You’ve probably heard that cloud costs can spiral out of control before you know it.  The trouble is, AWS spending can be complex, with so many services and usage patterns, it's easy to lose track of where the money’s really going.

That’s exactly why this guide is here, to show you how AWS Cost Explorer can give you the clarity you need to cut costs and make smarter decisions, all while maintaining the performance you depend on.

What is AWS Cost Explorer?

Cost Explorer is your go-to tool for closely monitoring your AWS spend. It lets you view and analyze your usage, costs, and trends, all in a simple, intuitive interface. You can explore data for the past 13 months, forecast what you'll spend in the next 12 months, and even get smart recommendations for Reserved Instances.

It’s free to use through the UI, though if you tap into the API, there’s a small cost per paginated request. You can’t turn it off once enabled, but with preconfigured views and custom options, you’ll have insights ready to go, without wasting time on setup. 

Cost Explorer updates your data daily, but keep in mind that sometimes it might take a little longer depending on your billing setup.

How AWS Cost Explorer Simplifies Your Cost Management

If you're a CTO, SRE, or DevOps engineer, managing AWS costs is likely one of your top concerns. The constant need to optimize cloud spending while maintaining performance can feel like a balancing act. AWS Cost Explorer gives you the power to easily track, visualize, and optimize your AWS usage.

Here’s how it works:

• Data Collection: AWS Cost Explorer automatically pulls detailed usage and cost data, so you don’t have to.
• Interactive Visualizations: It presents your cost data through simple graphs and charts, making it easy to grasp.
• Filtering and Grouping: You can filter costs by services, accounts, regions, or tags, letting you focus on what matters.
• Trend Analysis: The tool helps you spot spending patterns, spikes, or anomalies, allowing you to take action before it’s too late.
• Forecasting: With historical data, it predicts future costs, helping you plan budgets and avoid surprises.
• Cost Optimization Recommendations: AWS Cost Explorer gives you actionable insights to optimize spending, from identifying unused resources to suggesting Savings Plans. While AWS Cost Explorer provides excellent visibility, pairing it with Sedai's autonomous optimization can take your savings further. 

Why AWS Cost Explorer Is Your Best Ally in Managing Cloud Expenses

Keeping track of cloud costs can feel like chasing shadows. AWS Cost Explorer is not just a tool: it's your window into understanding exactly where your money goes and how to make every dollar count.

• See Your Costs Clearly: Visualize your spending by service, account, or usage type. This helps you quickly spot patterns and unexpected spikes before they become problems.
• Plan Your Budget: Use forecasting to predict future expenses and set budgets that keep your costs in check. No more surprises when the bill arrives.
• Get Smart Savings Tips: Based on your past usage, Cost Explorer suggests where you can cut back or optimize, helping you keep more money in your pocket.
• Tailor Your Reports: Create and download custom reports whenever you need, whether that’s daily, monthly, or yearly. Focus on what matters most to your team.
• Catch Cost Surprises Fast: Automated alerts flag any unusual charges so you can investigate and fix issues quickly.

With these benefits in mind, it's best to know some limitations as well to make sure managing your AWS spending becomes less guesswork and more control.

Limitations of AWS Cost Explorer

‍

While AWS Cost Explorer offers useful insights, it comes with certain limitations that can make your cloud cost management hectic. Here are some key drawbacks to keep in mind:

• Data Delays: AWS Cost Explorer relies on the Cost and Usage Report, which can sometimes be outdated. This means you might not have access to the latest cost data when making critical decisions.
• Limited Customization: It doesn’t always provide the level of customization needed to get a truly detailed and tailored view of your AWS costs.
• Short Data Window: AWS Cost Explorer only tracks cost data for the past 13 months, which can be restrictive if you need to analyze costs over a longer period.
• Complexity: For users who aren't familiar with AWS or cost analysis tools, AWS Cost Explorer can feel complicated and difficult to navigate.

Next up, let's break down the different kinds of reports AWS Cost Explorer offers and how to get the most out of them.

Types of Reports That Unlock Your AWS Spending Secrets

Ever feel like your AWS bill shows up as a mystery you just can't crack? AWS Cost Explorer has a variety of reports designed to shed light on your usage and expenses.

