Budgets and cost anomaly detection in AWS - Step-by-Step Execution

Process Flow - Budgets and cost anomaly detection

Set Budget Amount

↓

Define Budget Scope

↓

Set Alerts Thresholds

↓

Monitor AWS Costs

↓

Detect Anomalies?

No→Continue Monitoring

Yes↓

Send Alert Notification

↓

Review and Adjust Budget

This flow shows how you set a budget, monitor costs, detect anomalies, and get alerts to manage AWS spending.

Execution Sample

AWS

1. Create budget with $100 limit
2. Set alert at 80% usage
3. Monitor daily costs
4. Detect cost anomaly
5. Send alert email

This example sets a budget, watches costs, detects unusual spikes, and sends alerts.

Process Table

Step	Action	Budget State	Cost Data	Anomaly Detected	Alert Sent
1	Create budget $100	Budget=$100, Alert=80%	No cost data yet	No	No
2	Monitor costs day 1	Budget=$100, Alert=80%	Cost=$20	No	No
3	Monitor costs day 2	Budget=$100, Alert=80%	Cost=$50	No	No
4	Monitor costs day 3	Budget=$100, Alert=80%	Cost=$85	No	Alert threshold crossed, alert sent
5	Detect anomaly day 4	Budget=$100, Alert=80%	Cost spike to $130	Yes	Anomaly alert sent
6	Review budget	Budget=$100, Alert=80%	Cost=$130	Yes	Alert sent
7	Adjust budget or investigate	Budget adjusted or issue investigated	Cost monitored	No	No

💡 Process continues with monitoring and alerts as costs change or anomalies detected

Status Tracker

Variable	Start	After Step 2	After Step 3	After Step 4	After Step 5	Final
Budget Limit	$100	$100	$100	$100	$100	Adjusted or $100
Alert Threshold	80%	80%	80%	80%	80%	80%
Cost	$0	$20	$50	$85	$130	Monitored
Anomaly Detected	No	No	No	No	Yes	No or Yes
Alert Sent	No	No	No	Yes	Yes	No or Yes

Key Moments - 3 Insights

Why is an alert sent at step 4 even though no anomaly is detected?

At step 4, the cost reached 85 which is above the 80% alert threshold, triggering a budget alert, but no unusual pattern (anomaly) was detected yet. See execution_table row 4.

What triggers the anomaly detection at step 5?

At step 5, the cost suddenly spikes to $130, exceeding the budget and normal usage patterns, triggering anomaly detection and an alert. See execution_table row 5.

Can the budget be adjusted after alerts?

Yes, after alerts, you can review and adjust the budget or investigate costs to control spending. See execution_table row 7.

Visual Quiz - 3 Questions

Look at the execution_table, what is the cost at step 3?

A $20

B $50

C $85

D $130

💡 Hint

Check the 'Cost Data' column at step 3 in the execution_table.

At which step is an anomaly first detected?

A Step 5

B Step 4

C Step 3

D Step 2

💡 Hint

Look at the 'Anomaly Detected' column in the execution_table.

If the alert threshold was set to 90%, at which step would the first alert be sent?

A Step 4

B Step 3

C Step 5

D No alert would be sent

💡 Hint

Compare the cost values with the alert threshold in the execution_table.

Concept Snapshot

Budgets and cost anomaly detection in AWS:
- Set a budget limit and alert thresholds
- Monitor daily AWS costs
- Alerts trigger when costs exceed thresholds
- Anomaly detection finds unusual cost spikes
- Alerts notify to review or adjust budgets
- Helps control cloud spending effectively

Full Transcript

This visual execution shows how AWS Budgets and Cost Anomaly Detection work together. First, you create a budget with a set limit and alert threshold. Then daily costs are monitored. When costs cross the alert threshold, an alert is sent. If costs spike unusually, anomaly detection triggers an anomaly alert. You then review costs and adjust budgets or investigate. This process repeats to help manage cloud spending and avoid surprises.