AWS In Practice
Courses
  • Welcome to AWS In Practice by IT Assist Labs!
  • Courses
    • AWS Powered E-commerce Application: A Guided Tour
      • Lesson Learning Paths
        • Lesson Learning Paths - Certification Prep
        • Lesson Learning Paths - Interview Prep
      • Lesson Summaries
        • Introduction
          • E-commerce Application Architecture
        • Multi-Account Strategy
          • Multi-Account Strategy Overview
          • Organization Units
          • Core Accounts
        • Core Microservices
          • Services Overview
          • AWS Well-Architected design framework application
          • Site Reliability Engineering Application
          • DevOps Application
          • Monitoring, Logging and Observability Application
        • AWS Service By Layer
          • AWS Service By Layer Overview
          • Presentation Layer
          • Business Logic Layer
          • Data Layer
        • E-commerce Application Use Cases
          • E-commerce Application Use Cases
          • Roles
      • Lesson Content Navigation Demonstration
    • Explore a Live AWS Environment Powering an E-commerce Application
  • Resources
    • AWS Certification Guide
      • Concepts
        • Security, Identity & Compliance
          • AWS IAM-Related Concepts in Certification Exams
        • Design High-Performing Architectures
          • Designing a high-performing architecture with EC2 and Auto Scaling Groups (ASGs)
    • Insights
      • Zero Trust Architecture (ZTA)
      • Implementing a Zero Trust Architecture(ZTA) with AWS
      • The Modern Application Development Lifecycle - Blue/Green Deployments
      • Microservices Communication Patterns
    • Interview Preparation
      • AWS Solutions Archictect
  • AWS Exploration
    • Use Cases
      • Multi-Region Resiliency with Active-Active Setup
        • Exploration Summary
    • Foundational Solutions Architect Use Cases
    • Security Engineer / Cloud Security Architect Use Cases
    • DevOps / Site Reliability Engineer (SRE) Use Cases
    • Cloud Engineer / Cloud Developer
    • Data Engineer Use Cases
    • Machine Learning Engineer / AI Practitioner Use Cases
    • Network Engineer (Cloud) Use Cases
    • Cost Optimization / FinOps Practitioner Use Cases
    • IT Operations / Systems Administrator Use Cases
  • Study Group
    • AWS Certified Solutions Architect - Associate
      • Study Guide Introduction
      • Domain 1: Design Secure Architectures
        • Task Statement 1.1: Design secure access to AWS resources
          • SecureCart's Journey
          • AWS Identity & Access Management (IAM) Fundamentals
          • AWS Security Token Service (STS)
          • AWS Organization
          • IAM Identity Center
          • AWS Policies
          • Federated Access
          • Directory Service
          • Managing Access Across Multiple Accounts
          • Authorization Models in IAM
          • AWS Control Tower
          • AWS Service Control Policies (SCPs)
          • Use Cases
            • Using IAM Policies and Tags for Access Control in AWS
        • Task Statement 1.2: Design Secure Workloads and Applications
          • SecureCart Journey
          • Application Configuration & Credential Security
          • Copy of Application Configuration & Credential Security
          • Network Segmentation Strategies & Traffic Control
          • Securing Network Traffic & AWS Service Endpoints
          • Protecting Applications from External Threats
          • Securing External Network Connections
          • AWS Network Firewall
          • AWS Firewall Manager
          • IAM Authentication Works with Databases
          • AWS WAF (Web Application Firewall)
          • Use Cases
            • AWS Endpoint Policy for Trusted S3 Buckets
            • Increasing Fault Tolerance for AWS Direct Connect in SecureCart’s Multi-VPC Network
            • Securing Multi-Domain SSL with ALB in SecureCart Using SNI-Based SSL
            • Configuring a Custom Domain Name for API Gateway with AWS Certificate Manager and Route 53
            • Application Load Balancer (ALB) – Redirecting HTTP to HTTPS
            • Security Considerations in ALB Logging & Monitoring
          • Amazon CloudFront and Different Origin Use Cases
          • Security Group
          • CloudFront
          • NACL
          • Amazon Cognito
          • VPC Endpoint
        • Task Statement 1.3: Determine appropriate data security controls
          • SecureCart Journey
          • Data Access & Governance
          • Data Encryption & Key Management
          • Data Retention, Classification & Compliance
          • Data Backup, Replication & Recovery
          • Managing Data Lifecycle & Protection Policies
          • KMS
          • S3 Security Measures
          • KMS Use Cases
          • Use Cases
            • Safely Storing Sensitive Data on EBS and S3
            • Managing Compliance & Security with AWS Config
            • Preventing Sensitive Data Exposure in Amazon S3
            • Encrypting EBS Volumes for HIPAA Compliance
            • EBS Encryption Behavior
            • Using EBS Volume While Snapshot is in Progress
          • Compliance
          • Implementing Access Policies for Encryption Keys
          • Rotating Encryption Keys and Renewing Certificates
          • Implementing Policies for Data Access, Lifecycle, and Protection
          • Rotating encryption keys and renewing certificates
