Table of Contents
Toggle1. Right-Sizing Resources.
Theory:
Right-sizing is a foundational principle in AWS cost optimization that revolves around aligning your cloud resources with actual usage needs, rather than estimated or inflated expectations. In the early stages of cloud adoption, teams often err on the side of caution, provisioning larger instances, higher IOPS, and more memory or storage than necessary to “be safe.”
While this approach minimizes performance risks, it leads to significant resource wastage and bloated cloud bills. Right-sizing tackles this by encouraging data-driven provisioning decisions based on real-world metrics and usage patterns. The theory behind right-sizing hinges on understanding your workload requirements at a granular level CPU utilization, memory consumption, disk I/O, and network throughput over time.
Cloud environments are dynamic, and workloads evolve. A service that required a certain instance type six months ago may now be over-provisioned due to code optimization, traffic drops, or architectural changes. By continuously reviewing usage metrics via tools like Amazon CloudWatch, AWS Cost Explorer, and Compute Optimizer you can identify underutilized instances or volumes.
For instance, a t3.large instance running at 8% CPU utilization for weeks is a strong candidate for downshifting to a t3.medium or even t3.small, cutting costs without impacting performance. Conversely, right-sizing is not just about downsizing—it’s also about scaling up when necessary to avoid hidden inefficiencies such as increased latency, system crashes, or autoscaling churn due to undersized resources.
This principle extends beyond EC2 instances. Elastic Block Store (EBS) volumes, RDS databases, Redshift clusters, and even managed Kubernetes (EKS) nodes can be right-sized. A common pattern in legacy migrations is the “lift and shift” of on-prem workloads into AWS using like-for-like resource configurations, often resulting in massive over-allocation. Right-sizing encourages a re-evaluation of those assumptions.
Additionally, AWS provides granular flexibility in instance families and types burstable, compute-optimized, memory-optimized, and more allowing you to fine-tune the balance between cost and performance. For example, compute-heavy workloads may perform better and more efficiently on c6g instances than on general-purpose t-series.
Moreover, right-sizing is not a one-time task it should be a continuous practice embedded into DevOps and FinOps workflows. Set periodic review cycles, automate usage reporting, and empower engineering teams to take action. Infrastructure as Code (IaC) tools like Terraform or AWS CloudFormation can make adjustments predictable and repeatable.
It’s also wise to apply right-sizing to development, staging, and testing environments, which are frequently left running at full capacity despite low or intermittent usage. Introducing instance schedules or temporary scaling policies can yield dramatic savings.
Right-sizing must also consider performance baselines and risk tolerance. Not every service can afford occasional latency spikes or throttling, so ensure you test any changes thoroughly before making them permanent. Implement blue-green deployments or use staging environments to validate resized configurations.
Tagging resources with ownership and purpose can also help prioritize which systems need close monitoring and which are safe to adjust. In multi-team environments, enforce accountability by integrating cost visibility into dashboards or team OKRs.
Ultimately, the theory behind right-sizing is simple: spend only on what you need, when you need it. But its real power lies in transforming cloud cost management from a reactive activity into a proactive, strategic function. By aligning resource consumption with actual demand, organizations unlock both operational efficiency and financial discipline.
In a mature cloud ecosystem, right-sizing becomes second nature an automatic reflex rather than an emergency measure. And when done well, it’s not uncommon to reduce infrastructure costs by 10% to 20% without compromising reliability, security, or performance.
How to Apply:
- Analyze CPU, memory, and disk usage with CloudWatch, AWS Compute Optimizer, or third-party tools like CloudHealth.
- Switch from t3.large to t3.medium where appropriate.
- Scale down EBS volumes that are underutilized.
Estimated Savings:
10–20% of EC2 and EBS costs.

2. Use Reserved Instances & Savings Plans.
Theory:
The theory behind Reserved Instances (RIs) and Savings Plans in AWS is rooted in the principle of predictable consumption. While cloud computing is celebrated for its elasticity, not all workloads need to scale dynamically. Many systems such as backend APIs, production databases, load balancers, and internal tools run consistently, 24/7, with fairly stable resource consumption. For these long-term, steady-state workloads, paying on-demand pricing can be highly inefficient.
AWS introduced Reserved Instances and, later, Savings Plans, as mechanisms to reward long-term commitments with substantial discounts often ranging from 30% to 72%, depending on the term length, payment model, and resource type.
