Getting Started with AWS Cost Explorer: Analyze, Manage, and Save

While AWS Cost Explorer offers many important features for effective cost monitoring, it is not without limitations:
While AWS Cost Explorer is a powerful tool, it has certain limitations that limit an organization’s scope of cloud cost savings.

By Aman Aggarwal
One of the most critical features of AWS Cost Explorer is its forecasting which predicts future costs based on historical data. This data helps companies get a futuristic view of any upcoming expenses. Users can also integrate forecasts with AWS Budgets to set spending thresholds and receive alerts when nearing their limits. This enables companies to manage costs effectively without budget overruns.
In the age of cost-consciousness, monitoring of costs and reducing waste is one of the key objectives of any company operating in the Cloud. 
AWS Cost Explorer is a very important tool for companies to manage their cloud costs within the AWS ecosystem. Its robust features, such as cost visualization, trend analysis, and forecasting, make it essential for organizations in their cloud cost optimization. By identifying idle resources, spotting high-cost services, and forecasting expenses, it provides the insights needed for cloud cost optimization. 
AWS Cost Explorer has several features to help businesses:
The forecasting panel provides projections for future spending based on historical data.

1. Forecasting and Budgeting: The tool uses historical data to forecast future costs up to 12 months, helping users plan and budget effectively.
   
2. Cost and Usage Reports: Cost Explorer includes built-in reports that display key insights, such as monthly spending by service or usage type. 
3. Customizable Filtering and Grouping: Users can create custom reports by filtering data based on service, region, tags, or usage types.
4. Interactive Dashboards: Users can utilize interactive dashboards that can be customized to display relevant cost and usage metrics for different stakeholders.
5. Service-Specific Insights: The tool provides granular data for specific AWS services, enabling businesses to highlight areas where they can save costs or optimize usage.
6. Anomaly Detection: Users can set up alerts to detect unusual spending patterns, allowing for quick investigation and resolution.
7. Cost Allocation Tags: AWS Cost Explorer enables users to categorize and track costs by project, department, or team, improving cost management and accountability.

Using AWS Cost Explorer

1. Navigate to the Billing and Cost Management Console in your AWS account and enable Cost Explorer.
2. The main dashboard provides a high-level view of your AWS spending. You can customize the display to focus on specific services or periods.
3. Use the “Create Report” feature to define specific parameters, such as filtering by service or region. You can save the reports for future or recurring analysis.
4. Set up forecasting to estimate future costs and identify potential budget overruns.

How AWS Cost Explorer helps companies is that it helps visualize, analyze, and manage cloud expenses, helping companies in their cloud cost optimization.
Spotting High-Cost Services and Resources
AWS Cost Explorer highlights idle or underutilized resources, such as oversized EC2 instances or unused Reserved Instances. You may downsize these resources or terminate them which can lead to significant cloud cost savings.
AWS Cost Explorer allows users to track monthly cost trends and identify anomalies, such as unexpected spikes in usage. For instance, a sudden increase in EC2 costs could signal inefficient configurations or unnecessary resource usage.
Key Features

1. Month-to-date costs compare your predictions for monthly spending to date with actual costs.
   
2. Forecasted month-end costs provide an estimate of your incurred costs at the end of the month. You can also compare this forecast to your real costs for the last month. 
3. Unblended monthly and daily costs – Cost Explorer provides a graph of the up-to-date unblended daily expenditures. Select Explore costs to modify parameters and filters for the chart.

Analyzing Monthly Trends and Anomalies
In your cloud optimization journey, a third-party solution like Cloudkeeper is desirable which can complement AWS Cost Explorer with these additional features.
Additional Features to look for in third-party tools
Limitations of AWS Cost Explorer
Graphical Representation: Line and bar charts visualize usage trends and spending patterns over time.

The Cost Explorer page provides details about monthly costs in the following ways: 
Forecasting and Budgeting with AWS Cost Explorer
Cloud environments are dynamic in nature, where cloud usage can greatly vary. AWS Cost Explorer is a very handy tool for optimizing costs. The tool’s intuitive interface and analytical capabilities make it easy for users to make data-driven decisions, forecast future costs, and optimize their cloud infrastructure.
AWS offers a suite of cost management. They are AWS Cost Explorer, AWS Budgets, and AWS Trusted Advisor. All these tools provide comprehensive cloud cost management for enterprises to save on rising costs. While AWS Budgets focuses on budget controls and AWS Trusted Advisor recommends the best practices, AWS Cost Explorer provides historical and current cost analysis, thus enhancing the cloud cost visibility of a company.
Importance of AWS Cost Explorer
By analyzing costs by service, users can identify high-cost resources and evaluate whether they are critical to operations. For example, high Lambda function usage might suggest opportunities to refactor code for efficiency.

• Granular Insights: The tool provides an overview of costs but fails to provide actionable insights for complex cloud systems.
• Technical knowledge required: Users must interpret data and implement changes themselves.
• Basic Automation: The level of automation is very basic and doesn’t offer automated cost-saving features.

Once you’ve enabled Cost Explorer, AWS collects the details about costs for the previous 12 months and the current month, and calculates an estimate for the upcoming 12 months.
Identifying Idle or Underutilized Resources
Walkthrough of the AWS Cost Explorer Dashboard

• Actionable Recommendations: Customized recommendations based on advanced analytics to identify savings opportunities.
• Automated Cost Optimizations: Implement changes like resource resizing or scheduling shutdowns without manual intervention.
• Deeper Visibility: Comprehensive reports that delve into complex cost patterns across large-scale deployments.
• Premium Support: Access to FinOps experts for ongoing optimization and support.

The AWS Cost Explorer dashboard provides an overview of your costs and usage There are various charts and graphs to visualize your spending patterns. You can customize the dashboard to display the metrics and dimensions that are most relevant to your business. The dashboard is intuitive and allows you to easily navigate through different sections and drill down into specific cost categories for detailed analysis. Some of these are:

Overview Section which displays the total spending for the selected time frame. It can further be filtered by categories like service or region.
AWS Cost Explorer is one of the most important tools in the AWS ecosystem that helps companies visualize the AWS account’s cost and usage data. It provides enterprises a break-up of the total AWS bill, including how much has been spent on various AWS services. AWS Cost Explorer helps organizations optimize their AWS expenditures and align their investments with business goals with detailed insights into costs and usage.