What's inside.
AWS cost optimization is treated by most organizations as a set of disconnected tactics: turn off idle EC2 instances, buy some Reserved Instances, maybe run a Cost Explorer report. The result is a fragmented program that delivers single-digit percentage savings before plateauing. The AWS Cost Optimization Framework is the operating model we use across 500+ engagements to deliver an average 38% AWS cost reduction — and to sustain it.
The framework organizes AWS optimization into nine domains: commercial structure, commitment portfolio, rate optimization, usage optimization, architecture, data and egress, FinOps governance, vendor leverage, and procurement controls. Each domain has a defined set of levers, owner roles, measurement model, and rate-of-change expectation. The framework treats commercial negotiation and technical optimization as a single program — because in practice they reinforce each other.
This white paper documents the full framework: the nine domains, the levers within each domain, the sequencing model for first-time and renewal-cycle engagements, and the FinOps operating model that institutionalizes savings. The 2026 edition incorporates Bedrock and AI workload optimization, the post-egress-reform multi-cloud landscape, and updated EDP renewal mechanics.
Table of contents
- Executive summary — the nine-domain framework at a glance
- Domain 1 — Commercial structure (EDP, PPA, custom terms)
- Domain 2 — Commitment portfolio (Savings Plans, RIs, custom commits)
- Domain 3 — Rate optimization (Marketplace, private offers, channel)
- Domain 4 — Usage optimization (right-sizing, scheduling, eliminating waste)
- Domain 5 — Architecture (Graviton, serverless, container density, region strategy)
- Domain 6 — Data and egress (storage tiering, transfer minimization)
- Domain 7 — FinOps governance (allocation, accountability, anomaly detection)
- Domain 8 — Vendor leverage (multi-cloud BATNA, account team management)
- Domain 9 — Procurement controls (approval flows, audit, segregation of duties)
- Appendix A — sequencing model for first-time and renewal engagements
- Appendix B — FinOps operating model and team structure
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Built on 500+ engagements.
Every figure, benchmark, and recommendation in this white paper is grounded in primary data from real AWS engagements. We have advised on more than $2.4 billion in AWS spend across 500+ engagements, spanning financial services, SaaS, media, retail, healthcare, public sector, and AI-native companies. The data set is anonymized and aggregated; no individual customer agreement is identifiable.
This white paper is buyer-side analysis. It is not affiliated with, sponsored by, or reviewed by Amazon Web Services. The recommendations reflect what works in negotiation against AWS's standard playbook, not AWS's preferred customer behavior. Where the two diverge, we have written from the customer's perspective.