The core idea is to trade flexibility for cost efficiency. With Reserved Instances, you commit to using a specific instance type in a specific region for either 1 or 3 years.
In return, AWS drastically reduces the hourly rate compared to on-demand pricing. These can be further customized by selecting Standard RIs which are less flexible but offer deeper savings or Convertible RIs, which allow changes to instance families, OS, or tenancy types during the term.
On the other hand, Savings Plans offer more flexibility by decoupling the discount from specific instance types. With a Savings Plan, you commit to a consistent amount of usage (measured in $/hr) across EC2, Fargate, and Lambda, and AWS automatically applies the discount to matching usage.
The theoretical advantage of this approach lies in cost predictability and automatic discount application. Savings Plans in particular align well with the DevOps philosophy of automation and abstraction. Engineers don’t need to worry about instance types or planning each deployment to fit a specific RI; the Savings Plan applies regardless of changes to instance size, OS, region, or compute engine provided it fits the hourly commitment. This flexibility allows teams to maintain agility while still reaping the benefits of reduced costs.
From a strategic standpoint, using RIs and Savings Plans signals a mature cloud operations model. It implies that your organization has enough visibility into workload behavior, traffic patterns, and infrastructure growth to make long-term decisions. It also suggests that you’re shifting from reactive provisioning to proactive planning.
This mindset is critical not only for cost control but for broader cloud governance and financial forecasting. Finance teams appreciate the predictability, and engineering leaders gain the flexibility to scale confidently, knowing a portion of compute costs are already optimized.
Implementing these pricing models effectively requires thoughtful analysis. Start by identifying workloads with predictable baselines such as databases, APIs, internal schedulers, or data pipelines that run consistently throughout the day or month.
Use AWS Cost Explorer, Compute Optimizer, and tools like Cloud Health or Apptio Cloud ability to forecast and model utilization. A hybrid approach often works best: commit 50–70% of your baseline compute to Savings Plans or RIs, and leave the rest on-demand to support spikes, experiments, or temporary projects. This balance preserves agility while optimizing core workloads.
It’s also important to choose the right payment model. AWS offers three: All Upfront (highest savings), Partial Upfront, and No Upfront (least savings, but most cash-flow friendly).
Organizations with strong CapEx flexibility may benefit from All Upfront commitments, while startups or growing teams may prefer more liquid options. AWS even provides an RI Marketplace for trading unused standard RIs, offering a partial safety net if your infrastructure strategy changes mid-term.
From a theoretical perspective, RIs and Savings Plans represent the evolution of cloud economics from unpredictable and flexible to planned and cost-aware.
They are not a sign of rigidity but rather of cloud financial maturity a key component of FinOps best practices. Instead of merely reacting to monthly bills, teams adopting these models forecast, plan, and control their cloud expenditure with discipline.
The savings generated can be reinvested into innovation new features, performance improvements, or broader infrastructure coverage without increasing the overall cloud spend.
Reserved Instances and Savings Plans enable you to turn cloud costs from a volatile expense into a predictable investment. When applied strategically, they transform cloud billing from a point of concern into a competitive advantage. The key lies in understanding workload patterns, committing intelligently, and maintaining just enough flexibility to accommodate growth and change.
How to Apply:
- Purchase Compute Savings Plans for EC2, Lambda, and Fargate usage.
- Use Reserved Instances (RIs) for RDS, Redshift, or ElastiCache when usage is stable.
Considerations:
- Workload Predictability – Only commit to RIs or Savings Plans for workloads with stable and predictable usage. Dynamic or experimental workloads are better suited for on-demand or spot pricing.
- Commitment Period – Choose between 1-year or 3-year terms. Longer terms offer better discounts but come with higher risk if your architecture or needs change significantly.
- Payment Options – AWS offers All Upfront, Partial Upfront, and No Upfront options. The more you pay upfront, the greater the savings—up to 72% compared to on-demand.
- Flexibility Needs
- Standard RIs are rigid (specific instance family, region, OS, and tenancy).
- Convertible RIs offer flexibility to switch attributes but with slightly lower savings.
- Savings Plans are more flexible overall and can apply across regions and compute services (EC2, Fargate, Lambda).
Coverage vs. Utilization
Buying too many RIs or overcommitting in Savings Plans may lead to underutilization, negating your savings. Aim to cover 50–70% of your consistent baseline, not 100%.
Estimated Savings:
30–72% compared to on-demand pricing.
