In the previous subchapter, Compute Optimizer recommended the optimal size for our resources. That technique—adjusting the size of what you use to what you really need—is called rightsizing, and it is one of the most direct and effective ways to save money in the cloud without losing performance. It is so important that it deserves its own subchapter. The idea is simple but powerful: don’t pay for capacity you don’t use.
The problem: oversizing “just in case”
A very common mistake, inherited from the physical server mentality, is to choose resources larger than necessary “just in case.” In the era of physical servers this made some sense (buying a server was an investment for years, and upgrading later was difficult). But in the cloud it is a waste of money:
Contracted server: ████████████████ (capacity: 16 GB RAM, 8 CPUs)
Actual usage: ███ (uses: 2 GB RAM, 1 CPU)
└─ you pay for ALL this, use only this ─┘
→ you’re paying ~8 times more than you needYou pay for all that capacity every hour, whether you use it or not. Multiplied by many resources and many months, it’s a huge amount of wasted money.
What is rightsizing
Rightsizing means adjusting the size of each resource to what it really needs: not more (you waste money) nor less (it falls short and runs slowly). It’s about finding the “just right size” based on actual usage, not assumptions.
BEFORE (oversized): large server, uses 10% → wasteful AFTER (rightsized): medium server, uses 60% → efficient → same user performance, LOWER cost
Analogy: rightsizing is like choosing the right clothing size. If you buy an XXL when you wear an M, the clothes are way too big (you paid extra for fabric you don’t need). If you buy an S, it’s tight and uncomfortable (too small). The M size, the one that fits you, is perfect: comfortable and without waste. Rightsizing is giving each resource “its size.”
Another analogy: it’s like renting the right car for your trip. If you’re just going to the office alone, you don’t rent a 50-seat bus (you pay for the whole thing just for yourself). But if you’re going with the whole family and luggage, a tiny compact car won’t do. You choose the car that fits your real need.
How rightsizing is done
Rightsizing is based on real usage data, not intuition. The typical process:
- Measure the actual usage of your resources over time (with CloudWatch, subchapter 24.1, and with Compute Optimizer, subchapter 25.2): how much CPU, memory, etc., do they really use?
- Identify the oversized ones: those that use only a small fraction of their capacity.
- Adjust the size to a smaller one that still covers actual usage with some margin.
- Verify that after the change everything still performs well.
⚠️ Be careful not to overdo it: the goal is not to choose the smallest and cheapest resource possible, but the right one. If you cut too much, the resource falls short, runs slowly, and worsens the user experience (or crashes). Rightsizing is about balance: the smallest size that comfortably covers your real need, leaving room for spikes.
Rightsizing and cloud elasticity
Rightsizing is possible and safe thanks to a unique advantage of the cloud: changing size is easy and reversible. Remember elasticity (subchapter 1.3) and autoscaling (subchapter 13.3):
- If you fall short, increasing the size takes just minutes (unlike buying a new physical server).
- With autoscaling, you don’t even have to guess: the system adds or removes resources according to real demand, doing “automatic rightsizing” of the quantity.
This ease of readjustment is what makes rightsizing low risk: if you make a mistake, you can fix it right away. That’s why you can afford to choose tight sizes instead of inflating them “just in case.”
Real world example: a company migrated its applications to AWS by copying the size they had on their physical servers (which were huge “just in case”). After a few months, they review with Compute Optimizer and discover that most of their servers use less than 15% of their capacity. They do rightsizing: they reduce each server to a size according to its actual usage, leaving room for spikes. Result: the compute bill drops by almost half, and users don’t notice any difference (performance is the same, because the removed capacity wasn’t being used). It’s literally like stopping throwing money away.
Beyond servers
Rightsizing applies to many resources, not just EC2 servers:
- Databases (RDS, Chapter 8): choosing the right instance size.
- Lambda (Chapter 14): assigning the right amount of memory (which also affects performance and cost).
- Storage: using the appropriate storage class (remember the S3 classes, subchapter 5.x, for infrequently accessed data).
The philosophy is always the same: pay for what you need, not for what’s left over.
What you should remember
- Oversizing “just in case” (inherited from physical servers) is a waste of money in the cloud: you pay for capacity you don’t use, every hour.
- Rightsizing is adjusting the size of each resource to what it really needs: not too much (wasteful) nor too little (falls short). Like choosing the right clothing size or the right car for the trip.
- It’s based on real usage data (CloudWatch, Compute Optimizer), not intuition: measure → identify oversized → adjust → verify.
- ⚠️ The goal is the right size, not the cheapest: cutting too much worsens performance. It’s about balance, leaving room for spikes.
- It’s safe thanks to the elasticity of the cloud: changing size is easy and reversible, and autoscaling adjusts the quantity automatically.
