> For the complete documentation index, see [llms.txt](https://mamawhocode.gitbook.io/aws/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://mamawhocode.gitbook.io/aws/knowledge/aws-best-practices/well-architected/cost-optimization.md).

# Cost optimization

> Deliver business value at the lowest price point.

### Design principles

* Adopt a consumption mode (pay per use)
* Measure overall efficiency
* Adopt managed services and Stop spending on data center operations
* Analyze and attribute expenses. e.g: tags

### AWS Services

* Expenditure awareness: AWS budgets, Cost explorer, Cost and usage report
* Cost-effective resources: Spot vs Reserved vs Glacier
* Matching supply and demand: ASG
* Optimize over time: Trusted Advisor

![cost-optimization-pillar](https://dz2cdn1.dzone.com/storage/temp/11733955-volansys-cost-optimization.png)