Skip to content
Notifications
Clear all

Check out my cost breakdown for 500 EC2 instances over 6 months.

38 Posts
36 Users
0 Reactions
59 Views
(@elliotn)
Reputable Member
Joined: 3 months ago
Posts: 291
 

Thanks for sharing the concrete figures, that's valuable data. While the predictability of the per-instance model is a clear benefit, I'd caution against using the average monthly cost of ~$4.74 for forecasting without understanding the distribution. As others have alluded to, a mixed Linux/Windows fleet almost certainly has a significant cost variance between the two OS types. Did you break down the six-month total by operating system? In our analysis, Windows instances consistently carried a 25-30% premium, which meant our true per-instance cost for scaling the Linux segment was substantially lower than the blended average. Using that blended rate for future projections could lead to overestimation if your scaling is skewed toward one platform.

Your point about the accuracy of the cost estimation tool is interesting. We found it reliable only after we segmented our fleet by instance family and OS in the inputs. The agent's CPU overhead isn't linear with vCPU count, so feeding it a simple instance count gave us a misleading figure. The tool's accuracy in your case might indicate a more homogeneous fleet, or perhaps you've already done that segmentation work.

I'm also tracking these costs at a similar scale. Our numbers align roughly with yours, but the more critical metric we watch is the security layer's cost as a percentage of the total compute run-rate, especially after applying Savings Plans. That's where the real optimization pressure appears.


Data first, decisions later.


   
ReplyQuote
(@ci_cd_plumber)
Honorable Member
Joined: 5 months ago
Posts: 512
 

You're right about the distribution. We learned that the hard way when our fleet shifted heavily towards Windows for a new project. The blended average became useless overnight, and the cost team was blindsided.

Our fix was to tag every instance with `os_type` and `instance_family` in our billing export, then pivot the agent cost in the BI tool. Now we forecast based on the actual mix in the pipeline, not the fleet-wide average. It's more work, but you can't manage what you don't measure.


Build once, deploy everywhere


   
ReplyQuote
(@danielf)
Reputable Member
Joined: 2 months ago
Posts: 473
 

Thanks, and good question. It was quite reliable from the start for a broad estimate, maybe within 5-10%, but it only became truly accurate after we fed it our exact instance inventory. As user1018 noted, the key was separating the fleet by instance family and OS. Feeding it our mix of c6i.large vs. m5a.xlarge made all the difference.

If you're evaluating for a smaller, more uniform deployment, you might find it spot-on right away. The variance seems to come from large, heterogeneous fleets where the per-instance overhead isn't linear.


—daniel


   
ReplyQuote
(@chloe22)
Honorable Member
Joined: 3 months ago
Posts: 503
 

Thanks for kicking this off with real numbers, that's super helpful for the community. The predictability you're seeing is exactly what a lot of teams are after, it makes life so much easier.

I'd just add a gentle nudge to peek under that predictability a bit. When the monthly cost is that flat, it's easy to just accept it as a fixed input. But it's worth asking if every single one of those 500 boxes genuinely needs the exact same level of coverage, or if your security posture could allow for some tiering. Sometimes that flat rate can quietly cover for over-provisioning. 😅

Great to hear the cost tool was accurate for you, too! That's been a mixed bag for others, so it's good data point.


Raise the signal, lower the noise.


   
ReplyQuote
(@danielk)
Honorable Member
Joined: 3 months ago
Posts: 382
 

Agree on the need to look under the flat rate. The challenge is defining the tiers in a way ops and security teams will actually maintain.

A flat bill makes finance happy but it kills engineering incentive to right-size. We solved it by tying agent tiers directly to AWS tags like `env=prod` and `data_classification`. If a box gets tagged for PCI, it auto-upgrades to the full agent. That moved the optimization from a one-time audit to a governance process.

Without that, you're just doing a point-in-time cleanup that drifts in a month.


Trust but verify, then don't trust.


   
ReplyQuote
(@cloud_cost_hawk_2)
Honorable Member
Joined: 5 months ago
Posts: 472
 

Exactly - the "garbage in, garbage out" principle applies heavily here. Modeling different scaling patterns is key, but I've found most tools fall apart when you add a regional variable, like changing the mix between `us-east-1` and `eu-west-1` for the same instance family. The cost estimate often doesn't budge, but your actual bill sure will.

The growth scenario idea is smart, but don't stop at just OS type. Try modeling a burst scenario where you add 100 `g4dn` instances for a month versus adding 100 `t3.medium` for the full forecast period. The delta in the output should be dramatic, and if it isn't, the model is probably too simplistic.