3. Eliminate Idle and Zombie Resources
Theory:
The theory behind eliminating idle and zombie resources in AWS centers on the concept of resource efficiency and lifecycle awareness. In the cloud, where provisioning is instant and scale is elastic, it’s surprisingly easy to spin up resources that are never properly shut down, tracked, or even used.
These forgotten or underutilized resources often called “zombie” resources continue to generate charges indefinitely, slowly draining your cloud budget without adding any value. Idle resources, while still technically in use, operate at low or zero utilization for extended periods, offering little return on investment.
In both cases, these resources represent cloud waste, the opposite of cost-efficient computing. Eliminating them is one of the most immediate and high-impact cost optimization actions a team can take, especially in growing or multi-team environments where cloud sprawl is common.
In practice, idle and zombie resources take many forms. Common examples include EC2 instances running at <10% CPU utilization, EBS volumes left unattached to any instance, old snapshots, idle RDS instances, unused Load Balancers, Elastic IPs not associated with any running instance, orphaned ENIs (Elastic Network Interfaces), and even abandoned S3 buckets.
These often originate from abandoned experiments, forgotten staging environments, or poorly decommissioned infrastructure after migrations or project completions. The ephemeral nature of cloud infrastructure makes it easy to forget what’s been provisioned. Without proactive management, these resources persist and accumulate silently in the background.
The theoretical foundation of this practice aligns with the broader principles of infrastructure hygiene and resource governance. In a traditional data center, unused resources are physically visible racks, servers, storage. In the cloud, these invisible assets exist as billable line items that don’t raise red flags unless you look for them. As such, visibility becomes critical.
Organizations must treat cloud resources as assets with financial and operational responsibility. By eliminating idle and zombie resources, you are not just cutting costs you are also reducing your attack surface, improving security posture, and simplifying infrastructure maintenance.
Automation plays a key role in this theory. Manual audits are time-consuming and error-prone, especially across large, multi-account AWS environments.
AWS provides tools like Trusted Advisor, Cost Explorer Resource Optimization Reports, Compute Optimizer, and CloudWatch metrics to help identify low-utilization or idle resources. Tagging strategies also become critical by enforcing tags such as Owner, Environment, Project, or Expiration Date, teams can automate lifecycle rules and set deletion triggers.
AWS Config and Lambda scripts can be used to periodically check for unused assets and either notify stakeholders or automatically terminate them. With a solid tagging and governance framework in place, automation can enforce policies at scale.
Eliminating zombie resources is especially important in non-production environments such as dev, test, QA, or sandbox, where teams often forget to clean up after themselves.
By scheduling these environments to shut down during off-hours or implementing ephemeral infrastructure using Infrastructure as Code (IaC) and CI/CD pipelines, organizations can drastically reduce waste. For example, a QA environment that runs only during business hours can be shut down nightly and over weekends using AWS Instance Scheduler, reducing costs by up to 70% without impacting delivery timelines.
Another critical angle is organizational culture. The elimination of idle and zombie resources is not just a technical task it’s a behavior. Teams need awareness and incentives to care about cloud cleanliness. This is where FinOps principles come into play. By democratizing cost data and encouraging engineers to review their own usage, teams become more accountable.
Gamifying cleanup efforts or integrating cost reviews into sprint retrospectives can shift mindsets from “someone else’s problem” to a shared responsibility model.
From a theoretical standpoint, eliminating idle and zombie resources aligns with lean cloud operations, cost transparency, and sustainable architecture. It embodies the idea that efficient cloud use isn’t about simply using the most powerful resources, but using the right resources for the right duration with clear intent.
The cloud offers the promise of cost efficiency, but only if teams actively manage what they consume. Left unmanaged, the convenience of the cloud becomes its own liability.
removing idle and zombie resources is one of the lowest-effort, highest-impact ways to reduce AWS costs quickly. It teaches teams to treat infrastructure as disposable, trackable, and measurable. It promotes a culture of accountability, agility, and financial discipline.
And in an era where cloud usage is under increasing scrutiny from both finance and engineering leaders, this simple but powerful practice remains a cornerstone of responsible cloud management.
How to Apply:
- Use scripts or AWS Trusted Advisor to identify idle assets.
- Set lifecycle policies to clean up snapshots and logs.
- Implement tagging strategies to track ownership and usage.
Estimated Savings:
5–10% by simply cleaning up.