- Applies to servers, databases, Lambda, and storage. Philosophy: pay for what you need, not for what’s left over.
In the next subchapter we’ll see another great lever for savings, but through a different path: committing to usage in exchange for discounts, with Savings Plans and Reserved Instances.
Cloud, AWS & Terraform — From Zero to Expert
Chapter 1 · What is cloud computing
- 1.1 The traditional client-server model
- 1.2 Problems the cloud came to solve
- 1.3 On-premise vs cloud vs hybrid
- 1.4 The three service models: IaaS, PaaS, SaaS
- 1.5 The five pillars of cloud (according to NIST)
- 1.6 Real advantages: elasticity, pay-as-you-go, global availability
Chapter 2 · The cloud market and major providers
- 2.1 AWS, Azure and GCP: differences and market share
- 2.2 Why learn AWS first
- 2.3 Concepts that are universal among providers
Chapter 3 · Regions, availability zones and edge
- 3.1 What is an AWS region and how to choose it
- 3.2 Availability Zones: high availability by design
- 3.3 Edge locations and CloudFront
- 3.4 Latency, resilience and data sovereignty
Chapter 4 · Compute: EC2
- 4.1 Instances: types, families and when to choose each
- 4.2 AMIs, key pairs and Security Groups
- 4.3 Instance lifecycle
- 4.4 Elastic IPs and Placement Groups
- 4.5 Savings Plans vs Reserved vs On-Demand vs Spot
Chapter 5 · Storage: S3
- 5.1 Buckets, objects and keys
- 5.2 Storage classes (Standard, IA, Glacier…)
- 5.3 Versioning and object lifecycle
- 5.4 Bucket policies and ACLs
- 5.5 Static website hosting
Chapter 6 · Networking: VPC
- 6.1 What is a VPC and why you need it
- 6.2 Public and private subnets
- 6.3 Internet Gateway and NAT Gateway
- 6.4 Route Tables and Network ACLs
- 6.5 VPC Peering and endpoints
Chapter 7 · Identity and access: IAM
- 7.1 Users, groups, roles and policies
- 7.2 The principle of least privilege
- 7.3 Identity-based vs resource-based policies
- 7.4 MFA and temporary credentials (STS)
- 7.5 IAM security best practices
Chapter 8 · Managed databases
- 8.1 RDS: engines, Multi-AZ and read replicas
- 8.2 Aurora and its advantages over vanilla RDS
- 8.3 DynamoDB: key-value / document model
- 8.4 ElastiCache for in-memory cache
- 8.5 When to use each type of database
Chapter 9 · Why Infrastructure as Code
- 9.1 Problems with manual provisioning
- 9.2 Declarative vs imperative IaC
- 9.3 Terraform vs CloudFormation vs Pulumi vs CDK
- 9.4 The plan → apply → destroy cycle
Chapter 10 · HCL: the Terraform language
- 10.1 Resource, variable, output, locals blocks
- 10.2 Data types: string, number, bool, list, map, object
- 10.3 Expressions, references and built-in functions
- 10.4 Conditionals and loops (count, for_each, for)
Chapter 11 · Providers and state
- 11.1 How the AWS provider works
- 11.2 The terraform.tfstate file and its importance
- 11.3 Local state vs remote state (S3 + DynamoDB)
- 11.4 Essential commands: init, plan, apply, destroy, fmt, validate
Chapter 12 · Your first real infrastructure in Terraform
- 12.1 Create a VPC with subnets from scratch
- 12.2 Launch a public EC2 instance
- 12.3 Associate a Security Group and an Elastic IP
- 12.4 Outputs and references between resources
- 12.5 Team workflow: PR review of plans
Chapter 13 · Load balancing and auto scaling
- 13.1 Application Load Balancer vs Network Load Balancer
- 13.2 Target Groups, listeners and rules
- 13.3 Auto Scaling Groups: policies and metrics
- 13.4 Warm pools and lifecycle hooks
Chapter 14 · Serverless with Lambda
- 14.1 The Lambda execution model
- 14.2 Triggers: API Gateway, S3, DynamoDB Streams, SQS
- 14.3 Dependency management and layers
- 14.4 Cold starts and strategies to reduce them
- 14.5 Limits and anti-patterns
Chapter 15 · Messaging and events
- 15.1 SQS: standard vs FIFO queues, DLQ
- 15.2 SNS: topics, subscriptions, fan-out
- 15.3 EventBridge: event buses and rules
- 15.4 Patterns: pub/sub, decoupling, saga
Chapter 16 · Content delivery and DNS
- 16.1 Route 53: record types and routing policies
- 16.2 CloudFront: distributions, caches and origins
- 16.3 ACM: free SSL/TLS certificates
- 16.4 WAF integrated with CloudFront
Chapter 17 · Containers on AWS
- 17.1 Docker: quick review of key concepts
- 17.2 ECR: private image registry
