AWS Cost Optimization Strategies

1. Isolation vs. Cost Balance

The tenant model is the primary driver of AWS expenditure. Transitioning from high-overhead Silo models to Pooled or Bridge models significantly reduces base infrastructure costs.

• Pooled Model: Maximizes utilization via shared compute (Lambda/EC2) and Serverless DBs.
• Silo Model: Higher costs but better isolation; requires Instance Scheduling for non-production environments.

2. Tenant Cost Attribution

Identifying "Cost per Tenant" (CPT) is critical for enterprise margin management.

3. Compute & Data Tiering

• AWS Graviton: Switch to ARM-based processors for RDS and EC2 to achieve ~40% better price-performance.
• Spot Instances: Ideal for tenant background processing (reporting, data migration) saving up to 90%.
• S3 Intelligent-Tiering: Automates data lifecycle management across tenant datasets without manual intervention.

4. Modern Governance (FinOps)

Set up automated AWS Cost Anomaly Detection to identify "noisy neighbors"—tenants who consume disproportionate resources and threaten profitability.