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April 7, 2025

7 min read

Cloud Cost Optimization for Startups

Your AWS bill doesn't need to be scary. Most startups overspend on cloud infrastructure. Here are the easy wins.


We've inherited AWS accounts where a startup was spending $3,000/month and could have been spending $800. Cloud providers make it easy to spin up resources and hard to know what you're actually using. Here are the places to look first.

Right-size your instances

Most instances are oversized. A t3.medium running at 5% CPU all day should be a t3.small. Check CloudWatch metrics for CPU, memory, and network usage over the past month. Downsizing is free and reversible.

Quick wins

  • Delete unused resources: old snapshots, unattached EBS volumes, idle load balancers
  • Use S3 lifecycle policies to move old data to cheaper storage classes
  • Stop dev/staging environments outside business hours
  • Switch to ARM-based instances (Graviton) for 20% cost reduction at equal performance
  • Use spot instances for batch processing and non-critical workloads

Reserved instances and savings plans

If your usage is predictable, reserved instances or savings plans save 30-60% vs. on-demand pricing. Start with a 1-year no-upfront commitment for your baseline capacity. Don't reserve more than your minimum usage - use on-demand for spikes.

Monitor monthly

Set up AWS Cost Explorer budgets with alerts. Review the bill monthly. Cloud costs creep up slowly - a forgotten test environment here, an oversized database there. Monthly review catches these before they compound.


Ben Arledge
Ben Arledge
CEO & CTO, CloudOwl

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