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AWS Infrastructure Cost Optimization Case Study

AWS Cost Savings

📊 Executive Summary

This case study demonstrates a comprehensive AWS infrastructure audit and optimization project for an EdTech company, resulting in $71.36 monthly cost savings (~26% reduction) through strategic resource rightsizing and infrastructure optimization.

Project Timeline: Q4 2025
Industry: Education Technology
Client: EdTech Company (Client A)
Role: AWS Solutions Consultant


🎯 Project Objectives

  • Conduct comprehensive AWS infrastructure audit
  • Identify cost optimization opportunities
  • Improve security posture
  • Provide actionable recommendations for resource optimization
  • Maintain or improve performance while reducing costs

🔍 Initial Assessment

Infrastructure Overview

AWS Services in Use:

  • Elastic Compute Cloud (EC2)
  • Simple Storage Service (S3)
  • Virtual Private Cloud (VPC)
  • CloudWatch
  • CloudFront
  • AWS Glue
  • Secrets Manager
  • Key Management Service (KMS)
  • Simple Notification Service (SNS)
  • Simple Queue Service (SQS)
  • Simple Email Service (SES)
  • End User Messaging

Current EC2 Configuration

Server Name Instance Type OS Storage Status Region CPU Utilization
Server-Beta t2.micro Linux/UNIX 26 GB Stopped Mumbai N/A
Server-Beta-New t3.medium Ubuntu Pro 50 GB Running Mumbai 100%
Server-Prod c7i.xlarge Ubuntu Pro 150 GB Running Mumbai 30.9%

S3 Storage

Metric Value
Active Buckets 2
Region Mumbai
Total Storage 73.9 GB
Object Count 6,300
Average Object Size 12.1 MB

💡 Key Findings

1. EC2 Over-Provisioning

  • Production server (c7i.xlarge) running at only 31% CPU utilization
  • Significant opportunity for instance rightsizing
  • Current configuration exceeding actual workload requirements

2. Idle Resources

  • 1 Elastic IP address not associated with any running instance
  • Stopped EC2 instance with attached EBS volume
  • Unnecessary snapshot accumulation

3. Security Gaps

  • Instances running in public subnets
  • EBS volumes not encrypted
  • Long-lived access keys (916+ days)
  • Missing Multi-Factor Authentication (MFA)

4. Cost Inefficiencies

  • Underutilized compute resources
  • Unoptimized storage lifecycle policies
  • Idle resource costs accumulating

🛠️ Recommendations & Implementation

Cost Optimization Strategies

1. EC2 Instance Rightsizing

Current Configuration:

  • Instance: c7i.xlarge
  • Monthly Cost: $135.42
  • CPU Utilization: 30.9%

Recommended Configuration:

  • Instance: c7i.large
  • Monthly Cost: $67.71
  • Savings: $67.71/month

Justification:

  • Current utilization indicates over-provisioning
  • c7i.large provides sufficient capacity with 50% cost reduction
  • Maintains performance headroom for peak loads
  • Easy rollback if additional capacity needed

2. Elastic IP Optimization

Issue: 1 unassociated Elastic IP

  • Cost: $3.65/month
  • Action: Release unused IP or associate with active resource
  • Savings: $3.65/month

3. Storage Optimization

Snapshot Management:

  • Implement automated lifecycle policies
  • Delete redundant snapshots (retain only recent)
  • Consolidate multiple snapshots per volume
  • Archive rarely-accessed snapshots to S3 Glacier

S3 Lifecycle Policies:

Recommended Policy:
- Standard Storage: 0-30 days
- Intelligent-Tiering: 31-90 days
- Glacier: 91-365 days
- Deep Archive: 365+ days

Expected Benefits:

  • 40-60% reduction in storage costs
  • Automated cost management
  • Maintained data retention compliance

4. Idle Resource Cleanup

Actions:

  • Terminate permanently stopped instances
  • Delete unattached EBS volumes
  • Remove old snapshots beyond retention policy
  • Clean up unused security groups

🔒 Security Recommendations

1. Network Architecture

Current State: Instances in public subnets Recommendation: Migrate to private subnets

Benefits:

  • Reduced attack surface
  • Enhanced security posture
  • Compliance with AWS best practices
  • Internet access through NAT Gateway only

2. Data Encryption

EBS Encryption:

  • Enable encryption at rest for all volumes
  • Use AWS KMS for key management
  • Automatic encryption for new volumes
  • Migrate existing volumes to encrypted copies

Data in Transit:

  • Enforce TLS/SSL for all communications
  • Enable encryption for S3 buckets
  • Use VPC endpoints for AWS service communication

3. Identity & Access Management

Multi-Factor Authentication:

  • Enable MFA for all IAM users
  • Enforce MFA for console access
  • Require MFA for sensitive operations

Access Key Rotation:

  • Rotate keys older than 90 days
  • Implement automated rotation policies
  • Use temporary credentials (STS) where possible
  • Audit and deactivate unused keys

Inactive User Management:

  • Review users with no recent activity
  • Deactivate accounts unused for 90+ days
  • Implement least privilege access
  • Regular access audits

4. Monitoring & Compliance

Enable Security Services:

  • AWS Trusted Advisor: Cost and security recommendations
  • VPC Flow Logs: Network traffic monitoring
  • AWS Shield Standard: DDoS protection
  • CloudTrail: API activity logging
  • GuardDuty: Threat detection
  • Config: Resource compliance monitoring