          • Instance Store
          • AWS License Manager
          • Glacier
          • AWS CloudHSM Key Management & Zeroization Protection
          • EBS
        • AWS Security Services
        • Use Cases
          • IAM Policy & Directory Setup for S3 Access via Single Sign-On (SSO)
          • Federating AWS Access with Active Directory (AD FS) for Hybrid Cloud Access
      • Domain 2
        • Task Statement 2.1: Design Scalable and Loosely Coupled Architectures
          • SecureCart Journey
          • API Creation & Management
          • Microservices & Event-Driven Architectures
          • Load Balancing & Scaling Strategies
          • Caching Strategies & Edge Acceleration
          • Serverless & Containerization
          • Workflow Orchestration & Multi-Tier Architectures
        • Task Statement 2.2: Design highly available and/or fault-tolerant architectures
          • SecureCart Journey
          • AWS Global Infrastructure & Distributed Design
          • Load Balancing & Failover Strategies
          • Disaster Recovery (DR) Strategies & Business Continuity
          • Automation & Immutable Infrastructure
          • Monitoring & Workload Visibility
          • Use Cases
            • Amazon RDS Failover Events & Automatic Failover Mechanism
      • Domain 3
        • Task Statement 3.1: Determine high-performing and/or scalable storage solutions
          • SecureCart Journey
          • Understanding AWS Storage Types & Use Cases
          • Storage Performance & Configuration Best Practices
          • Scalable & High-Performance Storage Architectures
          • Hybrid & Multi-Cloud Storage Solutions
          • Storage Optimization & Cost Efficiency
          • Hands-on Labs & Final Challenge
        • Task Statement 3.2: Design High-Performing and Elastic Compute Solutions
          • SecureCart
          • AWS Compute Services & Use Cases
          • Elastic & Auto-Scaling Compute Architectures
          • Decoupling Workloads for Performance
          • Serverless & Containerized Compute Solutions
          • Compute Optimization & Cost Efficiency
        • Task Statement 3.3: Determine High-Performing Database Solutions
          • SecureCart Journey
          • AWS Database Types & Use Cases
          • Database Performance Optimization
          • Caching Strategies for High-Performance Applications
          • Database Scaling & Replication
          • High Availability & Disaster Recovery for Databases
        • Task Statement 3.4: Determine High-Performing and/or Scalable Network Architectures
          • SecureCart Journey
          • AWS Networking Fundamentals & Edge Services
          • Network Architecture & Routing Strategies
          • Load Balancing for Scalability & High Availability
          • Hybrid & Private Network Connectivity
          • Optimizing Network Performance
          • Site-to-Site VPN Integration for SAP HANA in AWS
        • Task Statement 3.5: Determine High-Performing Data Ingestion and Transformation Solutions
          • SecureCart Journey
          • Data Ingestion Strategies & Patterns
          • Data Transformation & ETL Pipelines
          • Secure & Scalable Data Transfer
          • Building & Managing Data Lakes
          • Data Visualization & Analytics
      • Domain 4
        • Task Statement 4.1: Design Cost-Optimized Storage Solutions
          • SecureCart Journey
          • AWS Storage Services & Cost Optimization
          • Storage Tiering & Auto Scaling
          • Data Lifecycle Management & Archival Strategies
          • Hybrid Storage & Data Migration Cost Optimization
          • Cost-Optimized Backup & Disaster Recovery
        • Task Statement 4.2: Design Cost-Optimized Compute Solutions
          • SecureCart Journey
          • AWS Compute Options & Cost Management Tools
          • Compute Purchasing Models & Optimization
          • Scaling Strategies for Cost Efficiency
          • Serverless & Container-Based Cost Optimization
          • Hybrid & Edge Compute Cost Strategies
          • AWS License Manager
        • Task Statement 4.3: Design cost-optimized database solutions
          • SecureCart Journey
          • AWS Database Services & Cost Optimization Tools
          • Database Sizing, Scaling & Capacity Planning
          • Caching Strategies for Cost Efficiency
          • Backup, Retention & Disaster Recovery
          • Cost-Optimized Database Migration Strategies
        • Task Statement 4.4: Design Cost-Optimized Network Architectures
          • SecureCart Journey
          • AWS Network Cost Management & Monitoring
          • Load Balancing & NAT Gateway Cost Optimization
          • Network Connectivity & Peering Strategies
          • Optimizing Data Transfer & Network Routing Costs
          • Content Delivery Network & Edge Caching
      • Week Nine
        • Final Review Session
        • Final Practice Test
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On this page
  • 🔹 Step 1: Choosing the Right AWS Compute Services
  • 🔹 Step 2: Scaling Strategies for Cost Optimization
  • 🔹 Step 3: Selecting the Right EC2 Pricing Model
  • 🔹 Step 4: Serverless & Containerized Compute for Cost Savings
  • 🔹 Step 5: Monitoring & Managing Compute Costs
  • 🚀 Summary
  1. Study Group
  2. AWS Certified Solutions Architect - Associate
  3. Domain 4
  4. Task Statement 4.2: Design Cost-Optimized Compute Solutions

