Introduction

Managing AWS costs efficiently is crucial for businesses to prevent unexpected expenses. Automating daily cost monitoring with AWS Lambda and Amazon SNS (Simple Notification Service) ensures that cost fluctuations are detected in real-time, allowing for proactive budget management. This guide outlines how to set up an automated alert system to track AWS usage costs effectively.

Benefits of Automating AWS Cost Monitoring

  • Proactive Cost Management: Avoid surprises by receiving alerts on daily AWS expenditure.
  • Efficiency and Scalability: Automate monitoring without manual intervention.
  • Customizable Notifications: Receive alerts via email, SMS, or other preferred channels.
  • Improved Budgeting: Helps teams stay within financial limits by tracking daily expenses.

Steps to Set Up AWS Cost Monitoring with SNS and Lambda

1. Enable AWS Cost and Usage Reports

Ensure that AWS Cost Explorer is enabled to retrieve detailed usage reports. Navigate to the AWS Billing Dashboard and activate cost reports to get usage insights.

2. Create an Amazon SNS Topic

  • Go to the Amazon SNS console.
  • Click Create Topic and choose Standard type.
  • Assign a relevant name (e.g., AWS-Cost-Alerts).
  • Copy the topic ARN for later use.
  • Subscribe an email or phone number to receive notifications.

3. Develop an AWS Lambda Function

  • Navigate to the AWS Lambda console.
  • Click Create Function and choose Author from scratch.
  • Use Python or Node.js for scripting.
  • Assign an IAM role with AWSBudgetsReadOnlyAccess permission.
  • Implement the script to fetch daily cost reports using AWS Cost Explorer API.
  • Configure the function to publish alerts to the SNS topic when cost thresholds are exceeded.

4. Set Up an AWS CloudWatch Event Trigger

  • In the CloudWatch Events console, create a rule to trigger the Lambda function daily.
  • Choose Schedule Expression (rate(1 day)) for daily execution.
  • Select the Lambda function created earlier as the target.

5. Test and Deploy the Automation

  • Run the Lambda function manually to verify its execution.
  • Check if SNS notifications are delivered correctly.
  • Deploy the function and monitor daily cost alerts.

Best Practices for AWS Cost Monitoring Automation

  • Set Reasonable Cost Thresholds: Define limits based on historical usage patterns.
  • Use Tags for Granular Monitoring: Enable cost allocation tags to track expenses by department or project.
  • Optimize Resource Utilization: Identify underutilized resources and terminate or right-size them.
  • Enable Budget Notifications: Use AWS Budgets to complement Lambda-based alerts.

Conclusion

Automating AWS cost monitoring using AWS Lambda and Amazon SNS simplifies cost tracking and ensures businesses stay within budget. Implementing this proactive strategy helps prevent unexpected cloud expenses and enhances financial management.