By its nature, a typical Startup often starts on a shoestring operation, with initial funding from the founders, more so, from their friends and families. So, it’s very important for a Startup to look for ways on how to start their projects for people, cloud setup, and marketing.
And of course, every startup to manage their capital to succeed. However, it is important for Startups to optimize their cloud spend. This is where Amazon Web Services or AWS comes in. Whether you’re looking for compute power, database storage, content delivery, or other functionality, AWS has the services to help you build sophisticated applications with increased flexibility, scalability and reliability.
AWS allows the smallest to the largest of Startups to scale as needed and is dedicated to helping customers achieve the highest saving potential on their cloud spends.
AWS offers Cloud Financial Management to Startups that will ensure a visibility into their workload costs and will help startups succeed: optimizing cloud costs.
Cost Optimization: the tools AWS offers a startup
• Cost Optimization can happen a few different ways
• How AWS makes this happen – from the simple to the more involved: AWS Cost Explorer; AWS Budgets; AWS Trusted Advisor; and AWS Well Architected Review.
In one of ITProPortal’s article that was released in August, it mentioned that “global lockdowns helped drive huge in cloud infrastructure, with AWS leading the way.
The global cloud computing market saw a huge growth in the second quarter of 2020 as much of the business world pivoted towards lockdown.
It has never been more important than during the current COVID era, with so many local and international startups looking for tangible advice and practical tips to cut cloud costs during a challenging time. Cloud cost optimization has become more important in determining a startup’s success or failure.
For AWS—a leading cloud solutions provider, enables local and global startups expand their business ideas quickly and cost-effectively through cost optimization tools and exercises. Allowing founders to focus on experimentation with minimal risk, development of new business concepts, and speeding up time-to-market.
These important issues were discussed during one of the Roundtable Discussion (RTD) with Digbijoy Shukla, Head of Startup Business Development, ASEAN, held last October which highlighted the importance of startups cost optimization.
AWS Cost Explorer
AWS Cost Explorer has an easy-to-use interface that lets you visualize, understand, and manage AWS costs and usage over time.
Startups can get started quickly by creating custom reports that analyze cost and usage data. Analyze data at a high level (for example, total costs and usage across all accounts) or dive deeper into the cost and usage data to identify trends, pinpoint cost drivers, and detect anomalies.
• Gain a summary view of key cost details, including month-to-date costs, month-end forecasted costs, and saved reports
Automated trend analysis
• Identifies unusual cost and usage events, based on historical patterns
Businesses and organizations need to plan and set expectations around cloud costs. However, the cloud agility requires you to adapt your forecasting processes and tools to match the dynamic nature of your usage. Set up custom budgets and stay informed of how your cost and usage progress and respond quickly when cost or usage exceeds threshold.
AWS Budgets allows you to set custom budgets to track your cost and usage from the simplest to the most complex use cases. With AWS Budgets, you can choose to be alerted by email or SNS notification when actual or forecasted cost and usage exceed your budget threshold, or when your actual RI and Savings Plans’ utilization or coverage drops below your desired threshold. With AWS Budget Actions, you can also configure specific actions to respond to cost and usage status in your accounts, so that if your cost or usage exceeds or is forecasted to exceed your threshold, actions can be executed automatically or with your approval to reduce unintentional over-spending.
• Simplified workflows make it easier to create and manage budgets
Cost Explorer integration
• Provides contextually-relevant data to help you set budgets appropriately
Review budget performance
• View how your actuals have performed against your budget
AWS Trusted Advisor
The AWS Trusted Advisor Explorer solution automatically provisions the infrastructure necessary to aggregate cost optimization recommendations and actively track cost optimization health across your organization over time.
AWS Well Architected Tool (WAR)
The AWS Well-Architected Tool helps customers review the state of their workloads and compare them to the latest AWS architectural best practices
A Startup’s Cloud Spend
• Always use the lowest cost resources that meet the workload requirements
• Picking the right size of machine
• Iterate by adjusting the size of resources to optimize for costs
• Picking the right service for the right need
• Monitor resources and alarms to provide the data for right-sizing
• In order to continually Rightsize, you need the data to make the right decisions
Flexible pricing options designed for startups
Spot Instances (up to 90% savings)
AWS Managed Services
• AWS Managed Services helps:
• Remove the burden of undifferentiated heavy lifting
• Focus on innovating rather than keeping the lights on
• Can offer a lower cost per transaction or service
• Managed services operate at cloud scale
• Reduce or retire technical debt
• Move to services that are maintained by AWS
• Potential to remove or reduce software license costs
Tips for startups
Startups must ensure they visibility into their workload costs and create rreports and budgets, and alerts for when spend deviates from what’s expected.
Even non-tech savvy founders should be aware of these important aspects. They could use the tools that AWS provides to monitor and manage cloud spend – and most of them are free!
Lastly, ensure that you’re using the right cloud services for the right projects.
*Originally appeared at https://mb.com.ph/2020/11/03/benefits-of-cloud-spending-for-startups/