Here's a quick look at the main report types you'll find inside AWS Cost Explorer:

1. Cost and Usage Reports

This is your go-to for a detailed view of every dollar spent, covering everything from EC2 instances to S3 storage and data transfers. It helps you track spending trends and spot areas to trim without sacrificing what you need.

2. Savings Plans Report

Newer but powerful, this report shows how your Savings Plans are performing. Since these plans offer lower prices compared to on-demand rates, tracking their use means you can spot fresh chances to save and keep your cost-saving strategies on track.

3. Daily Cost Report

Want to track your day-to-day spending? This report breaks down your cloud spend day by day so you can spot spikes or shifts in usage before they become budget headaches.

4. Monthly Spend Report

This one zooms out to give you a bird’s-eye view of your monthly AWS costs, making it easier to track long-term trends and plan smarter budget moves.

With these reports at your fingertips, you’re better equipped to understand your AWS expenses and take control. Up next, we’ll explore how to actually make the most of AWS Cost Explorer to keep those costs in check.

Step-by-Step Guide to Smarter Spending With AWS Cost Explorer

Trying to make sense of your AWS bills can be like decoding a secret language, with confusing charts, endless line items, and costs that pop up from nowhere. AWS Cost Explorer solves that for you. 

Here’s a walkthrough on how to access the tool, create detailed reports, and analyze your usage to gain control over your spending.

1. Get Started with AWS Cost Explorer

Follow these steps to get started: 

• Log in to the AWS Management Console.
• Locate and click the Cost Explorer link in the left-hand menu.
• If unavailable, request access from your AWS admin or support team.
  

2. Your Cost and Usage Reports

Here is the way to create your cost and usage report:

• Navigate to the Reports section.
• Click Create new report.
• Select Cost and Usage as the report type.
• Choose your desired time frame.
• Apply filters such as region, account, or service to focus the report.
• Save the report to your library for easy future access.
  

3. Dig Into Your Data

Here are some ways to analyze your cost and usage data:

• Use Cost by Service to identify which AWS services cost you the most.
• Check Cost by Usage Type to see spending on on-demand instances, reserved instances, or savings plans.
• Use the Group by feature to segment data by account, region, or other relevant dimensions.
• Explore pre-built reports for quick insights without setup hassle.

Now let's look at how to easily compare your AWS costs over time once you have started mining your data.

Easily Compare Your AWS Costs Over Time

As a CTO or DevOps engineer, you know the importance of keeping a tight grip on your cloud spend. But manually tracking cost variations between time periods can be a major drain on your time and resources. That's where the Cost Comparison feature in AWS Cost Explorer can save you.

With this tool, you can quickly analyze cost changes between two months, pinpointing the largest cost drivers and understanding exactly why they changed. No more hunting through endless reports, the data is at your fingertips in seconds.

What You Get:

• Instantly spot cost changes across services, accounts, and regions.
• Get a detailed breakdown of cost drivers, including shifts in usage and discounts.
• Cut down your manual analysis time from hours to mere seconds.
• Available in Cost Explorer at no extra charge.

Permissions Needed:

To access the Cost Comparison feature, ensure you have the following IAM permissions:

• ce:GetCostAndUsageComparisons
  
  
• ce:GetCostComparisonDrivers

These permissions will allow you to retrieve comparisons and cost drivers.

How to Access in the Console:

You can easily analyze cost changes using the Top Trends widget or Cost Explorer:

1. Open the Billing and Cost Management console at AWS Cost Management Console.
2. From the home page, view the Top Trends widget for the top 10 cost changes from the last two months.
3. Alternatively, in the navigation pane, select Cost Explorer and choose Compare under the report parameters.

With these basics covered, let’s explore some best practices that can help you get even more from AWS Cost Explorer. 

Strategies to Slash Your Cloud Bills with AWS Cost Explorer

You might have been in a similar situation where you checked your AWS bill and felt that familiar sting, but those charges are higher than you expected again. It’s frustrating because without clear visibility, it’s tough to know where to cut costs without risking performance. 

Here are the best ways to make AWS Cost Explorer work for you:

1. Get to Know Your Usage Patterns

Start by digging into your historical data. Spot trends, identify which services you use most, and forecast what your future consumption might look like. This insight is your foundation for smarter cost decisions.

