Quick MoM Cost Analysis with Cost Comparison in AWS Cost Explorer
In an era where the adoption of cloud technology scales at an unprecedented pace, many organizations find themselves wrestling with the complexities of cloud cost management. As digitization drives towards greater cloud reliance, a pressing concern emerges for businesses of all sizes: understanding why cloud costs fluctuate from one month to the next. This challenge has become an all-too-common conversation among IT and financial managers worldwide, often culminating in significant time and resource expenditure trying to make sense of month-over-month (MoM) cost shifts.
Enter AWS Cost Explorer’s new cost comparison feature, a sophisticated tool engineered to provide automated MoM cost change analysis. Designed to streamline and simplify the daunting task of cost variation analysis, this feature empowers organizations to swiftly pinpoint and delve into the pivotal causes of these changes, exploring dimensions like services, accounts, and regions effortlessly.
The Cost Analysis Conundrum
Consider the scenario of a rapidly growing technology startup confronted with a substantial increase in its AWS bills from June to July 2024. Traditionally, their financial operations (FinOps) team would have navigated a labyrinthine process of manually aggregating data, endeavoring to identify the errant cloud utilization patterns amidst accounts and services. AWS Cost Explorer’s new functionality promises a revolution in this process, transforming arduous analysis into a seamless, efficient experience.
Use Case: Analyzing Month-over-Month Cost Changes
The startup’s journey begins with accessing the AWS Billing and Cost Management console. Here, they are greeted by the “Top Trends” widget, a cornerstone feature offering a snapshot of the most significant cost changes over the preceding two months. It highlights the top variations in clear, comparative metrics—absolute dollar differences, percentage shifts—and allows users to drill into these trends via the Compare view in Cost Explorer.
For this startup, one notable trend was the eye-catching increase in Amazon Redshift costs, a spike that saw expenses balloon by $385,621.82, an alarming 189.87% rise from April to May 2025. Such transparency into cost changes immediately identified areas in need of deeper scrutiny.
Deep Dive into Cost Fluctuations
Intrigued, the FinOps team selected the Redshift cost increase trend, which guided them to Cost Explorer’s Compare view for an in-depth breakdown. Here, they confirmed the comparative timeframe (April 2025 versus May 2025), zeroing in on the service dimension specific to Redshift.
The analysis sourced straightforward explanations: shifts in instance usage patterns, the upfront costs for Reserved Instances, and the effects of any applicable discounts. This detailed insight equips financial planners with the narrative needed to explain cost escalations to stakeholders effectively.
Tailored Analysis: Drilling Down into Specific Drivers
AWS Cost Explorer doesn’t stop at surface-level analysis. The team discovered a $65,360.49 increase attributed to a particular instance, prompting a deeper examination. By following the link in the Top Trends widget, they embarked on a granular analysis of usage, filtering by selected parameters to unravel the cost surge’s genesis. In this instance, a new workload without prior spending history was identified, alongside the discount impacts, underscoring the necessity of nuanced, customized analysis.
Building on these capabilities, AWS organizations can further automate cost insights through the AWS Cost Explorer API, integrating these analyses into existing dashboards and workflows—thereby embedding cost efficiency deep into the fabric of their cloud operations.
Conclusion
The AWS Cost Explorer’s cost comparison feature stands as a beacon for cloud financial management, cutting through the complexities of cost variation analysis. By automating this process, businesses can pivot towards more strategic decision-making, driving efficiency and financial clarity.
This feature isn’t just a tool; it’s an invitation for organizations to gain profound insights into their cloud spending dynamics and make informed, data-driven decisions. As we continue to navigate this cloud-first world, tools like these help ensure that financial stewardship is not only achievable but is a refined art within reach for all.
We are eager to see the creative ways businesses will harness AWS Cost Explorer’s capabilities to illuminate their cloud financial strategies. For those ready to take the plunge, further resources and documentation are readily available for exploration.