AWS Compute Options & Cost Management Tools

AWS provides various compute services that allow businesses like SecureCart to run applications efficiently while optimizing costs. Understanding AWS compute options and cost management tools ensures that SecureCart minimizes spending while maintaining performance and availability.

✔ Why SecureCart Needs AWS Compute Cost Management?

• Optimizes infrastructure costs by selecting the right compute services.

• Ensures dynamic scaling to meet workload demand without over-provisioning.

• Utilizes AWS cost management tools to monitor and control spending.

• Implements best practices to maintain performance while reducing unnecessary expenses.

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🔹 Step 1: Understanding AWS Compute Options

AWS offers multiple compute options that vary in pricing, scalability, and management overhead.

AWS Compute Option	Best Use Case	Cost Optimization Strategy	SecureCart Implementation
Amazon EC2 (Elastic Compute Cloud)	Flexible, full control over virtual machines.	Use Auto Scaling, Spot Instances, and Savings Plans.	Runs SecureCart’s backend services on auto-scaled EC2 instances.
AWS Lambda	Serverless function execution, event-driven.	Pay only for execution time, avoid idle costs.	Processes SecureCart’s order transactions and notifications.
Amazon ECS (Elastic Container Service)	Managed container service for microservices.	Use Fargate to eliminate server management costs.	Runs SecureCart’s shopping cart and checkout microservices.
Amazon EKS (Elastic Kubernetes Service)	Managed Kubernetes for containerized workloads.	Optimize instance selection with AWS Compute Optimizer.	Runs SecureCart’s ML-based recommendation system.
AWS Batch	Serverless batch job processing.	Use Spot Instances for cost-effective job execution.	Processes SecureCart’s sales analytics reports.

✅ Best Practices: ✔ Use EC2 for long-running workloads, but right-size instances. ✔ Use AWS Lambda to replace lightweight, event-driven compute needs. ✔ Leverage ECS Fargate or EKS for cost-effective containerized workloads.

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🔹 Step 2: AWS Compute Pricing Models & Cost Optimization

AWS provides multiple pricing models that allow businesses to optimize costs based on workload requirements.

Pricing Model	Cost Optimization Strategy	SecureCart Use Case
On-Demand Instances	Pay per second, flexible but higher cost.	Used for SecureCart’s bursty traffic loads.
Reserved Instances (RIs)	1-3 year commitment, up to 72% savings.	Used for SecureCart’s backend services with steady usage.
Spot Instances	Up to 90% discount for flexible workloads.	Used for SecureCart’s analytics batch jobs.
Savings Plans	Flexible commitment for up to 66% savings.	Used for SecureCart’s predictable workloads.
Compute Savings Plans	Discounts applied across EC2, Lambda, Fargate.	Reduces compute costs across multiple services.

✅ Best Practices: ✔ Use On-Demand for unpredictable workloads, but avoid long-term usage. ✔ Commit to Reserved Instances or Savings Plans for predictable workloads. ✔ Leverage Spot Instances for batch and fault-tolerant workloads.

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🔹 Step 3: AWS Cost Management Tools for Compute Optimization

AWS offers multiple cost monitoring and optimization tools to help businesses track spending and optimize compute usage.

AWS Cost Tool	Purpose	SecureCart Implementation
AWS Cost Explorer	Tracks compute spending & cost trends.	Analyzes SecureCart’s EC2 and Lambda cost trends.
AWS Budgets	Sets cost thresholds & sends alerts.	Notifies SecureCart when compute spending exceeds limits.
AWS Compute Optimizer	Recommends right-sized instances.	Detects underutilized EC2 instances in SecureCart’s backend.
AWS Trusted Advisor	Provides cost-saving recommendations.	Identifies idle EC2 instances SecureCart can shut down.
AWS Cost and Usage Report (CUR)	Provides detailed cost breakdown.	Helps SecureCart track compute spending across accounts.

✅ Best Practices: ✔ Use AWS Cost Explorer to analyze trends and forecast compute spending. ✔ Set up AWS Budgets to monitor compute costs and get notifications. ✔ Use AWS Compute Optimizer to right-size instances for cost efficiency.

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🔹 Step 4: Compute Optimization Techniques for SecureCart

SecureCart applies multiple cost-saving techniques to ensure compute efficiency.

Optimization Strategy	Purpose	SecureCart Implementation
Auto Scaling for EC2	Dynamically adjusts instance count to match demand.	Ensures SecureCart’s backend scales up/down with traffic.
Use Lambda for Event-Driven Processing	Eliminates idle compute costs.	Processes SecureCart’s checkout workflows with Lambda.
Use ECS Fargate for Containers	No need to provision EC2 for container workloads.	SecureCart’s microservices run in Fargate without overprovisioning.
Right-Size EC2 Instances	Prevents paying for unused capacity.	SecureCart monitors EC2 usage with Compute Optimizer.

✅ Best Practices: ✔ Use Auto Scaling for EC2 to handle peak loads without overprovisioning. ✔ Run serverless workloads in Lambda to eliminate idle capacity costs. ✔ Right-size EC2 instances based on real usage patterns.

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🔹 Step 5: Monitoring Compute Costs & Usage

✔ SecureCart ensures compute efficiency with AWS monitoring tools:

Monitoring Tool	Purpose	SecureCart Implementation
Amazon CloudWatch	Monitors CPU, memory, and resource utilization.	Detects underutilized EC2 instances in SecureCart.
AWS Trusted Advisor	Identifies cost optimization opportunities.	Alerts SecureCart when instances are idle or over-provisioned.
AWS Compute Optimizer	Suggests right-sizing recommendations.	Helps SecureCart optimize EC2, EBS, and Lambda costs.

✅ Best Practices: ✔ Use CloudWatch to track compute resource usage and set alerts. ✔ Review AWS Trusted Advisor to optimize compute resources. ✔ Enable AWS Compute Optimizer for automated cost-saving recommendations.

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🚀 Summary

✔ Choose the right compute option based on workload (EC2, Lambda, ECS, EKS, Batch). ✔ Use the best pricing model (On-Demand, Reserved, Spot, Savings Plans) to minimize costs. ✔ Leverage AWS Cost Management Tools (Cost Explorer, Compute Optimizer, Budgets) to track spending. ✔ Implement Auto Scaling, Lambda, and containerization to optimize compute usage. ✔ Monitor and optimize compute performance using AWS Trusted Advisor and CloudWatch.

Scenario:

SecureCart needs to analyze and optimize compute costs using AWS cost management tools and select the right compute service for different workloads.

Key Learning Objectives:

✅ Understand Amazon EC2, AWS Lambda, and AWS Fargate pricing models ✅ Learn AWS cost management tools (AWS Cost Explorer, Budgets, Cost & Usage Report) ✅ Implement cost allocation tags to track compute expenses

Hands-on Labs:

1️⃣ Compare the Cost of Amazon EC2 vs. AWS Lambda vs. AWS Fargate 2️⃣ Use AWS Cost Explorer to Track Compute Usage & Identify Optimization Areas 3️⃣ Set Up AWS Budgets to Monitor Compute Expenses

🔹 Outcome: SecureCart optimizes compute costs by selecting the right AWS compute service and monitoring costs effectively.