This chapter covers the following official AWS Certified SysOps Administrator – Associate (SOA-C02) exam domain:
Domain 6: Cost and Performance Optimization
(For more information on the official AWS Certified SysOps Administrator – Associate [SOA-C02] exam topics, see the Introduction.)
In this chapter, you learn how to use AWS strategies and services to optimize your costs. AWS offers several services to optimize costs, including Trusted Advisor, AWS Compute Optimizer, and Cost Explorer.
You also learn how to use AWS Budgets to limit cost overruns on your AWS accounts. Additionally, you learn how to set up billing alarms, which can be used to notify you if you reach a threshold, such as a maximum amount you want to spend in a month.
This section covers the following objective of Domain 6 (Cost and Performance Optimization) from the official AWS Certified SysOps Administrator – Associate (SOA-C02) exam guide:
6.1 Implement cost optimization strategies
If you can correctly answer these questions before going through this section, save time by skimming the Exam Alerts in this section and then completing the Cram Quiz at the end of the section.
1. How many components does a cost allocation tag have?
2. What is an example of one of the EC2 checks that Trusted Advisor performs for cost optimization?
1. Answer: A tag has two components: a key and a value.
2. Answer: Low Utilization of Amazon EC2 Instances, Amazon EC2 Reserved Instance Lease Expiration, or Amazon EC2 Reserved Instance Optimization.
It might sound odd, but Amazon doesn’t want you to spend too much money on AWS services. Yes, the company would be happy if you migrated your infrastructure to AWS and spent a lot of money on its platform, but Amazon doesn’t want you spending more money than required to meet your business goals.
There is a very simple reason for this: customers who feel as if they are paying too much for a product or service are likely to look to an alternative vendor for a solution. Unfortunately, if you aren’t using the tools that Amazon provides to optimize costs, you can easily end up paying more than you need to.
In previous chapters, you learned how to apply tags to resources. Recall that a tag is metadata that can be used to group resources for a variety of different functions, including automation tasks, and to group resources by business unit.
A tag has two components: a key and a value. The key is a name that can be used on multiple resources. For example, a key named “department” could be applied to different resources, such as S3 buckets or EC2 instances. The value of the tag would be used to indicate which department is responsible for the resource.
In larger organizations, each department has its own budget for AWS resources. In situations like this, cost allocation tags are used to determine which department is responsible for the costs associated with a resource.