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To reduce AWS spend, start with Cost Optimization Hub to identify opportunities, then verify resource-level recommendations and utilization before changing anything. Rightsize or remove confirmed waste first; consider a Savings Plan only for the steady eligible usage that remains. AWS savings figures are estimates, not guaranteed reductions in your bill.
How do I reduce my AWS bill?
- Find candidate savings: Open Cost Optimization Hub and review the opportunities it surfaces across your resources. AWS currently recommends it for identifying cost-optimization opportunities. For EC2-specific downsizing and termination suggestions, Cost Explorer’s rightsizing feature is another route. AWS Cost Explorer rightsizing documentation.
- Inspect the evidence: Open the recommendation and examine resource-level configuration and utilization in Compute Optimizer or the relevant service console. Compute Optimizer analyzes configuration and utilization metrics, and provides recent and projected utilization to help assess price-performance. AWS Compute Optimizer documentation.
- Check workload context: Compare the recommendation with normal peaks, seasonal or monthly patterns, planned growth, dependencies, and performance requirements. A quiet measurement window does not prove that capacity is unnecessary.
- Change in stages: Resize or stop only resources whose owners, schedules, and dependencies are understood. Monitor application performance and costs after each change before making similar changes more broadly.
- Assess commitments last: Once avoidable usage is removed, review whether the remaining eligible compute use is steady enough to support an hourly Savings Plans commitment.
What does AWS rightsizing mean?
Rightsizing means changing a resource’s size or configuration so its capacity better matches workload needs. For EC2, Cost Explorer rightsizing recommendations focus on instances AWS identifies for downsizing or termination. Compute Optimizer evaluates configuration and utilization and can recommend resource options; use its utilization history and projections to judge both price and performance rather than choosing solely by estimated savings. Cost Explorer rightsizing; Compute Optimizer.
How do I find idle EC2 instances?
Review Cost Explorer rightsizing suggestions and Compute Optimizer findings, then validate the instance before stopping or terminating it. Check who owns it, whether it follows a schedule, what depends on it, and whether the measurement period includes workload peaks.
Cost Explorer’s documented rightsizing calculation uses the previous 14 days and classifies an EC2 instance as idle when its maximum CPU utilization is at or below 1%. That is a rule used by this calculation, not a universal definition of idle or proof that an instance is safe to delete. Low CPU alone may not reveal intermittent, scheduled, or non-CPU work. AWS explanation of rightsizing calculations.
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Which AWS resources can Compute Optimizer cover?
AWS lists recommendations for the following resource types. A particular resource must meet the service requirements and have sufficient metric data; supported resources and regional availability can change, so confirm current coverage in the AWS documentation.
- EC2 instances and Auto Scaling groups
- EBS volumes
- Lambda functions
- ECS services on Fargate
- Commercial software licenses
- Aurora and RDS databases
- NAT Gateway and DynamoDB
- ElastiCache, MemoryDB, and DocumentDB
- WorkSpaces and SageMaker
For EC2 memory recommendations, Compute Optimizer can ingest external memory metrics from observability products, including Datadog and Dynatrace. Availability and setup details should be checked in AWS’s current service documentation. Compute Optimizer supported resources and metrics.
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How far back do recommendations look?
Compute Optimizer’s default analysis starts with 14 days of CloudWatch utilization metrics. Recommendation preferences allow 14-, 32-, or 93-day lookbacks; 32 days can help include a monthly pattern, while the 93-day option requires paid enhanced infrastructure metrics. Pick a window that captures the workload’s real operating cycle, not merely a convenient stretch of low demand. AWS recommendation preferences.
How do I balance savings against performance risk?
Compute Optimizer preferences let you tune CPU utilization thresholds and CPU and memory headroom. AWS documents default EC2 settings of a P99.5 CPU threshold and 20% CPU and memory headroom. These settings affect what the service recommends; they are not a guarantee of workload performance.
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- Lower thresholds or less headroom: May surface more savings opportunities, but leave less capacity for peaks or variation.
- Higher headroom: Reserves more capacity for changing demand, usually at the cost of fewer aggressive savings suggestions.
- Longer lookbacks: Can expose monthly or less frequent patterns when the selected period includes them, but cannot account for future changes that have not appeared in the metrics.
For production workloads sensitive to latency or throughput, preserve capacity for credible peaks and validate changes under realistic load. Compare each option’s estimated savings with its performance-risk classification and expected growth. AWS rightsizing preference details.
Are AWS savings estimates guaranteed?
No. Recommendations model savings from observed usage, pricing, and applicable discounts; the actual bill depends on what you change and how the workload behaves afterward. Cost Explorer’s documented rightsizing calculation omits second-order effects, including the possibility that released Reserved Instance hours could be applied to other instances. An instance-level estimate therefore need not equal the net change across an account. AWS rightsizing calculation details.
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Use estimates to prioritize investigation, then compare actual costs, utilization, and performance after a staged rollout. Check whether displayed estimates account for applicable discounts and whether another resource or commitment changes how usage is billed.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What are Savings Plans?
Savings Plans offer lower rates on eligible usage in exchange for committing to a specified amount of compute usage per hour for a one- or three-year term. A Compute Savings Plan has broad applicability across EC2 instance families and Regions and also applies to eligible Fargate and Lambda usage. Other Savings Plans types have different service and usage scope, so verify eligibility before choosing one. AWS Savings Plans overview; AWS Savings Plans types.
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When should I choose a Savings Plan?
Consider one after removing or resizing waste, when you understand the eligible usage likely to remain. Review AWS’s recommendations alongside coverage and utilization, and compare the plan’s scope and flexibility, term, payment option, and the stability of your expected demand.
AWS bases Savings Plans recommendations on historical usage and does not forecast future usage. A recent migration, seasonal cycle, or planned workload reduction can make past usage a poor guide to future commitment needs. Avoid committing to usage that may disappear; assess representative history and expected operations before selecting an hourly amount. AWS Savings Plans documentation.
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