Learn why AWS Cost Explorer is the best tool for forecasting AWS spending. Understand its features, benefits, and how it helps predict future costs based on historical data.
Table of Contents
Question
Which AWS tool or service should a company use to forecast AWS spending?
A. Amazon DevPay
B. AWS Organizations
C. AWS Trusted Advisor
D. Cost Explorer
Answer
D. Cost Explorer
The correct answer is D. Cost Explorer. AWS Cost Explorer is the most suitable tool for forecasting AWS spending because it provides detailed insights into past usage and spending patterns while projecting future costs.
Explanation
Cost Explorer is a tool that allows users to analyze and forecast AWS spending, helping to plan future budgets.
Why Cost Explorer?
AWS Cost Explorer offers robust capabilities for analyzing and forecasting costs:
- Forecasting Future Costs: It uses historical data (up to 12 months) to predict future expenses for the next 12 months. This helps businesses plan budgets and allocate resources effectively.
- Visualization and Customization: The tool provides interactive graphs and charts, allowing users to customize reports by filtering data based on services, accounts, regions, or tags. This granularity makes it easier to identify cost trends and anomalies.
- Prediction Accuracy: Cost Explorer forecasts include an 80% prediction interval, which provides a reliable range of expected costs based on historical spending patterns.
- Ease of Use: It is simple to set up and access via the AWS Billing Console, making it a user-friendly option for businesses of all sizes.
Why Not the Other Options?
A. Amazon DevPay: This service is designed for managing billing for third-party applications sold on AWS Marketplace, not for cost forecasting.
B. AWS Organizations: While AWS Organizations helps manage multiple accounts under a single structure, it does not provide cost forecasting capabilities.
C. AWS Trusted Advisor: Trusted Advisor focuses on optimizing performance, security, and cost-efficiency but does not offer forecasting tools like Cost Explorer.
Key Features of AWS Cost Explorer
- Historical Data Analysis: Analyze up to 12 months of past usage and spending.
- Customizable Filters: Segment data by service, account, region, or tag.
- Forecasting Capabilities: Predict future costs with an 80% accuracy range.
- Cost Optimization Insights: Identify high-cost areas and potential savings opportunities.
By leveraging these features, businesses can gain actionable insights into their cloud spending and make informed financial decisions. For forecasting AWS costs effectively, AWS Cost Explorer is the go-to tool, offering both simplicity and powerful analytics tailored to your needs.
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