$ aws ce get-cost-and-usage --time-period Start=2026-01-01,End=2026-04-01 --granularity MONTHLY
AWS Cost Optimization Best Practices for 2026
Save up to 60% on AWS bills with right-sizing, reserved instances, spot instances, and automation. Real examples from production workloads.
Key Takeaways
- ▹Use AWS Cost Explorer to identify idle resources
- ▹Implement auto-scaling with spot instances for non-critical workloads
- ▹Set up AWS Budgets with alerts at 80% threshold
- ▹Use S3 Intelligent-Tiering for unpredictable access patterns
Why AWS Cost Optimization
AWS bills can spiral quickly without proper management. Many teams see costs double within months.
1. Use Cost Explorer
Start with AWS Cost Explorer to understand spending patterns. Identify idle resources, underutilized instances, and unused services.
2. Right-Sizing EC2
Most common waste is over-provisioned instances. Use AWS Compute Optimizer and Trusted Advisor to find right-sized options.
3. Spot Instances
Save 60-90% with spot instances for non-critical workloads: batch jobs, CI/CD runners, dev environments, data pipelines.
4. Reserved Instances
For predictable 24/7 workloads (databases, app servers), Reserved Instances save up to 40%.
5. S3 Optimization
Use S3 Intelligent-Tiering for unpredictable access. Set lifecycle policies to move old data to Glacier after 90 days.
6. Set Budgets & Alerts
Create AWS Budgets with alerts at 80% threshold. Get notified before costs spiral.
Summary
Start small: enable Cost Explorer, set budgets, right-size one workload at a time.