How to Set Up Automated Alerts for Newly Purchased AWS Savings Plans

As expanding organizations increasingly rely on AWS infrastructure, the FinOps teams stand at the forefront of managing financial operations within the cloud. With AWS Savings Plans, a tool that promises cost savings through long-term commitments, it becomes vital to ensure these plans are efficiently utilized. The key lies in setting up an effective monitoring system that not only alerts on underutilization but also fits seamlessly into the already existing AWS ecosystem.

In this article, we explore how to set up automated alerts for newly purchased AWS Savings Plans using AWS CloudFormation templates, moving through each step from deployment to potential return actions.

Understanding the Importance of AWS Savings Plans

When opting for AWS Savings Plans, you commit to a one- or three-year plan with predetermined hourly usage. These commitments require vigilant monitoring, particularly given the potential to return savings plans under certain constraints: they must be purchased within the last seven days, within the current calendar month, and have an hourly commitment of $100 or less. Beyond this period, the chance to recoup expenditures diminishes, underscoring the importance of timely alerts.

Deploying Automated Monitoring and Alerts

Overview of the Solution

The solution involves deploying two AWS CloudFormation stacks across different accounts to uphold security and manageability best practices. This includes creating a Step Functions state machine linked with Amazon SNS for consistent communication and troubleshooting, ingrained within the cloud infrastructure.

Key Components:

1. AWS Step Functions: Facilitates the state machine that queries and analyses Savings Plans utilization.
2. Amazon SNS (Simple Notification Service): Manages email notifications sent to the provided addresses.
3. IAM Roles: Securely allows account cross-access for data fetching and execution across AWS Organizations.

Member Account Deployment

1. Log in to the AWS Management Console of your chosen member account.
2. Deploy the CloudFormation Stack:
   • Stack Name: new-sp-utilization-alert-member
   • Enter necessary email addresses in the AlertEmails parameter.
   • Configure account settings including ManagementAccountId, ScheduleExpression, and UtilizationThreshold.
3. Confirm your Subscription to start receiving alerts after the stack creation is complete.
4. Record Output Values for ExecutionRoleArn and StateMachineArn for subsequent utilization.

Management Account Deployment

1. Log into the Management Console using the management account details.
2. Deploy the CloudFormation Stack:
   • Stack Name: new-sp-utilization-alert-management
   • Input the recorded ExecutionRoleArn and StateMachineArn appropriately.
3. Complete the Process once the stack shows as CREATE-COMPLETE.

Testing and Operating the Solution

With both accounts configured, it’s time to test the state machine’s operation:

• Access the Step Functions console in the member account and initiate an execution.
• Monitor Execution Progress through the Events section.
• Receive Notifications for any Savings Plans not meeting utilization benchmarks set by your parameters.

Clean Up

To gracefully undo the configurations, simply delete the respective CloudFormation stacks in both management and member accounts either through the AWS CLI or Management Console.

Analyzing Alerts and Decision Making

Upon receiving alerts, perform an in-depth analysis of utilization metrics and original commitment considerations. Any underutilized Savings Plan within the return window should be evaluated for potential returns, documenting the reasons to improve future strategic planning.

Conclusion

The efficient management of AWS Savings Plans requires a blend of automation tools and strategic oversight. With automated alerts using AWS CloudFormation and associated services, you significantly increase the probability of optimal utilization, safeguarding your organization’s budget and investments. This not only steers the financial ship efficiently but paves the way for informed, data-driven decision-making, reinforcing organizational growth within the cloud landscape.