‫All right,
‫let's talk about cost optimization.
‫So what it is, we exactly know what it is,
‫is stability to run systems, to deliver business value
‫but at the lowest price point possible.
‫That makes a lot of sense.
‫Now, design principles will adapt a consumption mode.
‫So pay for only what you use.
‫So for example, AWS Lambda is one of these services.
‫If you don't use AWS Lambda, you don't pay for it,
‫whereas RDS, if you don't use your database,
‫you still pay for it
‫because you've provisioned your database.
‫So it's a really interesting trade off here.
‫Measure overall efficiency, use CloudWatch.
‫Are you using your resources effectively?
‫Then we have a small ad for AWS,
‫but the idea is that if you move to the cloud
‫then you stop spending money on data center operations
‫because AWS does the infrastructure for you,
‫and they just allow you to focus
‫on your applications, your systems.
‫And you need to analyze and attribute expenditure.
‫So that means if you don't use tags on your AWS resources,
‫you're gonna have to have a lot of trouble figuring out
‫which application is costing you a lot of money.
‫So using tags ensures that you're able
‫to track the cost of each application
‫and optimize them over time,
‫and get a ROI based on how much money
‫it generates for your business.
‫Finally, use managed application level services
‫to reduce the cost of ownership.
‫So that means that because managed services
‫operate at cloud scale,
‫they can offer such a lower cost per transaction or service,
‫and that's really something
‫you have to remember about the cloud.
‫They operate at cloud scale.
‫I've seen, I've read news about people
‫who are like three engineers,
‫only three of them, AWS engineers,
‫and they manage an application that serves 5 million people.
‫I mean, imagine that three people
‫manage a global application on AWS
‫for 5 million people just because they're able
‫to leverage the cloud and operate at cloud scale.
‫So in terms of cost optimization, what do we get?
‫Making sure we know what cost does something.
‫So budgets, custom research reports, cost explorer, and,
‫for example, Reserved Instance reporting,
‫making sure that if we do reserve an instance,
‫we're actually using them
‫and not just paying for unused Reserved Instances.
‫Cost-effective resources.
‫So are we using the right stuff?
‫For example, can we uses spot instances?
‫They're considerably cheaper.
‫Yes, they do have some trade-offs, but can we use them?
‫Can we use cost-effective resources?
‫Or if we know we're using an EC2 Instance for over a year,
‫maybe three years, because we provision a database on it,
‫can we use Reserved Instances?
‫That would be a great way of saving money.
‫AWS Glacier.
‫So are we basically putting our archives
‫in the lowest price point possible?
‫And Glacier is the lowest price point possible.
‫Are we matching supply and demand?
‫So are we not over provisioning?
‫So again, Auto Scaling, or maybe AWS Lambda
‫if you're using serverless infrastructure.
‫And are we optimizing over time?
‫So getting information from Trusted Advisor or again,
‫looking at our Cost and Usage Report,
‫or even reading the News Blogs.
‫Let me just share with you a small story.
‫There was this ELB feature,
‫and it allowed to use HTTP and HTTPS traffic going in,
‫but you couldn't do redirect of HTTP to HTTPS before.
‫And so you had to spin up an application
‫that was doing the redirect behind the scenes,
‫and that application was costing me a little bit of money.
‫But then reading the News Blog,
‫they said "now you can, straight from the ELB,
‫configure redirect of HTTP to HTTPS."
‫And that was great.
‫It saved me, you know, a bit of money every month
‫just with that one feature.
‫So reading the news does allow you to optimize your cost
‫and make sure you have the right price point.
‫Last story is, for example,
‫if you run an application on DynamoDB
‫but it's really inactive, it's a really slow application,
‫or you don't need to use a lot of operations,
‫maybe you're way better off using
‫the on-demand feature of DynamoDB
‫instead of using the reserve capacity, WCU, RCU, and so on.
‫Okay, so that's it just for small anecdotes,
‫but I hope that helps.
‫We've seen all the pillars now,
‫and I hope you understand better
‫the AWS Well-Architected Framework.
‫Again, the exam will not ask you deep questions on it,
‫but it's good as a solution architect
‫to understand it overall.
‫And if you're really curious about it,
‫I encourage you to read the Whitepaper.
‫Okay, that's it.
‫I will see you in the next lecture.