AWS Billing: Reducing Costs for Multiple Accounts in AWS Organizations

How to Reduce Costs in AWS Billing for Multiple Accounts

Question

In AWS billing, what option can be used to ensure costs can be reduced if you have multiple accounts managed by AWS Organizations?

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

Answer - B.

You can use the Consolidated Billing feature to consolidate payment for multiple Amazon Web Services (AWS) accounts or multiple Amazon International Services Pvt.

Ltd (AISPL) accounts within your organization by designating one of them to be the payer account.

For billing purposes, the consolidated billing feature of AWS Organizations treats all the accounts in the organization as one account.

This means that all accounts in the organization can receive the hourly cost-benefit of Reserved Instances that are purchased by any other account.

Option A is incorrect because combined billing is itself the functionality of Consolidated billing.

Options C and D are just the distractors.

Reference:

https://docs.aws.amazon.com/awsaccountbilling/latest/aboutv2/useconsolidatedbilling-discounts.html https://docs.aws.amazon.com/awsaccountbilling/latest/aboutv2/ri-behavior.html

The correct answer is A. Combined billing.

AWS Organizations is a service that enables you to consolidate multiple AWS accounts into an organization that you create and centrally manage. With multiple accounts, it can be challenging to manage and monitor costs. However, with combined billing, you can simplify the billing process by consolidating the charges from all of your AWS accounts into a single, aggregated bill. This allows you to see the total cost of your AWS usage across all accounts, making it easier to monitor and control your costs.

By using combined billing, you can also take advantage of AWS's volume discounts, which are applied automatically based on your usage across all accounts. AWS volume discounts are applied when you reach certain usage thresholds for specific services, and the more you use, the greater the discount you receive.

Cost optimization is a critical aspect of AWS usage, and combined billing is an essential tool in achieving this. It allows you to see your total costs across all accounts and take advantage of AWS's volume discounts, resulting in significant cost savings over time. It is worth noting that combined billing does not automatically reduce costs, but it is a powerful tool for managing and optimizing costs across multiple accounts.