📈 Results & Impact

Cost Savings Summary

Category Monthly Savings
EC2 Instance Rightsizing $67.71
Elastic IP Removal $3.65
Total Estimated Savings $71.36

Annual Savings: ~$856.32

Performance Impact

  • ✅ Maintained application performance
  • ✅ Preserved peak capacity headroom
  • ✅ No user-facing degradation
  • ✅ Improved resource efficiency

Security Improvements

  • ✅ Enhanced network isolation
  • ✅ Data encryption implementation
  • ✅ Improved access controls
  • ✅ Continuous monitoring enabled

📊 Cost Analysis Breakdown

Before Optimization

EC2 (c7i.xlarge):        $135.42/month
Idle Elastic IP:         $3.65/month
Storage (unoptimized):   Baseline
Total Monthly Cost:      ~$275.00/month

After Optimization

EC2 (c7i.large):         $67.71/month
Elastic IP (removed):    $0.00/month
Storage (optimized):     -40% reduction
Total Monthly Cost:      ~$203.64/month

Cost Reduction: 26% overall savings


🎓 Key Learnings

Technical Insights

  1. Rightsizing Impact: Even 50% CPU utilization indicates potential for optimization
  2. CloudWatch Metrics: 4-week analysis provides reliable usage patterns
  3. Idle Resources: Small costs ($3-5/month) compound significantly over time
  4. Security-First: Security improvements often align with cost optimization

Best Practices Established

  • Regular CloudWatch monitoring (weekly reviews)
  • Automated snapshot lifecycle management
  • Quarterly infrastructure audits
  • Continuous cost optimization mindset
  • Security as integral part of optimization

Tools & Methodologies

Analysis Tools Used:

  • AWS Cost Explorer
  • CloudWatch Metrics
  • AWS Trusted Advisor
  • Manual configuration reviews

Evaluation Criteria:

  • CPU/Memory utilization (4-week average)
  • Cost per service breakdown
  • Security compliance assessment
  • Resource utilization patterns

🔄 Ongoing Optimization Strategy

Monthly Reviews

  • CloudWatch metrics analysis
  • Cost Explorer review
  • Unused resource identification
  • Security posture assessment

Quarterly Actions

  • Comprehensive infrastructure audit
  • Reserved Instance optimization
  • Savings Plans evaluation
  • Architecture review

Continuous Monitoring

  • CloudWatch alarms configured
  • Budget alerts active
  • Cost anomaly detection enabled
  • Security notifications subscribed

💼 Business Impact

Financial Benefits

  • ROI: Cost savings pay for optimization effort in first month
  • Scalability: Established framework for future optimization
  • Predictability: Better cost forecasting and budgeting

Operational Benefits

  • Performance: Maintained SLAs while reducing costs
  • Security: Enhanced compliance and risk reduction
  • Efficiency: Automated monitoring and management

Strategic Benefits

  • Documentation: Comprehensive infrastructure understanding
  • Knowledge Transfer: Clear recommendations and rationale
  • Future Planning: Baseline for growth projections

📝 Implementation Roadmap

Phase 1: Quick Wins (Week 1)

  1. ✅ Release unused Elastic IP
  2. ✅ Delete unnecessary snapshots
  3. ✅ Enable CloudWatch detailed monitoring
  4. ✅ Document current state

Phase 2: Rightsizing (Week 2-3)

  1. ✅ Test c7i.large in non-production
  2. ✅ Monitor performance metrics
  3. ✅ Migrate production workload
  4. ✅ Validate performance

Phase 3: Security Hardening (Week 3-4)

  1. ✅ Enable MFA for all users
  2. ✅ Rotate old access keys
  3. ✅ Enable EBS encryption
  4. ✅ Configure VPC Flow Logs

Phase 4: Ongoing Optimization (Continuous)

  1. ✅ Implement S3 lifecycle policies
  2. ✅ Automate snapshot management
  3. ✅ Regular cost reviews
  4. ✅ Continuous monitoring

🛡️ Risk Mitigation

Potential Risks Identified

Performance Degradation:

  • Mitigation: 4-week usage analysis before rightsizing
  • Rollback plan: Easy instance type upgrade if needed
  • Monitoring: Real-time CloudWatch alarms

Service Disruption:

  • Mitigation: Changes during maintenance windows
  • Testing: Staging environment validation
  • Communication: Stakeholder notifications

Cost Increase:

  • Mitigation: Detailed cost projections
  • Monitoring: Daily cost tracking during transition
  • Validation: Week 1 cost comparison

📚 Resources & References

AWS Documentation

Tools Used

  • AWS Cost Explorer
  • AWS CloudWatch
  • AWS Trusted Advisor
  • AWS Compute Optimizer

Related Projects


🤝 Contributing

This is a real-world case study. If you have similar experiences or suggestions for improvement, feel free to open an issue or submit a pull request.


📧 Contact

Abhishek Pandey
Cloud Solutions Professional | AWS Pre-Sales Engineer


📄 License

This project is licensed under the MIT License - see the LICENSE file for details.


⭐ Acknowledgments

This case study represents real-world optimization work conducted during my role as an AWS Solutions Consultant. All sensitive information has been anonymized to protect client confidentiality.


Tags: aws cost-optimization case-study cloud-architecture finops infrastructure ec2 real-world-project


💡 Key Takeaway

"Cost optimization isn't just about reducing spend—it's about maximizing value. Every dollar saved can be reinvested in innovation and growth."

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Real-world AWS infrastructure optimization: Achieved $71/month savings through strategic rightsizing and resource management

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