AWS Cost Optimization Story: Navigating Multi-Account Complexity

AWS Cost Optimization Story: Navigating Multi-Account Complexity

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4 min read

The Situation

As a Senior DevOps Engineer managing AWS environments for a large organization with multiple AWS accounts, I encountered a significant issue with a client (C) regarding cost management and resource optimization.

Client (C): We’ve been experiencing unexpected spikes in our AWS bills, particularly related to ECS Fargate. We need to get a handle on these costs and manage them better across our accounts.

Me: That’s troubling. Do we have any insight into the scale of these cost overruns? When did you first notice this issue?

C: Our monthly billing reports show that Fargate-related costs have surged by 50% this month. This came to light during our routine billing review.

Me: That’s a substantial increase. Let’s dive into this and figure out how to address these cost issues. Have there been any recent changes or notable anomalies in your ECS Fargate usage?

C: I suspect we might be using Fargate for scenarios where it’s not the most cost-effective choice. I need your help to figure this out.

Data Collection and Analysis

Me: To start, let’s use AWS Cost Explorer to get a detailed breakdown of the Fargate-related costs. This will help us understand where the spending is occurring.

(Several hours later…)

Me: After analyzing the Cost Explorer reports, we observed:

  • High Spending on ECS Fargate: Costs are elevated due to the continuous running of tasks and services in Fargate.

  • Suboptimal Use of Fargate: It appears Fargate is being used for workloads where ECS EC2 with Spot Instances might be more cost-effective.

  • Lack of Load Balancing and Security: We noticed that some services lack proper load balancing, WAF (Web Application Firewall), and SSL/TLS encryption via ACM (AWS Certificate Manager).

C: These findings are helpful. What are your recommendations for optimizing costs?

Optimization Strategy

Me: Here’s a targeted strategy to address the high Fargate costs and optimize overall resource usage:

  1. Switch to ECS EC2 with Spot Instances for Non-Production Workloads:

    • ECS EC2 with Spot Instances: For non-production environments, such as development and staging, use ECS EC2 with Spot Instances. Spot Instances offer significant cost savings compared to On-Demand Instances:

      • Configure Auto Scaling Groups to manage Spot Instances, ensuring you can scale up or down based on demand.

      • Set up ECS tasks to use Spot Instances for non-essential workloads.

    • On-Demand Instances for Production: Continue using ECS Fargate or On-Demand EC2 Instances for production workloads to ensure reliability and stability:

      • Maintain On-Demand Instances for critical applications where uninterrupted service is necessary.
  2. Implement Load Balancing and Security Measures:

    • Use Load Balancers: Incorporate an Elastic Load Balancer (ELB) to distribute incoming traffic across multiple ECS tasks. This ensures high availability and better resource utilization:

      • Set up an Application Load Balancer (ALB) for HTTP/HTTPS traffic or a Network Load Balancer (NLB) for TCP traffic.
    • Add WAF and ACM: Improve security and compliance by integrating AWS WAF to protect applications from common web exploits and using AWS Certificate Manager (ACM) for SSL/TLS certificates:

      • Configure WAF rules to filter and monitor HTTP requests.

      • Use ACM to manage SSL/TLS certificates for secure data transmission.

  3. Cost Allocation and Monitoring:

    • Tag Resources: Implement a consistent tagging strategy to categorize ECS resources by environment, project, or department. This simplifies cost allocation and tracking:

      • Apply tags to ECS tasks, services, and EC2 instances.
    • Set Up Cost Alerts: Configure cost alerts in AWS Cost Explorer to monitor for unexpected spending spikes:

      • Create budget alerts to notify you of any significant deviations from expected costs.

Implementation and Results

(Several days later, after implementing the strategies…)

Me: We’ve migrated non-production workloads to ECS EC2 with Spot Instances, set up Auto Scaling, and continued using On-Demand Instances for production. We also implemented load balancing with ELB, integrated WAF for security, and configured ACM for SSL/TLS certificates.

C: That’s great. How did these changes impact our costs?

Me: By optimizing resource allocation and implementing cost-saving measures, we’ve reduced our monthly ECS Fargate costs by approximately 40%. The introduction of Spot Instances and improved load balancing has also enhanced performance and security. Our cost monitoring and tagging have given us better visibility and control over our spending.

C: That’s fantastic! How can I apply these techniques to other areas?

Me: Here’s the approach I followed:

  1. Analyze Costs: Use AWS Cost Explorer to identify cost drivers and inefficiencies.

  2. Optimize Resource Usage: Switch to cost-effective resource types where applicable, and use Auto Scaling for dynamic workloads.

  3. Implement Security and Load Balancing: Ensure proper load balancing, security measures, and SSL/TLS encryption.

  4. Enhance Monitoring: Use tagging and cost alerts for better visibility and proactive cost management.

Lessons Learned

  1. Resource Optimization: Switching to Spot Instances and optimizing resource allocation can significantly reduce costs.

  2. Security and Load Balancing: Implementing load balancers and security measures improves both performance and compliance.

  3. Proactive Monitoring: Regular monitoring and cost alerts help manage and control expenses effectively.

By following these steps, you can manage and optimize AWS costs more effectively, especially in complex multi-account environments, ensuring efficient resource utilization and better budget control.

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