Compute Optimization & Cost Efficiency

AWS offers multiple compute options, and optimizing compute resources is essential for achieving cost efficiency, scalability, and high performance. SecureCart must ensure its compute infrastructure is optimized to handle demand fluctuations while minimizing unnecessary costs.

Why does SecureCart need compute optimization & cost efficiency?

  • Avoids over-provisioning compute resources, reducing costs.

  • Ensures workloads run efficiently without unnecessary latency.

  • Utilizes auto-scaling to adjust compute capacity dynamically.

  • Maximizes AWS pricing models to optimize spending.


🔹 Step 1: Understanding Compute Optimization Strategies

Compute optimization is about balancing performance and cost by selecting the right instance types, scaling strategies, and pricing models.

Optimization Strategy

Definition

SecureCart Use Case

Right-Sizing Instances

Selecting the appropriate compute resources for workload demands.

Using Graviton-based instances for better price-performance.

Auto-Scaling

Dynamically adjusts compute resources based on demand.

Expanding checkout services during high traffic periods.

Compute Pricing Optimization

Using the best pricing model (On-Demand, Reserved, Spot).

Using Spot Instances for non-critical background tasks.

Efficient Workload Distribution

Load balancing and workload segmentation.

Distributing product catalog queries across optimized instance types.

Best Practices:Right-size instances by monitoring CPU, memory, and I/O usage.Use auto-scaling to handle demand fluctuations dynamically.Utilize Spot Instances and Savings Plans to reduce costs.


🔹 Step 2: Choosing the Right AWS Compute Services

AWS provides multiple compute services that offer different cost-saving benefits:

AWS Compute Service

Cost Efficiency Strategy

SecureCart Implementation

Amazon EC2

Use right-sizing and Reserved Instances for predictable workloads.

Runs SecureCart’s backend services and order management system.

Amazon EC2 Auto Scaling

Scale instances dynamically based on traffic patterns.

Handles traffic spikes during flash sales.

AWS Lambda

Pay-per-execution with no idle costs.

Processes checkout transactions efficiently.

AWS Fargate

Serverless containers with automatic scaling.

Manages SecureCart’s product search service.

Amazon ECS/EKS

Optimize container workloads with Spot Instances and cluster scaling.

Runs SecureCart’s AI-based recommendation engine.

Best Practices:Use EC2 Reserved Instances for predictable, long-term workloads.Leverage Lambda for event-driven processing to minimize idle costs.Use Fargate for containerized workloads that don’t require dedicated EC2 instances.


🔹 Step 3: AWS Compute Pricing Models & Cost-Saving Strategies

AWS offers different pricing models that help optimize costs:

Pricing Model

Best For

SecureCart Implementation

On-Demand Instances

Short-term workloads with unpredictable usage.

Handles real-time order processing.

Spot Instances

Non-critical, interruptible workloads at a lower price.

Runs SecureCart’s background analytics jobs.

Reserved Instances (RIs)

Long-term workloads with predictable usage.

Supports SecureCart’s web servers with a 1-year RI commitment.

Savings Plans

Flexible compute savings over a 1-3 year period.

Optimizes SecureCart’s general compute costs.

Best Practices:Use On-Demand for short-term workloads.Utilize Spot Instances for fault-tolerant workloads.Adopt Savings Plans for steady-state workloads to maximize cost efficiency.


🔹 Step 4: Optimizing Compute Performance & Utilization

AWS provides tools and strategies to improve compute efficiency and reduce wastage:

Optimization Method

Purpose

SecureCart Implementation

Compute Optimizer

Recommends right-sized EC2 instances based on usage.

Suggests M6g instead of M5 for cost efficiency.

Graviton-Based Instances

Uses ARM-based instances for better price-performance.

Switching SecureCart’s web API from x86 to Graviton.

Auto Scaling Policies

Ensures optimal compute capacity.

Adjusts checkout service instances dynamically.

Instance Scheduling

Turns off unused instances during non-peak hours.

Shuts down development environments at night.

Best Practices:Enable Compute Optimizer to identify underutilized instances.Leverage AWS Graviton-based instances for performance gains.Use instance scheduling to stop unused instances.


🔹 Step 5: Cost Optimization for Serverless & Containers

Why? – SecureCart reduces compute costs by optimizing serverless and containerized workloads.

Cost-Optimization Strategies for AWS Serverless & Containers:

Optimization Method

Purpose

SecureCart Implementation

Provisioned Concurrency for Lambda

Reduces cold-start latency for critical functions.

Ensures checkout processing remains fast.

Spot Instances for ECS/EKS

Saves costs on non-critical containerized workloads.

Runs AI model training at lower costs.

Savings Plans for Fargate

Reduces costs for predictable container workloads.

Optimizes SecureCart’s product search service.

Best Practices:Use Provisioned Concurrency for Lambda functions that require low latency.Leverage Spot Instances for ECS/EKS workloads that can tolerate interruptions.Adopt Savings Plans for steady-state workloads running on Fargate.


🔹 Step 6: Monitoring & Cost Analysis for Compute Efficiency

Why? – SecureCart tracks compute costs and optimizes infrastructure for maximum efficiency.

AWS Cost Monitoring Tools for Compute Optimization:

Monitoring Tool

Purpose

SecureCart Use Case

AWS Cost Explorer

Analyzes compute cost trends and usage.

Identifies cost spikes in compute resources.

AWS Budgets

Sets cost limits and alerts for exceeding budgets.

Prevents unexpected compute overages.

AWS Compute Optimizer

Recommends optimal instance types.

Suggests cost-efficient alternatives for workloads.

AWS Trusted Advisor

Provides cost-saving recommendations.

Detects underutilized instances in SecureCart’s environment.

Best Practices:Use Cost Explorer to track cost trends and optimize spending.Set budgets and alerts to prevent unexpected costs.Regularly review Compute Optimizer recommendations for right-sizing.


🚀 Summary

Use AWS auto-scaling and compute right-sizing to dynamically adjust capacity.Leverage Spot Instances, Reserved Instances, and Savings Plans to reduce costs.Monitor compute costs using Cost Explorer, Budgets, and Compute Optimizer.Optimize Lambda, Fargate, and containerized workloads for cost efficiency.Use Graviton-based instances for better price-performance ratios.

Scenario:

SecureCart must optimize compute costs while maintaining scalability and performance.

Key Learning Objectives:

✅ Use Compute Savings Plans & EC2 Spot Instances ✅ Right-size EC2 instances & Lambda memory allocations ✅ Optimize serverless function execution with cost-efficient architectures

Hands-on Labs:

1️⃣ Use AWS Compute Optimizer to Right-Size EC2 Instances 2️⃣ Deploy Spot Instances & Compare Cost Savings 3️⃣ Optimize AWS Lambda Costs Using Memory & Execution Tuning

🔹 Outcome: SecureCart reduces compute costs while maintaining scalability.

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