Cost Management in the AWS Cloud - Cost Management in the AWS Cloud

Cost Management in the AWS Cloud

Publication date: March 2018 (Document Details)


This is the second in a series of whitepapers designed to support your cloud journey. This paper seeks to empower you to maximize value from your investments, improve forecasting accuracy and cost predictability, create a culture of ownership and cost transparency, and continuously measure your optimization status.

Amazon Web Services (AWS) provides a suite of cost management tools to help you get the most value from your AWS investment. This paper provides an overview of many of these tools, as well as organizational best practices for creating a cost-conscious mindset.


Migrating to the cloud enhances your business’s ability to scale and flex to the demands of your company’s workloads. Historically, computing costs were tied to a quarterly or yearly hardware procurement investment. With cloud technology, you now have the flexibility to initialize resources and services at any time—you pay only for what you use. This has shifted the way that costs are understood, managed, and optimized.

In the past, hardware costs were treated as a capital expense, which led to predictable resource procurement and cost patterns. You had to purchase enough servers to support your company’s most highly trafficked day, which resulted in waste because many of these servers would lie idle for much of the year. Because the cloud lets you scale on demand, you pay only for the resources you use, which minimizes waste but can result in variable cost patterns.

The ability to scale up and down on demand has allowed resource procurement to transition from sole ownership of the finance team to stakeholders across IT, engineering, finance, and other teams. This democratization of resource procurement has initiated an ever-growing group of cost-conscious stakeholders who are now responsible for understanding, managing, and, ultimately, optimizing costs.