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Describe the purpose of AWS Cost Explorer.

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AWS Cost Explorer is a tool provided by Amazon Web Services (AWS) that enables users to visualize, analyze, and manage their AWS costs and usage. It is designed to help organizations understand their AWS spending patterns, identify cost drivers, and make informed decisions to optimize their resource usage and reduce costs. Below is a technical explanation of the purpose and functionality of AWS Cost Explorer:

  1. Data Collection:
    AWS Cost Explorer collects and aggregates detailed usage and cost data from various AWS services. It integrates with AWS CloudWatch, AWS Budgets, and other AWS services to gather information on resource usage, data transfer, and associated costs.
  2. Data Storage:
    The collected data is stored in the AWS Cost and Usage Report (CUR), a comprehensive dataset that provides detailed information about the resources used and associated costs. AWS Cost Explorer leverages this stored data to generate meaningful visualizations and insights.
  3. Visualization and Analysis:
    AWS Cost Explorer offers a web-based interface that allows users to explore and analyze their AWS spending in a user-friendly way. It provides various pre-built reports, charts, and graphs to visualize cost and usage data over specific time periods. Users can view costs by services, linked accounts, or custom attributes.
  4. Cost Filtering and Grouping:
    Users can filter and group cost data based on different dimensions such as AWS service, region, instance type, and more. This granularity allows for a detailed breakdown of costs, making it easier to identify specific areas where optimization can be applied.
  5. Forecasting:
    AWS Cost Explorer provides forecasting capabilities, allowing users to project their future spending based on historical data. This helps organizations plan their budgets more effectively and make informed decisions about resource allocation.
  6. Cost Anomaly Detection:
    The tool includes features for detecting anomalies in cost and usage patterns. This can be crucial in identifying unexpected spikes in spending, which may be due to inefficiencies, misconfigurations, or unexpected changes in resource usage.
  7. Custom Reports:
    Users can create custom reports tailored to their specific needs. This flexibility allows organizations to focus on specific aspects of their AWS usage, ensuring that they get the most relevant insights for their unique requirements.
  8. Integration with AWS Organizations:
    AWS Cost Explorer integrates with AWS Organizations, enabling users to analyze costs across multiple linked accounts. This is particularly useful for organizations with a multi-account structure, providing a centralized view of spending.
  9. Cost Management and Optimization Recommendations:
    AWS Cost Explorer offers cost management and optimization recommendations based on AWS best practices. These recommendations can help users implement changes to their infrastructure and configurations to reduce costs.