I've been brought on as a contractor to help an enterprise SaaS provider trim down their AWS expenses, which currently sit at $13,000 a month. My first thought is to switch to reserved instances (RIs) since our workloads have been pretty stable for over 18 months. However, management is also considering third-party cloud cost optimization services that promise savings but come with some significant concerns. I'm worried about the security implications of giving these services admin-level permissions, the complications that come with transitioning our billing method, and the potential for hidden costs. Plus, as a company funded by government grants, we must ensure compliance with strict auditing standards.
So I'm wondering, have any of you experienced using these third-party services? Do you have horror stories of account lockouts or unexpected fees? For those in regulated sectors, how do you approach compliance with such setups? Am I being overly cautious, or do these concerns hold weight? I need to decide soon, so any insights would be appreciated!
5 Answers
You’ve done great research as a contractor, but remember, you aren't the decision-maker. Present the risks clearly and let the business decide. If they plan changes down the line, those 3-year commitments could be really limiting. You could mix your commitments—maybe half 1-year and half 3-year? That way you stay flexible!
Instead of using third party billing, have you started analyzing which workloads cost the most? Start by mitigating costs on your EC2 and RDS instances. Consider a 1-year RI for a portion of your usage to start, then reevaluate how much savings you need going forward.
Honestly, I'd steer clear of the 3-year commitment. Unless your infrastructure is static—which it rarely is—you’re taking a big gamble. Consider a one-year savings plan instead. And if you're worried about compliance, just stick with AWS for simplicity in billing!
We went with a third-party provider early on, and it was a disaster. They didn't want to terminate our contract, didn’t hand over account ownership easily, and had several complications. In the end, we spent way more fixing their mess than we saved. Just be careful with who you trust with your AWS credentials!
What's this about being under their account? I know how to remove accounts from organizations—it's tricky but doable.
Watch out for those third-party services! I once saw someone lose access to their AWS account because the vendor stopped paying Amazon. You really don't want to hand over control like that. Stick with direct AWS billing; it's much simpler and less risky.
Do you have a link to that post? I’d like to share it as a reference.
Totally agree! Have you thought about looking into AWS's Enterprise Discount Program? It can save you money without the same level of commitment as RIs.