How to optimize costs in cloud computing?
Our clients, whom we support in cloud migration, are often surprised when they discover that monthly AWS expenses can slowly but steadily increase even when traffic levels remain the same. That’s why we always implement FinOps processes as part of our collaboration. We start with the most visible services, but real savings come when you start seeing the cloud as a dynamic ecosystem.
Based on numerous cloud environment analyses, we’ve gathered our knowledge and prepared a guide that shows you, step by step, how to take control of your cloud costs, recover your budget, and implement proven optimization mechanisms.
What should you verify first?
Before diving into detailed optimization, it’s worth building a strong foundation collecting key information and evaluating the current state of your environment. Here are five steps to begin with:
Complete tagging review
Check whether all resources (Amazon EC2, Amazon RDS, Amazon S3, Amazon EBS, AWS Lambda, Amazon VPC) have essential tags assigned: Project, Owner, Environment.
Use AWS Config to detect missing tags right from the start—this helps you identify resources not linked to any project or team.
Budget and cost alert settings
Verify whether AWS Budgets are defined for your key projects and environments (production, testing, development).
Check whether the alert thresholds (e.g., 50%, 80%, 100%) and notification channels (email, Amazon SNS, Slack) are correctly configured.
Dashboards and reports in AWS Cost Explorer
In AWS Cost Explorer, go to the Reports section and use prebuilt reports like Monthly costs by service, by region, or by tag to review cost breakdowns. Also, check time periods—compare costs over the past 3-6 months to detect any unusual increases.
Identify underutilized resources
In Amazon CloudWatch, check which Amazon EC2 instances and Amazon RDS databases are running below 20-30% utilization (CPU, memory, IOPS). Review Amazon EBS volumes and unattached Elastic IP addresses that haven’t shown activity in over 30 days.
Review your cloud purchase model e.g. reservation commitments
Check your current Reserved Instances and AWS Savings Plans do they reflect your actual usage?
Verify expiration dates and utilization levels to prepare for renewal or adjustment.
Only with a full picture of tagging, budgets, reporting and actual resource usage can you proceed to deeper optimization steps like rightsizing or automation of test environment schedules.
Download the practical guide and reclaim your budget
If you’re ready to move from diagnosis to action and want a detailed savings plan, download our “AWS Cost Optimizer” resource. This comprehensive document includes 21 cost control checkpoints from identifying forgotten instances to optimizing Amazon S3 storage and scheduling non-production environments. With ready-made tasks and expert tips, you’ll be able to implement changes that deliver real savings immediately.
Download now and see how much you can gain: https://finops.lcloud.pl/cost-optimizer
Summary
Cost optimization in AWS cloud is a process based on analysis, action, and continuous improvement. With a systematic FinOps approach, you’ll gain full control over expenses, eliminate unnecessary costs, and recover your budget for developing key projects.
If you need help with cloud cost optimization or have questions about FinOps, feel free to reach out: kontakt@lcloud.pl. We’ll be happy to support you.
