How to reduce your AWS costs? Save up to $500k with these guidelines!

George Batschinski

This article will detail how Back4App reduced the AWS bill from $55,492/month to $20,074/month and achieved more than $500k in annualized savings. We will provide practical guidelines based on our own experience handling AWS costs and share some tips that worked well for us.

AWS continues to innovate and dominate the cloud market. It’s grown so much that it has become a key component of Amazon’s strategy. I’m an enthusiastic AWS user, but my concerns about its complexity and cost have led me to explore ways to optimize cloud usage. While it offers an increasingly sophisticated array of services for many kinds of development requirements, it’s not always the most straightforward, fastest, or most affordable option. Ideally, you need to design your architecture to optimize costs as soon as you move to the cloud. This guide will help you to speed up your AWS cost optimization with real lessons learned during our cost savings journey.

Here is a summary of what you will find reading this article:

  • Ask for AWS credits and get up to $100,000;
  • Move data transfer to Cloud Front and save up to 75%;
  • Use private IP (not Elastic IP) and stop paying inter AZ data transfer;
  • Reduce data transfer costs with GraphQL API implementation;
  • Save up to 90% with using Spot Instances;
  • Save up to 75% purchasing reserved instances on AWS Marketplace;
  • Purchase reserved Elastic Cache nodes and save up to 77%;
  • Backup your data in S3 and not EBS and save 75%;
  • Implement Auto-scaling for idle resources;
  • Go for North Virginia region and move away from Sao Paulo;
  • Upgrade to new generation families and save up to 20%;
  • Place an S3 endpoint in your VPC and enable Enhanced Network on EC2.

That’s is how our AWS bill looked like in January 2019. A total cloud cost of $55,49

That’s is how our AWS bill looked like in May 2019. The total cost was $20,074.

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