- 17.3 ECS: task definitions, services, Fargate vs EC2
- 17.4 EKS: when Kubernetes and when not
Chapter 18 · Modules: reuse and composition
- 18.1 Anatomy of a Terraform module
- 18.2 Input variables, outputs and dependencies
- 18.3 Local modules vs Terraform Registry modules
- 18.4 Module versioning with Git tags
- 18.5 Design of generic vs domain-specific modules
Chapter 19 · Workspaces and environment management
- 19.1 Terraform workspaces: use cases and limitations
- 19.2 Directory strategy per environment (dev/stg/prod)
- 19.3 Terragrunt: DRY for environment configurations
- 19.4 Environment variables and .tfvars files
Chapter 20 · Remote backends and locking
- 20.1 Configure S3 + DynamoDB as backend
- 20.2 State locking: avoiding team corruption
- 20.3 State migration between backends
- 20.4 terraform import: bring existing resources into state
Chapter 21 · Infrastructure testing
- 21.1 Terraform validate and fmt in CI
- 21.2 Checkov and tfsec: static security analysis
- 21.3 Terratest: integration tests in Go
- 21.4 Contract testing between modules
Chapter 22 · Terraform in CI/CD
- 22.1 Basic pipeline: lint → plan → apply in GitHub Actions
- 22.2 Atlantis: GitOps for Terraform
- 22.3 Terraform Cloud / HCP Terraform
- 22.4 Drift detection and automatic reconciliation
Chapter 23 · Defense in depth
- 23.1 AWS Organizations and Service Control Policies
- 23.2 AWS Config: continuous compliance
- 23.3 GuardDuty: threat detection
- 23.4 Security Hub: centralized view
- 23.5 KMS: key management and rotation
- 23.6 Secrets Manager vs Parameter Store
Chapter 24 · Observability: logs, metrics and traces
- 24.1 CloudWatch Logs, metrics and alarms
- 24.2 CloudWatch Dashboards and Contributor Insights
- 24.3 X-Ray: distributed tracing
- 24.4 OpenTelemetry on AWS
- 24.5 Managed Grafana and Managed Prometheus
Chapter 25 · Cost optimization
- 25.1 AWS Cost Explorer and budgets with alerts
- 25.2 Trusted Advisor and Compute Optimizer
- 25.3 Rightsizing: how to detect overprovisioning
- 25.4 Savings Plans vs Reserved Instances: strategic decision
- 25.5 FinOps: culture and processes to control spending
Chapter 26 · High availability and disaster recovery
- 26.1 RTO and RPO: defining objectives
- 26.2 Strategies: backup/restore, pilot light, warm standby, multi-site
- 26.3 Route 53 health checks and automatic failover
- 26.4 AWS Backup: centralized backup policy
Chapter 27 · AWS Well-Architected Framework
- 27.1 The six pillars: operational excellence, security, reliability, performance efficiency, cost optimization, sustainability
- 27.2 Well-Architected Tool: formal reviews
- 27.3 How to apply the framework in design decisions
Chapter 28 · Serverless architectures at scale
- 28.1 Event-driven architecture with Lambda + EventBridge
- 28.2 Saga pattern for distributed transactions
- 28.3 Step Functions: orchestration of complex workflows
- 28.4 Lambda@Edge and CloudFront Functions
Chapter 29 · Data platforms on AWS
- 29.1 Data Lake with S3, Glue and Athena
- 29.2 Kinesis Data Streams and Firehose for streaming
- 29.3 Redshift: data warehousing at scale
- 29.4 Lake Formation: data governance
Chapter 30 · Multi-account and landing zones
- 30.1 Why separate workloads into different accounts
- 30.2 AWS Control Tower and Account Factory
- 30.3 Centralized log and security management
- 30.4 Terraform at multi-account scale with shared modules
Chapter 31 · Platform Engineering and Internal Developer Platform
- 31.1 Golden paths and abstractions over Terraform
- 31.2 AWS Service Catalog
- 31.3 Backstage as a developer portal
- 31.4 Terraform modules as internal product
Chapter 32 · Relevant AWS certifications
- 32.1 Cloud Practitioner: is it worth it?
- 32.2 Solutions Architect Associate → Professional
- 32.3 DevOps Engineer Professional
- 32.4 Specialty: Security, Database, Networking
- 32.5 HashiCorp Terraform Associate
Chapter 33 · Projects to consolidate what you've learned
- 33.1 Project 1: serverless blog (S3 + CloudFront + Lambda + DynamoDB)
- 33.2 Project 2: REST API with ECS Fargate + RDS + ALB
- 33.3 Project 3: data platform with Glue + Athena + Redshift
- 33.4 Project 4: multi-account landing zone with Terraform and Control Tower
