95. AWS Cost Management Service

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2023-12-01

AWS Billing & AWS Cost Management

The AWS Billing console contains features to organize and report your AWS cost and usage based on user-defined methods, and manage your billing and control costs.
The Billing console works closely with the AWS Cost Management console so you can holistically manage your costs.
The AWS Cost Management console has features that you can use for budgeting and forecasting costs and methods for you to optimize your pricing to reduce your overall AWS bill.
The Billing console contains resources to manage your ongoing payments, while the AWS Cost Management console resources are designed to help you optimize your future costs.
With the AWS Cost Management console and the Billing console, you can do the following tasks:

Use cases	Description	AWS Cost Management feature names	Billing console feature names
Organize	Construct your cost allocation and governance foundation with your own tagging strategy.	-	AWS Cost Categories AWS Cost Allocation Tags
Report	Raise awareness and accountability of your cloud spend with the detailed, allocable cost data.	AWS Cost Explorer	AWS Cost and Usage Reports
Access	Track billing information across the organization in a consolidated view.	-	AWS Consolidated Billing AWS Purchase Order Management AWS Credits
Control	Establish effective governance mechanisms with the right guardrails in place.	AWS Cost Anomaly Detection	-
Forecast	Estimate your resource utilization and spend with forecast dashboards that you create.	AWS Cost Explorer AWS Budgets	-
Budget	Keep your spend in check with custom budget threshold and auto alert notification.	AWS Budgets AWS Budgets Actions	-
Purchase	Leverage free trials and programmatic discounts based on your workload pattern and needs.	Savings Plans AWS Reserved Instances	AWS Free Tier
Rightsize	Align your service allocation size to your actual workload demand.	Rightsizing Recommendations	-
Inspect	Stay up-to-date with your resource deployment and cost optimization opportunities.	AWS Cost Explorer	-

AWS Cost and Usage Reports

The AWS Cost and Usage Reports (AWS CUR) contains the most comprehensive set of cost and usage data available
You can use Cost and Usage Reports to publish your AWS billing reports to an Amazon Simple Storage Service (Amazon S3) bucket that you own.
You can download your report from the Amazon S3 console, query the report using Amazon Athena, or upload the report into Amazon Redshift or Amazon QuickSight.
You can receive reports that break down your costs by the hour, day, or month, by product or product resource, or by tags that you define yourself.
AWS updates the report in your bucket once a day in comma-separated value (CSV) format.
AWS Cost and Usage Reports tracks your AWS usage and provides estimated charges associated with your account.
You can customize the AWS Cost and Usage Reports to aggregate the information either by the hour, day, or month.
AWS Cost and Usage Reports can do the following:
- Deliver report files to your Amazon S3 bucket
- Update the report up to three times a day
- Create, retrieve, and delete your reports using the AWS CUR API Reference

AWS Cost Categories

You can use AWS Cost Categories to map your AWS costs and usage into meaningful categories.
With cost categories, you can organize your costs using a rule-based engine.
The rules that you configure organize your costs into categories.
Companies commonly have multiple perspectives on their business. These can include projects, cost centers, and applications. You can create cost categories to match these perspectives.

AWS Cost Allocation Tags

You can use tags to organize your resources, and cost allocation tags to track your AWS costs on a detailed level.
After you activate cost allocation tags, AWS uses the cost allocation tags to organize your resource costs on your cost allocation report, to make it easier for you to categorize and track your AWS costs.
AWS provides two types of cost allocation tags, an AWS generated tags and user-defined tags: You must activate both types of tags separately before they can appear in Cost Explorer or on a cost allocation report.

AWS Consolidated Billing

You can use the consolidated billing feature in AWS Organizations to consolidate billing and payment for multiple AWS accounts or multiple Amazon Internet Services Pvt. Ltd (AISPL) accounts.
Every organization in AWS Organizations has a management account that pays the charges of all the member accounts.
Consolidated billing has the following benefits:
- One bill – You get one bill for multiple accounts.
  - For billing purposes, the consolidated billing feature of AWS Organizations treats all the accounts in the organization as one account.
  - This means that all accounts in the organization can receive the hourly cost benefit of Reserved Instances that are purchased by any other account.
  - With consolidated billing, AWS combines the usage from all accounts to determine which volume pricing tiers to apply, giving you a lower overall price whenever possible.
- Easy tracking – You can track the charges across multiple accounts and download the combined cost and usage data.
- Combined usage – You can combine the usage across all accounts in the organization to share the volume pricing discounts, Reserved Instance discounts, and Savings Plans. This can result in a lower charge for your project, department, or company than with individual standalone accounts.
- No extra fee – Consolidated billing is offered at no additional cost.
If you manage an organization in AWS Organizations, you can use consolidated billing to view aggregated usage costs for accounts in the organization. Consolidated billing can also help you reduce those costs.

AWS Cost Explorer

AWS Cost Explorer is a tool that enables you to view and analyze your costs and usage.
You can explore your usage and costs using the main graph, the Cost Explorer cost and usage reports, or the Cost Explorer RI reports.
You can view data for up to the last 12 months, forecast how much you're likely to spend for the next 12 months, and get recommendations for what Reserved Instances to purchase.
You can enable Cost Explorer for your account using this procedure on the Billing and Cost Management console.
You can't enable Cost Explorer using the API
Cost Explorer provides default reports, but also enables you to change the filters and constraints used to create the reports.
Cost Explorer also provides you ways to save the reports that you made.
You can save them as a bookmark, download the CSV file, or save them as a report.

