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A step-by-step guide for AWS EC2 provisioning using Terraform: Cloud Cost Optimization, AWS EC2 Spot Instances with CloudWatch, SNS and Lambda — Part 3
Optimizing cloud costs is crucial for businesses leveraging cloud services. AWS EC2 Spot Instances provide a cost-effective way to run applications, taking advantage of unused EC2 capacity at significantly lower prices. Here’s a guide on how to use Terraform for cloud cost optimization using AWS EC2 Spot Instances

Table of Contents
· Table of Contents
· Introduction
· What is Amazon EC2?
· How to request a spot instance in AWS for EC2?
∘ How to Create an EC2 Spot Instance with Terraform?
∘ Sentinel cost compliance — tagging
∘ CloudWatch monitoring and cost monitoring of your Terraform configuration for an EC2 instance
∘ Add Lambda functions that start and stop EC2 instances using CloudWatch
· Conclusion
· About me
· References
Introduction
To enhance readability, this handbook is divided into chapters and split into parts. The first, part, “A step-by-step guide for AWS EC2 provisioning using Terraform: HA, ALB, VPC, and Route53 — Part 1”, and the second part “A step-by-step guide for AWS EC2 provisioning using Terraform: HA, CloudFront, WAF, and SSL Certificate — Part 2”, and “A step-by-step guide for AWS EC2 provisioning using Terraform: Cloud Cost Optimization, AWS EC2 Spot Instances — Part 3”, was covered in a separate article to keep the reading time manageable and ensure focused content. The next part or chapter will be published in the next post, upcoming in a few days, “A step-by-step guide for AWS EC2 provisioning using Terraform: VPC peering, VPN, Azure VPN, Site-to-site Connection, tunnels ( multi-Cloud ) — Part 12“ and so much more !!
Cost optimization is a key aspect of effectively managing your AWS cloud environment. AWS offers a variety of tools and strategies to help you reduce costs and get the most out of your cloud investment. Here’s a breakdown of key areas for cost optimization…