4. Leverage Auto Scaling and Spot Instances
Theory:
The theoretical foundation of leveraging Auto Scaling and Spot Instances in AWS is rooted in the principle of dynamic elasticity scaling resources to precisely match demand, and opportunistically taking advantage of unused cloud capacity at steep discounts.
In traditional infrastructure environments, over-provisioning is the norm. Organizations purchase enough hardware to handle peak loads, even if those peaks occur for only a few hours a month.
In the cloud, however, the model shifts from static provisioning to real-time adjustment, where compute resources can be automatically scaled in or out based on live metrics such as CPU utilization, request volume, or custom business logic.
This elasticity not only ensures performance during demand spikes but also reduces unnecessary cost during idle periods, enabling organizations to pay only for what they use.
Auto Scaling is AWS’s native mechanism for managing this dynamic provisioning. Through Auto Scaling Groups (ASGs), you can define policies that automatically launch or terminate EC2 instances based on thresholds, schedules, or predictive algorithms.
The theoretical appeal lies in removing human intervention from capacity management. Rather than relying on engineers to manually scale infrastructure, the system self-adjusts, maintaining the delicate balance between performance and cost.
This is especially valuable for workloads with unpredictable or cyclical traffic e-commerce sites, SaaS platforms, API gateways, or event-driven processing systems. Furthermore, integrating Auto Scaling with Elastic Load Balancing (ELB) ensures that new instances are immediately utilized, maintaining seamless user experiences while optimizing backend capacity.
On the other hand, Spot Instances represent AWS’s mechanism for selling excess compute capacity at up to 90% discounts compared to on-demand pricing. From a theoretical standpoint, Spot Instances exemplify efficient market economics in cloud infrastructure AWS monetizes idle capacity, and customers gain access to compute resources at a fraction of the cost.
The caveat, of course, is volatility: Spot Instances can be interrupted with little warning when AWS needs the capacity back. But for fault-tolerant, stateless, or batch-oriented workloads like CI/CD pipelines, data analysis jobs, image rendering, or even auto-scaled microservices this is an acceptable trade-off. By architecting for interruption tolerance using containers, retries, checkpoints, or instance diversification strategies, teams can exploit this pricing model to drastically reduce compute costs.
Combining Auto Scaling with Spot Instances brings the best of both worlds cost efficiency and resilient scalability. Modern AWS architectures often implement mixed instance policies, where ASGs are configured to launch a blend of On-Demand, Reserved, and Spot Instances.
This blend allows the infrastructure to scale with demand while always seeking the most cost-effective option. Spot Fleets and EC2 Fleet APIs further enhance this strategy by distributing requests across multiple instance types and Availability Zones, increasing the likelihood of sustained Spot capacity.
From a theoretical lens, this approach maximizes supply flexibility and price arbitrage, using automation to dynamically chase the lowest viable cost for each workload.
The implications of this model extend beyond just EC2. AWS services like Fargate, EKS (Kubernetes), and EMR also support Spot capacity, enabling containerized or big data environments to scale cost-effectively without manual tuning.
For example, Kubernetes clusters can be configured with auto-scaling node groups that prioritize Spot capacity, seamlessly absorbing scale-out events at minimal expense. When paired with AWS tools like Auto Scaling Lifecycle Hooks, CloudWatch alarms, and Event Bridge rules, you can build sophisticated cost-aware architectures that adapt in real-time to changing demand patterns.
The true power of this strategy lies in its philosophical shift: from capacity planning to capacity automation. Organizations no longer need to guess at future resource needs or leave buffer capacity sitting idle “just in case.” Instead, they adopt an adaptive, responsive model that scales precisely when needed and uses Spot Instances as a financial optimization layer.
This creates a fundamentally leaner operating model, where compute cost scales linearly with actual usage, rather than worst-case estimates. The result is not just savings often 20–40% for compute-heavy applications but also improved engineering agility and resilience.
Ultimately, leveraging Auto Scaling and Spot Instances reflects a mature, cloud-native mindset. It prioritizes automation over manual oversight, and efficiency over brute-force provisioning.
It requires engineering teams to build for flexibility, to embrace ephemeral infrastructure, and to architect for graceful failure. But the payoff is significant: better performance at lower cost, and a cloud strategy that adapts to change, rather than resisting it. In a fast-moving digital landscape, that adaptability is not just a cost advantage it’s a competitive edge.
How to Apply:
- Use Auto Scaling Groups (ASGs) with policies tied to CPU or custom metrics.