AWS Cost Anomaly Detection

AWS Cost Anomaly Detection is an AWS Cost Management feature that uses machine learning to continuously monitor your cost and usage to detect unusual spends.
Using AWS Cost Anomaly Detection includes the following benefits:
- Receive alerts individually in aggregated reports. You can receive alerts in an email or an Amazon SNS topic.
- Evaluate your spend patterns using machine learning methods to minimize false positive alerts.
- Analyze and determine the root cause of the anomaly, such as account, service, Region, or usage type that is driving the cost increase.
- Configure how you need to evaluate your costs. You can choose whether you want to analyze all of your AWS services independently, or by member accounts, cost allocation tags, or cost categories.

AWS Budgets

You can use AWS Budgets to track and take action on your AWS cost and usage.
You can use AWS Budgets to monitor your aggregate utilization and coverage metrics for your Reserved Instances (RIs) or Savings Plans.
AWS Budgets information is updated up to three times a day. Updates typically occur 8–12 hours after the previous update.
You can create the following types of budgets:
- Cost budgets – Plan how much you want to spend on a service.
- Usage budgets – Plan how much you want to use one or more services.
- RI utilization budgets – Define a utilization threshold and receive alerts when your RI usage falls below that threshold. This lets you see if your RIs are unused or under-utilized.
- RI coverage budgets – Define a coverage threshold and receive alerts when the number of your instance hours that are covered by RIs fall below that threshold. This lets you see how much of your instance usage is covered by a reservation.
- Savings Plans utilization budgets – Define a utilization threshold and receive alerts when the usage of your Savings Plans falls below that threshold. This lets you see if your Savings Plans are unused or under-utilized.
- Savings Plans coverage budgets – Define a coverage threshold and receive alerts when your Savings Plans eligible usage that is covered by Savings Plans fall below that threshold. This lets you see how much of your instance usage is covered by Savings Plans.
You can set up optional notifications that warn you if you exceed, or are forecasted to exceed, your budgeted amount for cost or usage budgets or fall below your target utilization and coverage for RI or Savings Plans budgets.
A budget is only visible to users with access to the account that created the budget, and with access to the budget itself
With AWS Budgets, you can configure a report to monitor the performance of your existing budgets on a daily, weekly, or monthly cadence and deliver that report to up to 50 email addresses.
You can use AWS Budgets to run an action on your behalf when a budget exceeds a certain cost or usage threshold.
- Your available actions include applying an IAM policy or a service control policy (SCP)

Savings Plans

Savings Plans offer a flexible pricing model that provides savings on AWS usage.
You can save up to 72 percent on your AWS compute workloads.
Savings Plans provide savings beyond On-Demand rates in exchange for a commitment of using a specified amount of compute power (measured per hour) for a one or three year period.
When you sign up for Savings Plans, the prices you'll pay for usage stays the same through the plan term.
You can pay for your commitment using All Upfront, Partial upfront, or No upfront payment options.
Compute Savings Plans provide the most flexibility and prices that are up to 66 percent off of On-Demand rates.
- These plans automatically apply to your EC2 instance usage, regardless of instance family, instance sizes, Region, operating system, or tenancy.
- They also apply to your Fargate and Lambda usage.
EC2 Instance Savings Plans provide savings up to 72 percent off On-Demand, in exchange for a commitment to a specific instance family in a chosen AWS Region
SageMaker Savings Plans provide savings up to 64 percent off of On-Demand rates.
- These plans automatically apply to your SageMaker instance usage regardless of instance family, instance sizes, Region, and component

Reserved Instance Recommendations

If you enable Cost Explorer, you automatically get Amazon EC2, Amazon RDS, ElastiCache, OpenSearch Service, and Amazon Redshift Reserved Instance (RI) purchase recommendations that could help you reduce your costs.
Cost Explorer recommendations are based on a single account or organization usage of the past seven, 30, or 60 days.
Cost Explorer updates your recommendations at least once every 24 hours.

Rightsizing Recommendations

Rightsizing recommendations analyze your Amazon EC2 resources and usage to show opportunities for how you can lower your spending.
You can see all of your underutilized Amazon EC2 instances across member accounts in a single view to immediately identify how much you can save
Cost Explorer provides a couple of tools to help you understand where your greatest RI costs are and how you can potentially lower your costs.
Cost Explorer does this by providing you with an overview of your current reservations, showing your RI utilization and coverage, and calculating recommended RIs that could save you money if you purchase them.
You can use the RI reports page in the Cost Explorer console to see how many reservations you have, how much your reservations are saving you compared to similar usage of On-Demand Instances, and how many of your reservations are expiring this month.

AWS Pricing Calculator

AWS Pricing Calculator lets you explore AWS services and create an estimate for the cost of your use cases on AWS.
You can model your solutions before building them, explore the price points and calculations behind your estimate, and find the available instance types and contract terms that meet your needs.
This enables you to make informed decisions about using AWS.
AWS Pricing Calculator is free for use.
To generate an estimate, create an estimate and add services or groups and services to your estimate.
You can save each estimate's unique link to share or revisit directly through your browser.
You can export your AWS Pricing Calculator estimate as a CSV file.

AWS Application Cost Profiler

AWS Application Cost Profiler is a service that helps you separate your AWS billing and costs by the tenants of your service.
A tenant can be a user, a group of users, or a project.
You integrate your services with Application Cost Profiler in three steps:
- Enable and configure a report – This step defines what you want your final output to look like.
- Send tenant usage data to Application Cost Profiler – This step requires code in your service to create usage data that associates tenants with the time they use your resources, and then send that usage data to Application Cost Profiler.
- Get reports – Application Cost Profiler provides reports at the cadence that you specified in your report configuration. The reports show the cost associated with each tenant's usage, giving you a granular view of your billing.