AWS Cost Optimization with Terraform, Functions, and Tags

Step into the world of AWS cost optimization with our latest portfolio! Discover how Terraform, Serverless Functions, and Tags helped our clients minimize expenses and maximize their AWS investment. From practical tips to strategic insights, let’s dive in and optimize your AWS costs together!

Problem Statement

Our client, an Edutech company, is encountering challenges in managing escalating costs while scaling their infrastructure. Despite experiencing rapid growth with a substantial user base on their education platform, controlling expenses has emerged as a significant issue. Seeking assistance, they approached our team for guidance.

Upon investigation, we found they were using on-demand instances for their testing area, and these were running even after work hours and weekends. Also, they were using Elastic IP for it. Plus, many machines were running during off-peak hours in their production setup, leading to unnecessary costs.


Resources running even after working hours

AWS cost optimization

Our Solution

We analyze the problems and to address these issues, we proposed two strategies:

  1. Use Terraform and tags, to automate the scheduling of EC2 instances, leveraging CloudWatch events, for efficient starting and stopping based on specified cron expressions, optimizing resource utilization, and reducing costs.
  2. Use Serverless functions to get machine IP addresses, and start and stop machines when needed, using serverless endpoints.
  3. Use spot instances for your testing and staging areas to reducing costs.

Significant Cost Savings

Automated shutdowns during off-peak hours and using spot instances for testing can lead to substantial cost reductions on AWS bills.

Scalability and Flexibility

Spot instances offer scalability and flexibility, facilitating easy adjustments to resources based on demand without overspending.

Enhanced Performance

Leveraging spot instances and optimizing resource usage can potentially enhance system performance during peak hours, ensuring a seamless user experience.

Efficient Resource Utilization

With serverless functions and tagging, resources are utilized optimally, ensuring they only run when needed, preventing unnecessary spending on idle resources.

Focus on Business Objectives

Cost-saving measures enable the redirection of saved funds towards core business objectives like product development or marketing.

Improved Cost Management

Implementing these strategies enhances cost management by optimizing resource usage and reducing unnecessary expenses.


Solution Technical Stack

Our solution employs a robust technical stack to tackle the challenge of cost optimization effectively. The key components of our technical stack include:

Final Outcomes

Edutech company achieved significant cost reductions during off-hours and weekends by adopting Terraform, Serverless functions, and resource tagging.

  1. Reduced EC2 Instance Costs: The Edutech company slashed EC2 expenses during non-peak hours, by adopting Terraform and Serverless functions.

  2. Eliminated Idle Resources: Through resource tagging and cost analysis, the company efficiently eliminated idle resources, minimizing unnecessary expenses.


Reduced manual monitoring


Reduce cost


Ready to get started?

If you’re facing the same issues and need our help, don’t hesitate to contact us for a free consultation.