Cost optimization pillar in AWS - Mini Project: Build & Apply

Cost Optimization Pillar in AWS

📖 Scenario: You are working as a cloud architect for a small company. Your task is to set up a simple AWS infrastructure that follows the cost optimization pillar best practices. This means you will create resources that are efficient and avoid unnecessary expenses.

🎯 Goal: Build a basic AWS infrastructure using AWS CloudFormation that includes a cost-effective EC2 instance and an S3 bucket with lifecycle rules to reduce storage costs.

📋 What You'll Learn

Create a CloudFormation template with a minimal EC2 instance using a t3.micro instance type

Add an S3 bucket with a lifecycle rule to transition objects to cheaper storage after 30 days

Use parameters to allow easy adjustment of instance type and lifecycle days

Ensure the template follows AWS best practices for cost optimization

💡 Why This Matters

🌍 Real World

Companies use cost optimization to reduce their cloud bills while maintaining performance and reliability.

💼 Career

Cloud architects and engineers must design infrastructure that balances cost and functionality to meet business goals.

1

Create the basic CloudFormation template structure

Create a CloudFormation template with the root keys AWSTemplateFormatVersion set to '2010-09-09' and Description set to 'Cost optimization example template'. Also, add an empty Resources section.

AWS

AWSTemplateFormatVersion: '2010-09-09'
Description: 'Cost optimization example template'
Resources:
  # Your code here

Need a hint?

Start with the basic keys of a CloudFormation template: version, description, and resources.

2

Add parameters for instance type and lifecycle days

Add a Parameters section with two parameters: InstanceType of type String with default t3.micro, and LifecycleDays of type Number with default 30.

AWS

AWSTemplateFormatVersion: '2010-09-09'
Description: 'Cost optimization example template'
Parameters:
  # Your code here
Resources: {}

Need a hint?

Parameters allow you to customize the template without changing the code.

3

Add a cost-effective EC2 instance resource

Add a resource named MyEC2Instance of type AWS::EC2::Instance with the property InstanceType set to { Ref: 'InstanceType' } and ImageId set to ami-0c02fb55956c7d316 (Amazon Linux 2 in us-east-1).

AWS

AWSTemplateFormatVersion: '2010-09-09'
Description: 'Cost optimization example template'
Parameters:
  InstanceType:
    Type: String
    Default: t3.micro
  LifecycleDays:
    Type: Number
    Default: 30
Resources:
  # Your code here

Need a hint?

Use the parameter InstanceType to set the EC2 instance type for cost savings.

4

Add an S3 bucket with lifecycle rule for cost savings

Add a resource named MyS3Bucket of type AWS::S3::Bucket with a LifecycleConfiguration that transitions objects to STANDARD_IA storage class after { Ref: 'LifecycleDays' } days.

AWS

AWSTemplateFormatVersion: '2010-09-09'
Description: 'Cost optimization example template'
Parameters:
  InstanceType:
    Type: String
    Default: t3.micro
  LifecycleDays:
    Type: Number
    Default: 30
Resources:
  MyEC2Instance:
    Type: AWS::EC2::Instance
    Properties:
      InstanceType: !Ref InstanceType
      ImageId: ami-0c02fb55956c7d316
  # Your code here

Need a hint?

Use lifecycle rules to move data to cheaper storage after a set number of days.