Amazon DynamoDB offers two billing modes: On-Demand and Provisioned. While On-Demand capacity provides flexibility, provisioned capacity can significantly reduce costs for applications with consistent workloads.

Why This Policy Matters

Cost Optimization Strategies

  • Predictable Workloads: Ideal for applications with consistent traffic patterns
  • Capacity Planning: Enables precise resource allocation
  • Budget Control: Provides more granular cost management

Financial Impact

A typical 100GB DynamoDB table with the following characteristics demonstrates significant savings:

  • 5,000 Read Capacity Units (RCUs)
  • 2,000 Write Capacity Units (WCUs)
  • 50 million reads per day
  • 20 million writes per day

Cost Comparison:

  • Provisioned Capacity: $1,400/month
  • On-Demand Capacity: $2,600/month
  • Potential Savings: 46%

Implementation Guide

Infrastructure as Code Example (Terraform)

Before:

resource "aws_dynamodb_table" "example" {
  billing_mode = "PAY_PER_REQUEST"  # On-Demand Mode
  name         = "MyTable"
  hash_key     = "ID"

  attribute {
    name = "ID"
    type = "S"
  }
}

After:

resource "aws_dynamodb_table" "example" {
  billing_mode   = "PROVISIONED"    # Provisioned Mode
  name           = "MyTable"
  read_capacity  = 5000
  write_capacity = 2000
  hash_key       = "ID"

  attribute {
    name = "ID"
    type = "S"
  }
}

Manual Implementation Steps

  1. Analyze historical traffic patterns
  2. Calculate average read and write capacity requirements
  3. Switch billing mode to Provisioned
  4. Set initial read/write capacity units
  5. Enable auto-scaling for dynamic adjustment

Best Practices

  • Monitor Performance: Use CloudWatch metrics
  • Enable Auto-Scaling: Automatically adjust capacity
  • Regular Review: Quarterly workload assessments
  • Use Reserved Capacity: Additional cost savings for long-term commitments

Tools for Implementation

  • AWS CloudWatch: Performance monitoring
  • Infracost: Identify and prevent costly configurations
  • AWS Cost Explorer: Analyze spending patterns

Example Scenarios

E-commerce Platform

  • Workload: Consistent daily traffic
  • Benefit: Predictable capacity planning
  • Estimated Savings: 40-50% compared to On-Demand

SaaS Application

  • Workload: Regular user interactions
  • Benefit: Optimized resource allocation
  • Estimated Savings: 35-45% reduction in database costs

Considerations and Caveats

Potential Drawbacks

  • Requires more upfront planning
  • Risk of under-provisioning
  • Initial configuration complexity

When to Avoid

  • Highly unpredictable workloads
  • Startup applications with unknown traffic patterns
  • Infrequently accessed tables

Infracost Integration

Infracost’s free trial helps you:

  • Scan existing infrastructure
  • Identify cost optimization opportunities
  • Provide instant recommendations for DynamoDB configurations

Frequently Asked Questions (FAQs)

Analyze 3-6 months of CloudWatch metrics to understand consistent usage patterns.

Yes, you can switch between Provisioned and On-Demand once per day.

Your application may experience throttling. Use auto-scaling to mitigate this risk.

No. For truly unpredictable or sporadic workloads, On-Demand might be more cost-effective.

Auto-scaling automatically adjusts read/write capacity based on actual usage, within defined minimum and maximum limits.