SecureCart Journey

SecureCart must optimize compute resources to ensure high performance while minimizing operational costs. AWS offers flexible compute options that allow SecureCart to right-size instances, use serverless where possible, and apply scaling strategies to handle dynamic workloads efficiently.

✔ Why SecureCart Needs Cost-Optimized Compute Solutions?

  • Reduces AWS spend by selecting the most cost-effective instance types.

  • Ensures compute resources scale efficiently to match traffic demand.

  • Leverages AWS pricing models (e.g., Spot, Reserved Instances) for savings.

  • Optimizes workloads using serverless and containerized architectures.


🔹 Step 1: Choosing the Right AWS Compute Services

AWS provides various compute services to balance cost, performance, and scalability.

Compute Service

Purpose

Cost Optimization Strategy

SecureCart Use Case

Amazon EC2

Virtual machines in AWS.

Right-size instances, use Savings Plans, Auto Scaling.

SecureCart runs backend API services on EC2 with Auto Scaling.

AWS Lambda

Serverless compute for event-driven workloads.

Pay only for execution time, no idle cost.

Processes SecureCart order transactions and notifications.

Amazon ECS with Fargate

Containerized compute without managing servers.

Auto-scales containers, pay per vCPU/memory used.

Runs SecureCart’s microservices for order management.

Amazon EC2 Spot Instances

Unused EC2 capacity at up to 90% discount.

Run stateless workloads with Spot fleets for savings.

Uses Spot Instances for SecureCart’s batch data processing.

Amazon EC2 Reserved Instances

Long-term compute cost savings with a 1 or 3-year commitment.

Optimize compute spend for predictable workloads.

SecureCart’s payment processing API uses Reserved Instances for stable costs.

