How to reduce cloud cost using AWS Lambda and CloudWatch?

Companies face new possibilities and obstacles as cloud computing becomes more commonplace. Although cloud computing has many advantages, expenses can easily get out of hand without proper administration. Amazon Web Services offers two tools, AWS Lambda, and AWS CloudWatch, that can assist companies in lowering cloud costs while keeping top efficiency. In this article, we will explore how AWS Lambda and AWS CloudWatch can be used to optimize cloud usage and reduce costs.

Reduce Cloud Costs with AWS Lambda

Thanks to AWS Lambda, businesses have a cost-effective method to execute code without fretting about infrastructure administration. Here are some methods companies can use AWS Lambda to cut costs −

Improve Code Execution

With AWS Lambda, expense reduction can be accomplished through code processing optimization. Businesses can minimize the number of requests and the length of each operation by shortening the processing time and regularity of code execution. Costs will go down, and work will receive done more quickly. Using fewer libraries and modules in the code is one method to improve code performance. As a result, expenses may be reduced by decreasing the size of the distribution bundle and the function's memory utilization.

Leverage Other AWS Services

To reduce costs, AWS Lambda can be combined with other AWS services. For instance, companies can use Amazon API Gateway to build a RESTful API that uses Lambda functions to respond to queries, eliminating the need for an API server to process requests. This may contribute to expense savings while improving API effectiveness.

Use Provisioned Concurrency

AWS Lambda's provisioned concurrency function ensures a predetermined number of servers are always accessible to process queries. This decreases expenses and boosts productivity by eliminating the cold start period for a Lambda function. Provisioned parallelism can be especially useful for functions that experience unexpected increases in utilization.

Reduce Memory Allocations

The cost of AWS Lambda is determined by the quantity of memory allotted to a code. Businesses can lower the expense of operating a function by decreasing the memory allotted to it. Using smaller tools and components in the code is one method to cut back on memory allocations. By doing this, the deployment package's size and the function's RAM utilization can decrease.

Reduce Cloud Costs with AWS CloudWatch

AWS Businesses can track and record the usage of AWS resources and apps in real-time using CloudWatch. Businesses can monitor performance indicators like CPU usage and network traffic with CloudWatch and create alerts to alert them when certain limits are reached. This can assist companies in locating and resolving speed issues before they affect customers and result in additional expenses.

Analyze EC2 Instances Utilization

Businesses can find chances to optimize their use and reduce costs by watching AWS resources with CloudWatch. Businesses can use CloudWatch, for instance, to examine the usage of their EC2 instances and determine whether they can lower the number of instances or change to a reduced instance size. By doing this, expenses could be cut while efficiency would remain at its peak. To spot any instances that are underused or might be scaled back, CloudWatch can also be used to evaluate resource utilization at a detailed level.

Monitor S3 Storage Usage

Monitoring S3 storage utilization with AWS CloudWatch is another method to reduce costs. Businesses can use CloudWatch to find and remove no longer-required items to save money on storage. Storing less useless data in S3 can help to cut expenses while also increasing the effectiveness of the application.

Use Detailed Monitoring

Businesses can measure resource utilization in great depth with the help of AWS CloudWatch's comprehensive monitoring features. Businesses can find optimized utilization trends by analyzing this data, lowering costs, and raising productivity. For instance, companies can maximize their resource usage by using thorough tracking to spot any resource usage that is higher than expected.

Analyze Application Logs

Businesses can examine application logs using CloudWatch logs to spot any errors that need to be fixed. This may result in improved application speed, greater effectiveness, and lower expenses. Businesses can find any bottlenecks or inefficiencies in their program and fix them to reduce costs by examining records.

Set CloudWatch Alarms

CloudWatch alerts can alert businesses when specific limits are surpassed, such as CPU usage or network traffic. By setting these alerts, businesses can effectively identify and resolve speed problems before they impact customers and incur additional costs. Preventing performance problems from degrading the user experience can help reduce costs.


Businesses can use AWS Lambda and AWS CloudWatch, two potent tools, to cut cloud costs while keeping top efficiency. Businesses can greatly lower their AWS costs by optimizing code performance, utilizing other AWS services, using provisioned concurrency, lowering memory allocations, tracking resource usage, and examining application records. Businesses can also find chances to optimize resource usage and reduce costs by using CloudWatch to monitor resource consumption. Utilizing these tools is crucial to cutting expenses and maintaining top performance as companies migrate to the cloud.

Updated on: 27-Apr-2023


Kickstart Your Career

Get certified by completing the course

Get Started