Easiest Way to Set-Up Cloud Cost-Effective Environment for a Small Tech Startup and How AWS Budgets Makes It Easy
Introduction to the AWS Management Console

The AWS Management Console is your gateway to managing Amazon Web Services. It’s a web-based interface that allows you to access and manage AWS services. When you first log in, you’ll be greeted with a dashboard that provides an overview of your AWS resources and services. The console is designed to be user-friendly, but it can be a bit overwhelming at first due to the sheer number of services available though the interface provide documentation to make surfing AWS console fun.

1. Navigating Through Different Services • EC2 (Elastic Compute Cloud)

EC2 is one of the most popular services in AWS. It allows you to create and manage virtual servers, known as instances. To navigate to EC2, simply click on the “Services” menu at the top of the console, then select “EC2” under the “Compute” category. Once you’re in the EC2 dashboard, you can launch new instances, manage existing ones, and configure security groups. Above is a picture explanation of how the AWS EC2 model works to create a Virtual server
• S3 (Simple Storage Service)

S3 is a scalable storage service that allows you to store and retrieve any amount of data. To access S3, go to the “Services” menu and select “S3” under the “Storage” category. In the S3 dashboard, you can create buckets, upload files, and set permissions. One important thing to note is that S3 is designed for high durability and availability, making it a great choice for storing critical data. The importance of AWS S3 can not be overemphasized as it is very important in the modern day computing for safe securing of data an making data more readily available for easy usage.
• IAM (Identity and Access Management)

IAM is used to manage access to AWS resources. It allows you to create users, groups, and roles, and assign permissions to them. To navigate to IAM, click on the “Services” menu and select “IAM” under the “Security, Identity, & Compliance” category. In the IAM dashboard, you can manage user access, create policies, and configure multi-factor authentication (MFA).
When working with AWS, there are several important settings and pieces of information to keep in mind:

1. Billing and Cost Management: Always keep an eye on your billing dashboard to monitor your AWS usage and costs. You can set up billing alerts to notify you when your usage exceeds a certain threshold.
2. Security Groups: Security groups act as virtual firewalls for your instances. Make sure to configure them properly to allow only the necessary traffic to your instances.
3. Regions and Availability Zones: AWS services are available in multiple regions around the world. When launching resources, choose the region that is closest to your users to reduce latency.
4. Tags: Use tags to organize and manage your AWS resources. Tags are key-value pairs that you can assign to resources to make them easier to identify and manage.

5. Backups: Regularly back up your data to prevent data loss. AWS offers several backup solutions, including AWS Backup and S3 versioning.

6. Root User vs. IAM Users
   AWS account starts with a root user, which has full access to all services which can also be regarded as the main user of the account. However, it’s recommended to use IAM users for daily operations to enhance security. Find below a table outlining the main difference between the two types of users offered by AWS
   S/N Root Users IAM Users
   1 Full access Limited access
   
   2 Single account Multiple users
   
   3 High risk of security breach Lower risk
   
   4 Use for critical tasks only | Use for everyday tasks

7. IAM (Identity and Access Management)
   As briefly explained earlier, the AWS IAM service can be described as the Human resource of the cloud computing service which grant access and what level of access a peculiar individual can have in an organization database on the AWS platform.
   Steps to Create an IAM User:

8. Sign in to the AWS Console: Use your root account credentials to access AWS then open the IAM service in the AWS console.

9. Navigate to Users: Click on the “Users” tab and then “Add user.”

10. User Details: Enter the username and select the type of access or policy to assign to the IAM user being created.

11. Permissions: Attach existing policies directly or add the user to a group with the necessary permissions.

12. Tags: Optionally, add tag to the user for easier management and identification.

13. Review and Create: Review the settings and create the user. Download the .csv file containing the user’s credentials or use the mail option to send the credential to the users.
    Assigning IAM Policies and Permissions
    Policies define what actions users and groups can perform on AWS resources. AWS offers both managed policies, like AdministratorAccess, Job functions policies and custom policies to meet specific security needs.
    How to Create Policies:

14. Go to “Policies” in the IAM console and click “Create policy.”

15. Choose a service and specify actions (e.g. EC2 fullAccess, S3 fullAccess ).

16. Attach the policy to a user, group, or role.

17. Cost Monitoring and Management
    Before jumping into getting up budget on AWS, firstly let talk about AWS Budget, AWS Budgets allows you to establish budgets to monitor your expenses and usage, providing alerts when your spending goes below a predefined limit. AWS is designed to accommodate workloads of any scale, making it crucial to have a system to detect cost overruns or unexpected expenditures before scaling up. Implementing a budget early on ensures you are set up for success and fosters good cost-management practices from the beginning.
    Setting Up Budget on AWS
    Step 1: Select a target amount
    The first step is to establish a monthly budget value.
    Step 2 – Create the budget in AWS Budgets
    After you’ve determined your target value, go to AWS Budget and create a budget. Since the goal is to make sure you don’t spend too much money across all services, choose the Cost budget, which will keep track of your dollar spend.

Step 3 – Set up notifications
Aws allows setting up alerts to notify you when your spending hits specific thresholds. It’s important to keep an eye on your expenses without being overwhelmed by too many notifications. Therefore, we suggest starting with two alert levels: one at 50% and another at 75% of your budget. This way, you’ll receive an email when you reach these points.

1. Conclusion Getting a hand on cloud environment from the start is crucial for any small tech startup looking to balance performance and cost. The AWS Management Console offers a handy and user-friendly way to navigate it’s many services, including EC2, S3, and IAM, so you can build a solid infrastructure that fits your needs. Understanding the difference between root and IAM users, and leveraging AWS tools like AWS Budgets for tracking and managing costs, will help you keep your spending in check as you grow. Setting up budgets and alerts means you won’t be caught off guard by unexpected expenses, letting you focus on what really matters: innovation and growth. With these practices in place, you'll be in a great position to manage your cloud environment effectively while keeping costs under control.