It is no news that cloud computing is now the next big thing for every business that wants to grow exorbitantly while saving cost and increase performance.

There are a lot of benefit from adopting cloud computing model with the major ones been reduced cost of operation and maintenance, high performance, security and redundancy. In essence you only pay for computing resources, setup your services and every other thing will be taken care of for you.

Even though the cloud computing providers like AWS might seems to shelve off all your stress at a reduced cost, a well architected cloud infrastructure might cost a lot and even exceed that of on-premise infrastructure. Good news is that, you can still enjoy reduced cost of up to 70% less compared to on-demand instance.

Reserved instances are incredible way of reducing infrastructure with a total budget saving of up to 70%

Reserved instances allows you to reserve instance for long term thereby reducing cost. Instance can be reserved for 12 months (a year) or 36 months (3 years) with options of no option, partial upfront or full upfront. The result is a huge cost reduction which can be up to 70%

A reserved instance can be requested from AWS dashboard under the Reserved instance section.


A scenario based reserved instance cost saving on AWS

Our client needs to deploy one of their critical application on the cloud and we were consulted for this project. We have proposed the infrastructure below with an M5 Instance, 3.1GHz Intel Xeon Platinum, 4 vCPU all of which are put behind an application load balancer with HTTPS termination and are replicated across four (4) availability zone for redundancy. Two M4- Standard RDS instances for Master and Read-Replica with cross Availability Zone Replication. A Cloudfront CDN to serve static contents from s3 bucket for faster media files retrieval.

The total cost of deploying the above infrastructure was estimated to be $906.96 per month. It might not seem much cost for a bigger organization, but for a startup it is costly.

With AWS Reserved Instance

With Reserved instances on a 3 years commitment with no upfront, we noticed the total cost of running cloud services to have dropped to $466.69 per month

This saves the company tons in terms of cost while still following the AWS well architected framework.

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