> For the complete documentation index, see [llms.txt](https://ysfang82.gitbook.io/development-notes/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ysfang82.gitbook.io/development-notes/aws-notes/well-architect-framework/cost-optimization.md).

# Cost Optimization

**Design Principle**

* Transparently attribute expecditure
* Use managed service to reduce cost of ownership
* Trade capital expense for operating expense
* Benefit from economies of scale
* Stop spending money on data center operations

**Cost Optimization in the cloud consists of**

* Matched supply and demand
* Cost-effective resources
  * Choose appropriate EC2 type, make use of AWS trusted advisor
* Expenditure awareness
  * Use tags, billing alerts
* Optimizing over time
  * AWS blog, AWS trusted advisor