The company stores a large volume of customer records in Amazon S3.

The most cost-effective solution in this case is to apply a lifecycle policy to transition records to Amazon S3 Standard-IA storage after 30 days. Here’s why:

Amazon S3 Lifecycle Policies: Amazon S3 offers lifecycle policies that allow you to automatically transition objects between different storage classes to optimize costs. For data that is frequently accessed in the first 30 days and infrequently accessed after that, transitioning from the S3 Standard storage class to S3 Standard-Infrequent Access (S3 Standard-IA) after 30 days makes the most sense. S3 Standard-IA is designed for data that is accessed less frequently but still needs to be retained, offering lower storage costs than S3 Standard with a retrieval cost for access.

Cost Optimization: S3 Standard-IA offers a lower price per GB than S3 Standard. Since the data will be accessed infrequently after 30 days, using S3 Standard-IA will lower storage costs while still allowing for immediate retrieval when necessary.

Compliance with Regulations: Since the records need to be immediately accessible for the first 30 days, the use of S3 Standard for that period ensures compliance with regulatory requirements. After 30 days, transitioning to S3 Standard-IA continues to meet access requirements for infrequent access while reducing storage costs.

Alternatives Considered:

Option B (S3 Intelligent-Tiering): While S3 Intelligent-Tiering automatically moves data between access tiers based on access patterns, it incurs a small monthly monitoring and automation charge per object. It could be a viable option, but transitioning data to S3 Standard-IA directly would be more cost-effective since the pattern of access is well-known (frequent for 30 days, infrequent thereafter).

Option C (S3 Glacier Deep Archive): Glacier Deep Archive is the lowest-cost storage class, but it is not suitable in this case because the data needs to be accessed immediately within 30 days and on an infrequent basis thereafter. Glacier Deep Archive requires hours for data retrieval, which is not acceptable for infrequent access needs.

Option D (S3 Standard-IA for all records): Using S3 Standard-IA for all records would result in higher costs for the first 30 days, as the data is frequently accessed. S3 Standard-IA incurs retrieval charges, making it less suitable for frequently accessed data.

Amazon S3 Lifecycle Policies

S3 Storage Classes

Cost Management and Data Optimization Using Lifecycle Policies

AWS Data Engineering Documentation