Posted by Priyanka on 23 July 2023

Introduction

Navigating through the various services offered by Amazon Web Services (AWS) can be quite overwhelming, especially when it comes to managing costs. One particular service that can be costly is the Network Address Translation (NAT) Gateway. In this article, we will discuss how to reduce the cost of NAT Gateway in AWS.

Explanation of NAT Gateway

The NAT Gateway is a service in AWS that enables resources in private subnets to access the internet, while also providing a secure connection between the private subnets and other resources in the VPC. However, the cost of using NAT Gateway can quickly escalate if not properly managed.

Overview of the Issue of High Cost

The NAT Gateway has a fixed hourly rate that is based on the region and availability zone where it is deployed. This hourly rate can quickly add up, particularly for long-running instances.

Understanding the Components of NAT Gateway

To understand how to reduce the cost of NAT Gateway, it is important to understand its components. A VPC is a private network within AWS where resources can be launched. The NAT Gateway is a managed service that sits within the VPC and provides internet access to resources in private subnets.

Introduction to VPC

A Virtual Private Cloud (VPC) is a virtual network that is isolated from other networks within the AWS environment. It allows users to launch resources, such as EC2 instances, within a private network. A VPC also allows users to define subnets where resources can be launched.

Explanation of NAT Gateway in Relation to VPC

NAT Gateway is often used with VPC to allow resources within private subnets to access the internet. NAT Gateway acts as a gateway for these resources by translating the private IP addresses to public IP addresses, which are then used to access the internet.

Overview of the Subnets in VPC

Subnets are smaller networks within a VPC. They allow resources to be launched within a specific IP range and can be used to group resources based on their functionality.

Exploring Alternatives to NAT Gateway

There are alternatives to using NAT Gateway, such as VPC Endpoint.

Introduction to VPC Endpoint

A VPC Endpoint is a private connection between a VPC and AWS services, such as S3 and DynamoDB. It allows resources within a VPC to access AWS services without needing a NAT Gateway.

Comparison between NAT Gateway and VPC Endpoint

While NAT Gateway provides internet access to resources in VPC, VPC Endpoint provides access to AWS services without the need for a NAT Gateway.

Pros and Cons of VPC Endpoint

VPC Endpoint eliminates the need for a NAT Gateway, which can result in cost savings. However, it does not provide internet access to resources in private subnets.

Analyzing Usage Patterns

To reduce the cost of NAT Gateway, it is important to analyze usage patterns.

Understanding the Typical Usage of NAT Gateway

It is essential to understand the typical usage of NAT Gateway to optimize its usage and reduce costs.

Identifying Intermittently-used Resources

Intermittently-used resources can be shut down during periods of low usage to reduce costs.

Identifying Frequently-used Resources

Frequently-used resources can be optimized to reduce usage, which will ultimately lead to cost reduction.

Understanding the Impact of Usage on Cost

By understanding the impact of usage on cost, measures can be implemented to reduce costs.

AWS NAT Gateway Pricing

The cost of an AWS NAT Gateway varies by region and is determined by 3 elements:

• AWS NAT Gateway Hourly Charge: NAT Gateway is charged on an hourly basis.
• (Each partial NAT Gateway-hour consumed is billed as a full hour)
• ‍
• AWS NAT Gateway Data Processing Charge: Applied for each gigabyte processed through the NAT gateway regardless of the traffic’s source or destination.
• ‍
• Data Transfer Charge: Refers to “standard” data transferred “in" to and "out" of EC2
• instance via the NAT Gateway between regions, between availability zones, or to the internet.
• (There are no charges in case data transferred within the same region, or the traffic stays in the same availability zone)

 NAT Gateway Pricing

If you choose to create a NAT gateway in your VPC, you are charged for each “NAT Gateway-hour" that your gateway is provisioned and available. Data processing charges apply for each gigabyte processed through the NAT gateway regardless of the traffic’s source or destination. Each partial NAT Gateway-hour consumed is billed as a full hour. You also incur standard AWS data transfer charges for all data transferred via the NAT gateway. If you no longer wish to be charged for a NAT gateway, simply delete your NAT gateway using the AWS Management Console, command line interface, or API.