2. Leverage Cost Allocation Tags

Tag your resources by project, team, or department to see exactly where your money’s going. These tags give you granular visibility, helping pinpoint cost drivers and allocate budgets more accurately.

3. Take Advantage of EC2 Spot Instances

Spot Instances let you tap into unused EC2 capacity at steep discounts. AWS Cost Explorer can highlight opportunities to switch to Spot Instances, so you can save without sacrificing compute power. 

4. Optimize S3 Storage with Savings Plans

S3 often holds your backups and archives, but costs can creep up. Use lifecycle policies, choose the right storage classes, and consider S3 Savings Plans, which can cut costs by up to 38%.

5. Commit to Reserved Instances (RIs)

If you have predictable workloads, reserving EC2 instances can slash costs by up to 75%. Use AWS Cost Explorer’s recommendations to buy RIs smartly and adjust them over time.

6. Monitor Costs Regularly

Don’t wait until the bill shocks you. Monitor your spending frequently to catch anomalies early and discover new chances to save.

By following these practices, you’ll turn AWS Cost Explorer into a powerful ally for managing and reducing your cloud expenses. Sedai's AI platform monitors your usage patterns 24/7 for continuous optimization beyond what Cost Explorer shows. It automatically implements the most effective savings strategies (like spot instance deployment and storage tiering) that Cost Explorer can only recommend. 

To explain this further, we’ll explore how Sedai can simplify this entire process, helping you unlock more savings with less effort.

What’s After Cost Tracking? Teams Are Using Sedai to Find Out

Tools like AWS Cost Explorer give teams a snapshot of where their cloud storage dollars are going, but understanding the why and acting on it in real time remains a challenge. As storage footprints grow, so do the complexities of managing tiering, lifecycle policies, and data accessibility.

That’s why some teams are using platforms like Sedai on top of their existing cost tools. By analyzing storage patterns and automating optimizations, such as tier transitions or data compression, Sedai helps teams transition from cost reporting to cost control without sacrificing performance or availability.

Final Thoughts

As cloud environments grow, so does the complexity of keeping costs in check. Tools like AWS Cost Explorer give visibility into spend, but turning that data into meaningful savings isn’t always straightforward.

This guide has broken down the key levers for optimizing AWS storage—from understanding pricing models to identifying common pitfalls.

For teams looking to go further, platforms like Sedai help automate what’s otherwise time-consuming: analyzing patterns, spotting inefficiencies, and applying optimizations in real time. While AWS tools show you where the money’s going, Sedai helps make sure it’s going to the right places.

Join us at Sedai and discover solutions that can help you build efficiency and reduce storage costs in real time.

FAQ

1. What is AWS Cost Explorer, and how does it help reduce cloud expenses?
AWS Cost Explorer is a powerful tool that helps you visualize, understand, and manage your AWS spending. Tracking usage patterns and offering detailed cost reports helps identify cost-saving opportunities, allowing you to optimize your cloud resources and reduce unnecessary expenses.

2. How can I use AWS Cost Explorer to track my AWS usage effectively?
With AWS Cost Explorer, you can set up custom reports that break down your spending by service, linked account, or even region. This data allows you to pinpoint which areas of your infrastructure are consuming the most resources and identify opportunities for cost reduction.

3. Can I set cost budgets in AWS Cost Explorer?
Yes, AWS Cost Explorer allows you to set and track budgets for specific services or accounts. It can send notifications if you exceed your budget, helping you stay within your desired spending limits and avoid unexpected charges.

4. How do Reserved Instances and Savings Plans affect my AWS spending?
AWS offers Reserved Instances and Savings Plans that allow you to commit to using specific services over a set term (e.g., one or three years) in exchange for discounted pricing. These options can significantly reduce your long-term AWS costs if you have predictable usage.

5. How can Sedai help with AWS cost optimization?
Sedai’s AI-powered cloud management platform enhances your ability to optimize cloud costs, just like AWS Cost Explorer. By using advanced analytics, Sedai offers personalized insights and recommendations to further streamline your cloud infrastructure, ensuring you never overspend while maximizing efficiency.