- Shift stateless, fault-tolerant workloads (like CI/CD pipelines or batch jobs) to Spot Instances, which can be up to 90% cheaper.
Estimated Savings:
20–40% on dynamic or batch workloads.
5. Optimize Data Transfer and Storage
Theory:
At the core of cloud efficiency lies not just compute optimization but also smart management of data how it’s stored, accessed, transferred, and retained.
In AWS, storage and data transfer can account for a significant portion of monthly bills, especially in data-heavy environments like media processing, analytics, machine learning, and IoT.
The theory behind optimizing these costs is based on two principles: cost-awareness of data gravity and intelligent data lifecycle management. “Data gravity” refers to the natural tendency of data to attract more services and applications as it grows.
The larger and more distributed the data becomes, the more expensive and complex it is to manage especially when data moves across regions, Availability Zones (AZs), or out of AWS entirely. Therefore, keeping data close to where it is used most frequently ideally within the same region and AZ is a critical cost-saving strategy.
In AWS, not all data transfer is created equal. Transfers within the same Availability Zone are free, but cross-AZ traffic, cross-region replication, and data egress to the internet incur additional charges. For example, moving logs between services in different regions can rack up unexpected costs.
Many teams unknowingly generate high egress bills by serving static assets directly from EC2 instead of leveraging Amazon CloudFront, which caches content closer to users and significantly reduces data out charges.
Similarly, accessing S3 buckets from EC2 instances in another region or VPC can incur unnecessary inter-region or VPC peering transfer costs. From a theoretical standpoint, the goal is to minimize “distance” in the data pipeline co-locate compute and storage resources, use VPC Endpoints to avoid NAT Gateway charges, and apply caching wherever possible to reduce repetitive transfers.
On the storage side, AWS offers a tiered model designed to match data access patterns with storage pricing. The theory here hinges on data lifecycle management recognizing that not all data needs to live in high-performance, high-cost storage forever.
Services like S3 Intelligent-Tiering, S3 Lifecycle Policies, and S3 Glacier allow organizations to transition objects automatically based on age or access frequency. Hot data frequently accessed or critical to applications may live in the Standard tier, but cold data, like logs older than 90 days or backups, can be moved to Infrequent Access or archived into Glacier and Deep Archive, cutting storage costs by over 80%.
A thoughtful lifecycle policy reflects both storage economics and operational awareness, ensuring that performance-critical data is always available, while legacy or dormant data is still retained at minimal cost.
Optimizing storage also involves understanding and choosing the right service and configuration. For example, EBS volumes should be right-sized and use appropriate types gp3 instead of gp2 for better performance per dollar.
Unused volumes and old snapshots often linger long after their relevance has ended, especially after temporary projects or instance terminations. Periodic cleanup of unattached volumes and unused AMIs is a basic but impactful cost-saving action.
Similarly, for high-throughput use cases, Amazon EFS and FSx offer scalable file systems, but costs can balloon if files are rarely accessed yet still reside in performance tiers. Intelligent Tiering and access logs help detect such patterns, enabling smart reconfiguration.
In environments with large-scale analytics or big data processing, tools like Amazon Athena or Redshift Spectrum enable querying data directly in S3 without duplicating it into separate databases reducing both storage and ETL overhead.
This aligns with the theoretical goal of minimizing data redundancy and keeping data storage “lightweight” but still accessible.
For edge or hybrid workloads, AWS also provides Snow Family devices and DataSync, which optimize the way data is ingested and moved into the cloud, again reducing transfer complexity and cost. The broader takeaway is this: efficient data management is not just about storage format or location, but about building smart, intentional pathways for data movement.
The culture behind optimizing storage and transfer costs is grounded in visibility and automation. AWS tools like CloudWatch, Cost Explorer, S3 Storage Lens, and VPC Flow Logs help teams understand how, when, and where data is being accessed and transferred.
Once the patterns are known, automation via lifecycle rules, caching policies, and routing configurations allows for real-time optimization without manual intervention. Organizations that bake these principles into their architecture design and DevOps processes consistently reduce costs while improving performance and resilience.
Ultimately, optimizing data transfer and storage is about recognizing that cloud storage is not infinite or free it’s an economic and architectural trade-off.
The goal is to architect with intentionality: place data where it is used, move it only when needed, retain it only as long as it’s valuable, and do all of this automatically. When applied consistently, these practices lead to not just cost savings often 10–30% or more but also to cleaner, more scalable, and more efficient cloud environments.
