AWS Compute Optimization · IaC Implementation

EC2 Rightsizing: Cut Compute Costs 30–40% Without Downtime

Over-provisioned EC2 instances are the #1 AWS cost driver in startup accounts. The fix isn't complicated - but it requires more than CloudWatch CPU metrics to do safely.

#1 finding in every audit
Graviton saves 20–40% extra
Terraform PRs, not console changes
Validate before full rollout

What Rightsizing Actually Means

The common mistake

Most teams look at CPU utilization in CloudWatch and see 8% average. They're afraid to downsize because "what if there's a spike?" So they keep the m5.2xlarge that's spending $280/month serving light background jobs.

CloudWatch CPU alone is not enough. Without memory, network, and disk I/O data, you're flying blind.

The right approach

Analyze all four dimensions:

  • CPU utilization (p95, not average)
  • Memory utilization (requires CloudWatch Agent)
  • Network I/O (Mbps in/out)
  • EBS I/O (read/write IOPS and throughput)

Why CloudWatch alone isn't enough

CloudWatch Agent must be installed on each instance to collect memory and disk metrics. AWS Compute Optimizer requires at least 14 days of memory data to make reliable rightsizing recommendations. Most startups skip this step, which leads to either missed savings (from being too conservative) or OOM incidents (from being too aggressive).

The Rightsizing Process

1

Analyze all dimensions - not just CPU

CloudWatch CPU utilization alone is not enough. A memory-hungry process can run at 10% CPU while using 90% RAM. You need CPU, memory, network I/O, and EBS I/O metrics to rightsize accurately.

Memory metrics require CloudWatch Agent to be installed. Most startups haven't done this. Without memory data, you risk downsizing to an instance that OOMs under load.

2

Recommend the right instance family

Different workloads need different instance types. General purpose (t3/t4g), compute-optimized (c6g), memory-optimized (r6g), and storage-optimized (i3en) all have distinct cost profiles.

Graviton (arm64) instances like t4g, c7g, and m7g are 20–40% cheaper than equivalent x86 instance types with equivalent or better performance for most workloads.

3

Implement via IaC - not console changes

Instance type changes delivered as Terraform or CDK pull requests allow your engineering team to review, test in staging, and merge on their schedule - with a full audit trail.

Console-based resizing creates configuration drift. IaC changes are reproducible, reviewable, and revertible. Every recommendation comes as a ready-to-merge PR.

4

Validate with canary or rolling deployment

After a resize, monitor the new instance for 48–72 hours before rolling out broadly. CloudWatch alarms on CPU, memory, and error rates act as automatic rollback triggers.

For ECS and EKS workloads, this is easier - new task definitions or node group configs can be validated with a small percentage of traffic before full rollout.

Graviton Migration: Rightsizing Accelerator

AWS Graviton (arm64) instances deliver 20–40% better price-performance than equivalent x86 instance types. For most web application and API workloads, it's the single highest-ROI infrastructure change available.

Current (x86)Graviton equivalentx86 priceGraviton priceSaving
m5.xlargem7g.xlarge$0.192/hr$0.154/hr20%
c5.2xlargec7g.2xlarge$0.340/hr$0.290/hr15%
r5.xlarger7g.xlarge$0.252/hr$0.203/hr19%
t3.larget4g.large$0.0832/hr$0.0672/hr19%

Prices are us-east-1 On-Demand Linux. Graviton savings stack on top of Savings Plans discounts. Most workloads targeting Linux containers (ECS, EKS) or modern runtimes (Node.js, Python, Go, Java 11+) are Graviton-compatible with minimal changes.

Fixed-price · Risk-free · 3× ROI guarantee

Get a full compute review in your audit

EC2 rightsizing is included in every AWS cost audit. Fixed €5K price, 3× ROI guaranteed, Terraform PRs delivered in 1 week.

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