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Cloud computing has revolutionized the way businesses operate in the digital age, providing a flexible and scalable way to manage infrastructure needs. However, it's essential to keep cloud cost optimization at the forefront, which is where AWS Reserved Instances (RI) come in.
With the potential for significant savings, RI can be a powerful tool for organizations of all sizes. But to truly maximize those savings, it's crucial to follow cloud FinOps (Financial Operations) principles. By understanding your usage patterns, committing to RIs for the long term, utilizing RI exchanges, and following RI purchase recommendations, you can optimize your AWS RI purchases and ensure that you're getting the most value for your money.
In this article, we'll explore these FinOps principles in more detail and show you how to set AWS cost optimization into motion, with the help of Reserved Instances.
What are AWS Reserved Instances (RI) and how do they save you money?
AWS Reserved Instances (RI) are contractual agreements that allow customers to reserve cloud capacity for a fixed period of time. By committing to using this capacity for the reserved period, customers receive a significant discount on the hourly rate compared to On-Demand instances.
This makes RIs an ideal cloud FinOps tactic for businesses that require predictable workloads and need to optimize their cloud spending. This also helps in cloud cost optimization for businesses that require predictable and stable usage patterns.
The basics of FinOps principles and why they're important for optimizing RI purchases
FinOps is a powerful methodology that combines financial management, technical operations, and cloud technology expertise to maximize the value and efficiency of cloud investments. It provides you with the ability to understand and manage cloud infrastructure, better cloud cost tracking, and optimize spending across all levels of the organization.
When it comes to AWS RI purchases, cloud FinOps principles are critical for optimizing investments and achieving maximum cost savings.
How to analyze usage patterns to determine the best RI offerings for your needs?
Analyzing usage patterns is a critical step in determining which AWS RI offerings are most appropriate for your business needs.
- Collecting and analyzing usage data from your AWS account provides insights into instance performance and usage patterns.
- Identifying consistent and stable workloads that can benefit from AWS RIs can help you optimize your RI usage.
- You can leverage various tools and metrics for cloud cost tracking and optimized RI usage, such as AWS Cost Explorer and AWS Trusted Advisor.
- AWS Cost Explorer provides an intuitive interface for analyzing usage patterns, identifying opportunities to modify term length or instance size, and forecasting usage and cost trends.
- AWS Trusted Advisor can help you monitor and optimize your RI purchases by identifying underutilized instances and suggesting opportunities to modify term lengths.
- Following these technical best practices enables businesses to make informed decisions and achieve efficient AWS cost optimization.
How to sell RIs and unlock additional cost savings?
Selling unused or underutilized RIs can help you unlock additional cost savings and optimize your cloud infrastructure investments.
AWS Marketplace can be used to sell your Reserved Instances.
- The AWS Marketplace allows listing RIs for sale, for customers seeking to purchase them.
- The Reserved Instance Marketplace provides a platform to list RIs for sale, set terms of sale, and negotiate with potential buyers.
- Selling unused or underutilized RIs through these tools and programs can help businesses achieve better value for their cloud spending.
- This approach can also enable other customers to purchase cost-effective RI options.
- Recovering some of the upfront costs associated with purchasing RIs is possible through selling unused RIs.
Reserved Instances offer valuable opportunities for cloud cost optimization when utilized for workloads and even if they remain unused. Incorporating Reserved Instances can be a highly strategic financial decision for any business embarking on its cloud journey.
Now you can seamlessly manage all your AWS EC2 Reserved Instances and unlock superior savings with CloudKeeper Auto. And with our results-based pricing model, you only pay when you achieve AWS savings.
Want to know more? Get in touch with our experts.