How to Apply:
- Use S3 Intelligent-Tiering or S3 Glacier for archival.
- Enable VPC Endpoints to reduce NAT Gateway costs.
- Avoid unnecessary data replication across regions.
Estimated Savings:
10–30% on storage and bandwidth costs.
6. Automate with Cost Anomaly Detection and Budgets
Theory:
The theory behind automating with Cost Anomaly Detection and Budgets in AWS is grounded in the idea that proactive monitoring leads to financial control, while reactive cost management often results in surprises and waste.
In complex cloud environments, where hundreds or thousands of resources can be spun up across multiple accounts, regions, and services, it becomes nearly impossible to manually track every cost trend or billing anomaly. AWS operates on a pay-as-you-go model, which is highly flexible but also vulnerable to misconfigurations, usage spikes, and runaway processes.
A single misdeployed resource, infinite loop, or unmonitored data transfer can lead to a significant bill in a matter of hours. This is where automated guardrails in the form of budgets and anomaly detection come into play.
By using AWS Budgets, teams can define cost thresholds for services, projects, environments, or entire accounts. When actual or forecasted costs approach these thresholds, alerts can be automatically triggered via email or integrated with tools like Amazon SNS, Slack, or ticketing systems.
This allows teams to act before overspending occurs, not after. Meanwhile, AWS Cost Anomaly Detection uses machine learning to continuously scan account activity and spending patterns.
It learns what “normal” looks like, and flags deviations such as sudden spikes in EC2 usage, data transfer, or third-party SaaS subscriptions. Instead of relying on engineers or finance staff to comb through billing reports, anomaly detection automates the task, providing timely insights into potential issues.
The theoretical advantage of this automation lies in early visibility and operational feedback loops. Budgets create financial discipline, while anomaly detection acts as a real-time watchdog, alerting you to problems before they escalate.
Together, they shift cost management from a monthly audit process to a continuous, real-time practice embedded in the development and deployment lifecycle. In mature cloud organizations, this kind of financial automation is not optional it’s a fundamental part of FinOps culture, where cost accountability is distributed across engineering and finance teams.
It empowers engineers to own their spend, enables finance to forecast with accuracy, and allows leadership to make informed scaling decisions. Ultimately, automated cost controls ensure that agility in the cloud doesn’t come at the expense of financial stability.
How to Apply:
- Use AWS Budgets to set thresholds and notifications.
- Enable Cost Anomaly Detection to catch spikes early.
- Set up Slack or email alerts via SNS.
Estimated Impact:
Helps prevent unexpected charges before they snowball.
7. Apply FinOps Culture Across Teams
Theory:
At its core, FinOps (Cloud Financial Operations) is not just about saving money it’s about creating a culture where engineering, finance, and business teams collaborate to manage cloud usage and costs in real time. The theory behind applying FinOps across teams is based on shared accountability, where everyone involved in cloud operations takes responsibility for financial outcomes.
Traditional IT budgeting models break down in the cloud due to variable usage and dynamic pricing. FinOps fills this gap by embedding financial awareness directly into engineering workflows. Rather than treating cloud bills as a finance-only concern, FinOps encourages visibility and ownership at every level from developer to CFO. Teams use real-time cost data to make informed architectural decisions, balancing speed, performance, and cost.
This cross-functional alignment enables faster decision-making, more predictable budgeting, and continuous optimization. FinOps also emphasizes automation, tagging, and reporting as core disciplines, ensuring that cloud costs are transparent and traceable.
When applied successfully, FinOps transforms cloud cost management from a reactive cleanup effort into a strategic function. It empowers innovation while maintaining control, fostering a culture where every dollar spent drives business value.
How to Apply:
- Share cost reports with dev teams.
- Create shared KPIs around cloud efficiency.
- Promote a culture of accountability using tags and cost allocation reports.

Summary of Theoretical Savings
| Strategy | Potential Savings |
|---|---|
| Right-Sizing Resources | 10–20% |
| Reserved Instances/Savings Plans | 30–72% (on specific workloads) |
| Cleaning Idle Resources | 5–10% |
| Spot Instances & Auto Scaling | 20–40% |
| Storage & Data Transfer Optimization | 10–30% |
| Cost Monitoring & FinOps Practices | Varies; preventative |
When applied together, these strategies can lead to a 30–50% overall reduction in monthly AWS costs, depending on the maturity of your cloud environment.