✅ Best Practices: ✔ Use EC2 Spot Instances for non-critical, batch, or stateless workloads. ✔ Run microservices in ECS Fargate to avoid provisioning excess capacity. ✔ Leverage AWS Lambda for event-driven, low-maintenance workloads.


🔹 Step 2: Scaling Strategies for Cost Optimization

SecureCart must dynamically adjust compute resources to match traffic demand without over-provisioning.

Scaling Strategy

Purpose

SecureCart Implementation

EC2 Auto Scaling

Adjusts EC2 instance count based on demand.

Scales SecureCart’s backend API servers automatically.

AWS Lambda Auto-Scaling

Scales functions based on event load.

Handles SecureCart’s order processing workload dynamically.

ECS Fargate Auto-Scaling

Adjusts container tasks based on CPU/memory usage.

Ensures SecureCart’s product catalog service scales efficiently.

AWS Compute Optimizer

Recommends instance types based on usage patterns.

Helps SecureCart right-size EC2 instances to avoid overprovisioning.

✅ Best Practices: ✔ Use Auto Scaling to scale compute resources up/down dynamically. ✔ Run lightweight services in AWS Lambda instead of EC2 for efficiency. ✔ Leverage AWS Compute Optimizer to detect underutilized resources.


🔹 Step 3: Selecting the Right EC2 Pricing Model

AWS offers multiple EC2 purchasing options that SecureCart can leverage to balance performance and cost.

Pricing Model

Cost Optimization Strategy

SecureCart Use Case

On-Demand Instances

Pay per second for flexible workloads.

Used for SecureCart’s bursty traffic loads.

Reserved Instances (RIs)

1-3 year commitment, up to 72% savings.

Used for SecureCart’s stable backend services.

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.

✅ Best Practices: ✔ Use a mix of On-Demand, Reserved, and Spot Instances for cost efficiency. ✔ Buy Reserved Instances for workloads with consistent utilization. ✔ Use Spot Instances for non-time-sensitive workloads.


🔹 Step 4: Serverless & Containerized Compute for Cost Savings

Serverless and containerized architectures allow SecureCart to eliminate idle costs and optimize compute utilization.

Service

Cost Optimization Strategy

SecureCart Use Case

AWS Lambda

Pay only for execution time, no idle cost.

Processes SecureCart’s order validation events.

ECS Fargate

No need to manage EC2 instances, pay for CPU/memory.

Runs SecureCart’s shopping cart microservices.

AWS Batch

Serverless compute for batch workloads.

Processes SecureCart’s analytics reports dynamically.

✅ Best Practices: ✔ Use Lambda for lightweight, event-driven workloads. ✔ Run containerized workloads in ECS Fargate to avoid server management. ✔ Leverage AWS Batch for cost-efficient processing of large jobs.


🔹 Step 5: Monitoring & Managing Compute Costs

SecureCart monitors compute usage and costs with AWS tools to optimize spending.

AWS Cost Optimization Tool

Purpose

SecureCart Implementation

AWS Cost Explorer

Tracks compute spending & identifies trends.

Analyzes SecureCart’s compute cost trends.

AWS Compute Optimizer

Recommends right-sizing for compute instances.

Identifies overprovisioned EC2 instances.

AWS Budgets

Sets alerts on compute cost thresholds.

Prevents SecureCart from exceeding budget limits.

✅ Best Practices: ✔ Monitor EC2 utilization using AWS Compute Optimizer to avoid overprovisioning. ✔ Use AWS Cost Explorer to track compute cost trends. ✔ Set up AWS Budgets to prevent unexpected compute cost spikes.


🚀 Summary

✔ Use EC2 Spot Instances for cost savings on non-critical workloads. ✔ Leverage Auto Scaling to dynamically adjust compute resources. ✔ Use Reserved Instances or Savings Plans for stable, long-term workloads. ✔ Replace EC2 with AWS Lambda and Fargate where possible to eliminate idle costs. ✔ Monitor compute spending with AWS Cost Explorer, Compute Optimizer, and Budgets.

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Last updated 2 months ago