Learn how AWS Budgets enables businesses to track service costs and receive notifications when forecasted expenses reach specific thresholds, ensuring proactive cost management in AWS.
Table of Contents
Question
A company wants to track the service costs of their AWS account. The company also wants to receive notifications when the forecasted costs reach a specific level. Which AWS service or tool provides this functionality?
A. AWS Budgets
B. AWS Cost Explorer
C. Savings Plans
D. AWS Billing Conductor
Answer
A. AWS Budgets
Explanation
AWS Budgets allows you to set custom budgets that alert you when your costs or usage exceed (or are forecasted to exceed) your budgeted amount.
AWS Budgets is specifically designed to help users monitor their costs and usage, set financial thresholds, and receive notifications when actual or forecasted spending exceeds predefined limits. Here’s why AWS Budgets is the right choice for this scenario:
- Cost and Usage Tracking: AWS Budgets allows you to set up cost, usage, and Reserved Instance (RI) utilization budgets. These budgets can be tailored to your needs, such as tracking costs for specific services, accounts, or projects.
- Forecasting: It provides cost and usage forecasts based on historical data, enabling you to anticipate future spending trends.
- Alerts and Notifications: You can configure alerts to notify you via email or Amazon SNS when your actual or forecasted costs exceed your budget thresholds. This proactive approach helps prevent unexpected overruns.
- Integration with Cost Management Tools: AWS Budgets integrates seamlessly with AWS Cost Explorer, offering enhanced visibility into your spending patterns and optimization opportunities.
Why Not the Other Options?
B. AWS Cost Explorer: While Cost Explorer is excellent for analyzing past costs, usage trends, and forecasting future expenses, it does not provide the ability to set budget thresholds or send notifications when those thresholds are exceeded.
C. Savings Plans: Savings Plans are a pricing model that offers cost savings in exchange for a commitment to consistent usage over time. They do not provide cost tracking or alerting functionalities.
D. AWS Billing Conductor: This service is used for creating custom billing configurations for chargeback purposes within organizations but does not offer cost tracking or notification features tied to forecasted budgets.
AWS Budgets stands out as the most comprehensive tool for tracking costs and receiving notifications about forecasted expenses, making it the ideal solution for the given scenario.
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