization. Implementing their recommendations tend to speed up the work process, streamline network functions, and maximize AWS benefits, which increases cost-efficiency and the company’s savings.


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