FinTech Companies Can Reduce Costs When Migrating to AWS Cloud

BALTIMORE, MD, UNITED STATES, February 19, 2025 /EINPresswire.com/ -- Migrating to the cloud is a strategic necessity for FinTech firms looking to enhance scalability, security, and operational efficiency. However, cloud migration can be expensive if not optimized properly. By leveraging AWS cost-saving strategies, FinTech businesses can reduce infrastructure expenses while maximizing performance. Sasibhushan Rao Chanthati, Software Engineering Professional, AI Researcher, and IEEE Senior Member Baltimore section, specializing in Artificial Intelligence Applications and Machine Learning. He states, the key cost-saving approaches for FinTech firms migrating to AWS.

1. Use AWS Migration & Cost Optimization Tools:

AWS offers automated tools to streamline migration and optimize costs before deployment.
✅ AWS Migration Hub – Helps track and manage cloud migration, providing cost insights.
✅ AWS Cost Explorer & Trusted Advisor – Analyzes spending patterns and suggests optimizations.
✅ AWS Compute Optimizer – Recommends right-sized instances based on workload needs.

2. Right-Sizing Compute Resources:

One of the biggest cost drains in cloud migration is over-provisioning instances. AWS offers multiple compute pricing models to save costs:
✅ Amazon EC2 Right-Sizing – Identify underutilized instances and downgrade to smaller sizes (T4g, M6g, C6g).
✅ Spot Instances – Save up to 90% by running non-critical workloads on spare AWS capacity.
✅ AWS Graviton Processors – Reduce compute costs by 20% to 40% compared to Intel/AMD instances.
✅ AWS Lambda (Serverless Computing) – Eliminates the need for always-on servers, charging only for execution time.

3. Optimize Data Storage Costs

FinTech companies deal with massive datasets for real-time transactions, risk analysis, and compliance reporting. AWS provides tiered storage to reduce costs:
✅ Amazon S3 Intelligent-Tiering – Moves rarely accessed data to lower-cost storage automatically (saves 20-40%).
✅ Amazon Glacier & Deep Archive – Stores long-term compliance data at 90% lower costs than standard S3.
✅ Amazon RDS/Aurora Serverless – Auto-scales databases, so firms only pay for actual usage.

4. Leverage AWS Reserved & Savings Plans:

Instead of on-demand pricing, FinTech firms can pre-commit to AWS resources to lower costs:
✅ Reserved Instances (RIs) – Prepay for EC2 instances for 1 or 3 years, saving up to 72% over on-demand pricing.
✅ AWS Savings Plans – Commit to a consistent cloud usage level and save 66% on EC2, Lambda, and Fargate services.

5. Implement Kubernetes & Containerization:

Many FinTech apps require high availability, microservices, and real-time processing. Running containers instead of VMs reduces costs:
✅ Amazon EKS (Elastic Kubernetes Service) – Runs Kubernetes workloads with 50% fewer resources.
✅ AWS Fargate – Serverless containers eliminate idle resource costs.

6. Reduce API Gateway & Data Transfer Costs:

Many FinTech firms spend heavily on API usage and inter-region data transfers. Optimize with:
✅ Amazon CloudFront (CDN) – Caches frequently accessed content to reduce API calls and latency costs.
✅ VPC Peering & AWS PrivateLink – Reduces inter-region data transfer fees.
✅ API Gateway Throttling & Caching – Saves 40% on API usage costs by limiting excessive requests.

7. Automate Cost Monitoring & Governance:

Without proper governance, cloud costs spiral out of control. Use AWS tools to automate cost management:
✅ AWS Budgets & Cost Anomaly Detection – Monitors unexpected spikes and sends alerts.
✅ AWS Auto Scaling & Elastic Load Balancing – Auto-scales workloads based on real-time demand.
✅ AWS Control Tower & Organizations – Centralizes FinTech cloud governance for compliance and cost control.

Final Thoughts: Smart AWS Migration Lowers FinTech Costs

✅ Assess workloads upfront using AWS Migration Hub to avoid overprovisioning.
✅ Use Reserved Instances & Savings Plans for predictable workloads.
✅ Optimize storage with Intelligent-Tiering & Glacier.
✅ Implement serverless & Kubernetes-based architectures for cost-efficient scaling.
✅ Use AWS-native monitoring tools to control costs and avoid surprises.

Cloud Migration for Industry: A Deep Dive in Best Techniques and Practices –Amazon Web Services (AWS) S3 and REST API examples and overview of Security Machine Learning concept”.
Author/Owner: Sasibhushan-Rao Chanthati
Amazon Publisher Reference:
https://www.amazon.com/dp/b0d9g1c7n3
Researchgate.net open access Reference: (ResearchGate - CC BY-NC 4.0)
https://www.researchgate.net/publication/385213320_Cloud_Migration_for_Industry_A_Deep_Dive_in_Best_Techniques_and_Practices_-Amazon_Web_Services_AWS_S3_and_REST_API_examples_and_overview_of_Security_Machine_Learning_concept
ISBN Reference:
https://books.isbnservices.com/product/cloud-migration-for-industry-a-deep-dive-in-best-techniques-and-practices-amazon-web-services-aws-s3-and-rest-api-examples-and-overview-of-security-machine-learning-concept/
Research Paper Title: Artificial Intelligence-Based Cloud Planning and Migration to Cut the Cost of Cloud.
Published by, "American Journal of Smart Technology and Solutions, 3(2), 13–24.".
Journal Publisher Reference:
https://doi.org/10.54536/ajsts.v3i2.3210
https://journals.e-palli.com/home/index.php/ajsts/article/view/3210/1603

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