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Cloud Efficiency Hub

Suboptimal Region for Internet-Only EC2 Instance

The short version

When an EC2 instance is dedicated primarily to internet-facing traffic, regional differences in data transfer pricing can drive a substantial portion of total costs.

PointFive Research

Cloud cost research at PointFive

AWS service
AWS EC2
Category
Compute
Reference
CER-0088
Type
Inefficient Architecture

Explanation

Why the waste happens and who it affects.

Hosting such workloads in a region with higher egress rates leads to elevated expenses without improving performance. Migrating the workload to a lower-cost region can yield significant savings while maintaining equivalent service quality, especially when no strict latency or compliance requirements dictate the original location.

Billing model

The pricing dimensions that drive this cost.

EC2 instances are billed per second based on the selected instance type, operating system, and pricing model (On-Demand, Reserved, or Spot). Data transfer out to the public internet is billed separately per GB, and rates vary by AWS region. Some regions have significantly higher internet egress charges, which can disproportionately increase costs for internet-heavy workloads.

How to detect

5 checks to find it in your estate.

  • Identify EC2 instances whose primary traffic flows are outbound to the public internet rather than within AWS or private networks
  • Review the region associated with each instance and compare public Data Transfer Out pricing against lower-cost regions
  • Assess latency requirements, regulatory considerations, and service availability constraints that may impact regional choices
  • Evaluate application dependencies, user location distribution, and DNS configurations to determine feasibility of migration
  • Validate migration plans with infrastructure, networking, and application teams before execution

How to fix

How to remove the waste.

Migrate internet-focused EC2 instances to regions with lower Data Transfer Out pricing to optimize costs. Use methods such as AMI copies, EBS snapshots, or infrastructure-as-code templates to deploy the instance in the new region. Update DNS records, security groups, IAM roles, and route configurations as needed to complete the migration. Monitor performance after relocation to ensure that user experience and application behavior remain stable.

Documentation

Vendor references for pricing and configuration.