Region:

• US East (Ohio)

Price per NAT gateway ($/hour)

Price per GB data processed ($)

$0.045

$0.045

NAT Gateway - Pricing example

Let’s assume you created a NAT gateway and you have an EC2 instance routing to the internet through the NAT gateway. Your EC2 instance behind the NAT gateway sends a 1 GB file to one of your Amazon Simple Storage Service (Amazon S3) buckets. The EC2 instance, NAT gateway, and S3 Bucket are in the same region of the US East (Ohio), and the NAT gateway and EC2 instance are in the same Availability Zone. We calculate your cost as follows:

· NAT Gateway Hourly Charge: NAT Gateway is charged on an hourly basis. For this region, the rate is $0.045 per hour.

· NAT Gateway Data Processing Charge: 1 GB data went through the NAT gateway. The Data Processing charge will result in a charge of $0.045.

· Data Transfer Charge: This is the standard EC2 Data Transfer charge. 1 GB data was transferred from the EC2 instance to S3 via the NAT gateway. There was no charge for the data transfer from the EC2 instance to S3, as it is Data Transfer Out to Amazon EC2 to S3 in the same region. There was also no charge for the data transfer between the NAT gateway and the EC2 instance since the traffic stays in the same Availability Zone using private IP addresses. There will be data transfer charges between your NAT gateway and EC2 instance if they are in a different Availability Zone.

Architecture Optimization

To optimize the architecture of NAT Gateway and reduce costs, the following actions can be taken:

Optimization of Resource Allocation

Resources, such as EC2 instances, should be properly sized to match the expected traffic. By optimizing the resource allocation, unnecessary costs can be avoided.

Resource Bundling

Resources can be grouped together to minimize the number of NAT Gateways needed, which can reduce overall costs.

Enhanced Monitoring for NAT Gateway

Enhanced monitoring can provide insights into usage patterns and identify areas that require optimization, ultimately leading to cost savings.

Autoscaling

Autoscaling is a feature that automatically scales resources based on traffic patterns.

Introduction to Autoscaling

Autoscaling is a powerful feature that can be used to reduce costs associated with NAT Gateway by scaling resources up during periods of high traffic and down during periods of low traffic.

Understanding the Role of Autoscaling in NAT Gateway Cost Reduction

By implementing autoscaling, resources can be scaled up and down according to demand, resulting in cost savings.

Configuring Autoscaling Groups

Autoscaling groups can be configured to ensure that resources are properly scaled according to usage patterns, leading to optimal cost savings.

Implementation of Cost Reduction Strategies

To implement cost reduction strategies for NAT Gateway, the following actions can be taken:

Implementation of Cost Allocation Tags

Cost allocation tags can be added to resources to provide visibility into usage patterns and identify areas that require optimization, ultimately reducing costs.

Configuration of Alerts and Notifications

Alerts and notifications can be configured to provide real-time visibility into usage patterns and identify areas that require optimization, which can lead to cost savings.

Integration of AWS Cost Explorer with Amazon Cloudwatch

By integrating AWS Cost Explorer with Amazon Cloudwatch, insights into usage patterns can be obtained, ultimately leading to cost savings.

Reviewing the Impact of Cost Reduction Strategies

To review the impact of cost reduction strategies on NAT Gateway, the following actions can be taken:

Understanding the Impact of Cost Reduction Strategies

It is essential to understand the impact of cost reduction strategies in order to optimize their usage and reduce costs.

Reporting on Potential Savings

Reports can be generated to provide insight into potential cost savings that can be achieved through implementing cost reduction strategies.

Overview of Further Optimizations

Further optimizations can be made to reduce costs, such as ongoing analysis of usage patterns and resource optimization.

Conclusion

Optimizing the usage and architecture of NAT Gateway can result in cost savings. By analyzing usage patterns, implementing cost reduction strategies, and optimizing resource allocation, it is possible to reduce the cost of NAT Gateway within AWS.