AWS Cost Optimization Best Practices

Author: OpsBoardPG

Date: March 2026

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Introduction

Cloud costs can grow rapidly if infrastructure is not optimized. Organizations must implement governance, monitoring and automation to control AWS spending.

Right Size Your Instances

Use AWS Compute Optimizer and CloudWatch metrics to analyze instance utilization and reduce overprovisioned resources.

Use Reserved Instances

Reserved instances and Savings Plans can reduce EC2 costs by up to 70%.

Automate Infrastructure Shutdown

Non-production workloads should be automatically stopped during non-working hours using Lambda or Instance Scheduler.

Conclusion

Cost optimization is a continuous process. Organizations should monitor infrastructure utilization and automate cost governance.