   
ReplyQuote
(@cloud_bill_shock)
Honorable Member
Joined: 4 months ago
Posts: 467
 

"Predictable" just means you've stopped looking. A flat $4.74 per instance is a red flag.

You're celebrating the forecast, not the cost. That spend is over $28k a year. Have you actually validated every single one of those 500 instances needs the full agent? Or are you just paying for coverage you don't use because the bill is easy to predict?

With reserved instances, that agent fee becomes a huge slice of your compute cost. Your blended rate is hiding the real problem.


show me the bill


   
ReplyQuote
(@alexc)
Reputable Member
Joined: 2 months ago
Posts: 341
 

Tying tiers to tags is a great approach. Did you see any performance hit from the auto-upgrade process, especially during a bulk change? We tried something similar but found the agent service restart was too aggressive and caused a few alerts.


Automate everything.


   
ReplyQuote
(@cipher_blue)
Honorable Member
Joined: 6 months ago
Posts: 506
 

That "call us" tier is the oldest sales trick in the book. They give you a nice, clean per-unit price to get you hooked, then pull the rug out once you're dependent.

A stepped model in the contract is the only way to keep them honest. But I've seen vendors fight it, claiming they "need flexibility for future pricing adjustments." Translation: they want to keep you over a barrel.

Did your logging vendor push back when you asked for the stepped rates upfront?



   
ReplyQuote
(@calebh)
Reputable Member
Joined: 2 months ago
Posts: 421
 

Spot on. We fought for that stepped schedule last renewal, and they did push back hard. The line was always about "future innovation" needing pricing freedom.

We got it in by tying the steps to our own growth forecast, which is a public number for us. So it became about matching our planned capacity, not locking them in forever. That seemed to ease the tension.

But you're right, the "call us" tier is pure leverage. Once you're past that threshold, your only negotiating power is the threat to leave, and that's a painful move at scale.


Trust the data, not the demo.


   
ReplyQuote
(@henryp)
Reputable Member
Joined: 2 months ago
Posts: 294
 

What if you're wrong about the red flag? Flat per-unit costs are the ideal outcome of a negotiated enterprise deal, not a failure of diligence. The real question is what's locked into that $4.74. If it's fixed for the term, you've capped your risk. Your variable is the instance count, which you control.

The problem isn't a predictable agent fee, it's treating it as a fixed input. If you shift to reserved instances, the compute cost drops but the agent fee doesn't. That changes the calculus for the next 500 boxes. The blend gets worse, which is the actual incentive to right-size.

You're blaming the forecast for the lack of review.


Doubt everything


   
ReplyQuote
(@danielb)
Reputable Member
Joined: 3 months ago
Posts: 252
 

Agree on the control point. The risk you're describing is real, but a predictable rate should let you model it before you commit to RIs.

Your blend gets worse, but that's a predictable delta you can now weigh against RI savings. The failure is in skipping that step because the per-unit cost looks fine.



   
ReplyQuote
(@ethanb8)
Reputable Member
Joined: 3 months ago
Posts: 417
 

Thanks for sharing real numbers, that's genuinely helpful for people modeling this. The predictability you mentioned is a huge plus for planning, but it's worth digging into what's driving that average.

At your scale, even a small variance in the agent tier mix can shift that $4.74 figure. Have you looked at the distribution behind the average? For example, if a portion of those instances are dev/test and could use a lighter agent, your effective cost per *necessary* instance of full coverage might be quite a bit higher. That's where the tag-based approach others mentioned could really sharpen your view.


Keep it civil, keep it real


   
ReplyQuote
(@alexw)
Reputable Member
Joined: 3 months ago
Posts: 443
 

Thanks for sharing the actual numbers, that's a great data point. The predictability is a solid benefit for operational planning, as you said.

One thing that's helped me is to track that average cost on a per-region basis, even with a per-instance model. Sometimes the base compute cost you're securing the RI on differs enough that it changes the effective blended rate, which can affect decisions on future commitments. Have you broken it down by region yet?


Stay grounded, stay skeptical.


   
ReplyQuote
(@ethanb8)
Reputable Member
Joined: 3 months ago
Posts: 417
 

That's a good push on the underlying compute cost, and you're right about the scale. The security layer does become a larger percentage of the total cost per instance once you optimize the base compute with RIs or Savings Plans.

It changes the value question from just "is this agent cost reasonable" to "is this security layer worth X percent of my optimized compute cost." That's a sharper way to look at it during the next renewal.


Keep it civil, keep it real


   
ReplyQuote
Page 2 / 3