AWS Cost Optimization

Client Background:
One of our valued clients, a leading Pharmacy Benefit Manager (PBM), approached us to address rising AWS costs. Their cloud infrastructure supports critical applications for prescription processing, member management, and healthcare analytics—requiring high reliability and efficiency. However, as their usage of AWS expanded across multiple environments (production, testing, and development), so did their cloud expenses. They knew costs were spiraling, but needed expert insights to identify specific savings opportunities without compromising performance or security.

Challenges:
The PBM was dealing with escalating AWS costs across a complex multi-account setup and needed an experienced partner to help them optimize resources. Their team lacked visibility into specific areas of overspending and had limited capacity to implement a sustainable cost management strategy. That’s where GMS stepped in.

Solution: AWS Cost Optimization Assessment by GMS

Services We Focused On:

1. EC2 Instances: We analyzed their EC2 usage patterns, identifying instances that were oversized or underutilized. By rightsizing and optimizing these instances, we achieved substantial savings without impacting performance.
   
2. EBS Volumes: We found numerous unattached EBS volumes—costing money with no business value. We automated cleanup processes to delete these stale volumes going forward.
   
3. S3 Storage: We conducted a deep dive into their S3 usage and implemented lifecycle policies to move rarely accessed data to lower-cost tiers, like S3 Infrequent Access and Glacier.
   
4. RDS (Relational Database Service): We assessed their RDS configurations, adjusting instance sizes and recommending Reserved Instances (RIs) for predictable workloads, saving them on database costs.
   
5. Elastic Load Balancers (ELB): We identified and deactivated idle load balancers, optimizing those that were still in use to minimize costs.
   
6. Lambda Functions: We reviewed the memory and timeout settings on Lambda functions, aligning resources to the actual workload requirements.
   
7. Snapshots and Backups: We noticed outdated snapshots consuming unnecessary storage and set up lifecycle policies to automate cleanup of old backups.
   
   

Steps in Our Cost Optimization Process

1. Initial Cost Analysis:
   • We started with a deep analysis of the client’s billing data using AWS Cost Explorer, identifying high-cost areas and potential savings opportunities.
   • This allowed us to create a baseline for current spending and project potential savings post-optimization.
     
2. Resource Rightsizing and Cleanup:
   • Our team of AWS-certified engineers worked closely with the client to review oversized resources, particularly in EC2 and RDS, and recommended appropriate adjustments.
   • This involved downgrading instance sizes, consolidating workloads, and implementing auto-scaling where possible.
     
3. Reserved Instance and Savings Plan Recommendations:
   • To further optimize costs, we helped the client transition from on-demand to Reserved Instances (RIs) for steady-state workloads, aligning with their budget and usage patterns.
   • We provided clear recommendations on the optimal blend of RIs and Savings Plans to maximize long-term savings.
     
4. Storage Optimization:
   • GMS implemented lifecycle policies for S3 storage, moving less critical data to cost-effective storage classes.
   • Unused EBS volumes were removed, and automated cleanup processes were set up to avoid unnecessary expenses in the future.
     
5. Usage Monitoring and Alerts:
   • We configured monitoring dashboards and alerts in AWS Cost Explorer and CloudWatch, enabling real-time visibility into spending and potential cost spikes.
   • These alerts empowered the client to manage costs proactively and address any anomalies swiftly.
     
6. Custom Tagging Strategy:
   • To improve cost transparency, we implemented a standardized tagging policy across resources by team, environment, and project.
   • This allowed the PBM to break down AWS expenses by department and project, offering better insights into cost drivers and enabling more targeted cost control.
     
7. Comprehensive Reporting and Continuous Optimization:
   • At the end of the assessment, we provided the client with a detailed report outlining cost-saving measures, anticipated savings, and a roadmap for sustained cost optimization.
   • Our team scheduled monthly check-ins to track progress, review usage patterns, and make ongoing adjustments, ensuring the PBM maintains cost control and benefits from continuous optimization.

Results

Through GMS’s AWS Cost Optimization Assessment, our PBM client achieved:

• Significant cost savings on their monthly AWS bill by rightsizing resources, optimizing storage, and utilizing Reserved Instances.
  
• Enhanced visibility into their cloud expenses with dashboards and alerts, allowing their teams to monitor costs in real time.
  
• Long-term cost management strategies, with automated processes for cleanup and monthly follow-ups to sustain optimization efforts.

The GMS Cloud Engineering team helped transform the way this PBM manages its AWS resources, reducing waste and ensuring they only pay for what they truly need. With our guidance, the client has established a more efficient, cost-effective, and sustainable approach to managing their cloud environment—empowering them to focus on delivering top-tier services without being burdened by escalating cloud expenses.