How aws pricing works
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How AWS Pricing Works. Jinesh Varia [email protected] Technology Evangelist. AWS Pricing Philosophy. Pay as you go No minimum commitments or long-term contracts required Capex -> Opex Turn off when you don’t need it Pay less per unit when you use more

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How AWS Pricing Works

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How aws pricing works

How AWS Pricing Works

Jinesh Varia

[email protected]

Technology Evangelist


Aws pricing philosophy

AWS Pricing Philosophy

  • Pay as you go

    • No minimum commitments or long-term contracts required

    • Capex -> Opex

    • Turn off when you don’t need it

  • Pay less per unit when you use more

    • Tiered Pricing and Volume Discounts

  • Pay even less when you reserve

    • Reserved pricing

  • Pay even less as AWS grows

    • Efficiencies, optimizations and economies of scale result in passing the savings back to you in the form of lower pricing

  • Custom Pricing


How aws pricing works

Did you know?

AWS Free Usage Tier

Data Transfer

Free Services

No Charge for Inbound Data Transfer

No Charge for Data Transfer Between Services within a region

New Customers

Amazon EC2

(Linux & Windows)

Amazon ELB

Amazon S3

Amazon EBS

For all customers

Amazon SQS/SNS

Amazon DynamoDB

Amazon SES

Amazon SWF

And more…

AWS Elastic Beanstalk

AWS CloudFormation

AWS IAM

Auto Scaling

Consolidated Billing


How aws pricing works

19 price cuts in last 5 years

“It makes me look so good in front of my CFO. When he [CFO] sees the savings in our AWS monthly bill, he thinks that it is me who is working hard on driving the costs down and increasing efficiency of the company’s infrastructure. I get all the credit for all the hard work you guys are putting in.”.

Massive economies of scale and efficiency improvements allow us to continually lower prices.


Amazon s3

Amazon S3

Amazon CloudFront

  • Storage Class

    • Standard Storage vs. Reduced Redundancy Storage (RRS)

  • Storage

    • Number and size of objects stored in your Amazon S3 buckets

  • Requests

    • Number and type of requests (GET vs PUT/COPY)

  • Data transfer

    • Amount of data transferred out of the Amazon S3 region.

  • Traffic Distribution

    • Data transfer and request pricing vary across geographic regions

    • Pricing is based on the edge location where content is served

  • Requests

    • The number and type of requests (HTTP or HTTPS) made

    • Geographic region in which the requests are made.

  • Data Transfer Out

    • Amount of data transferred out of your Amazon CloudFront edge locations.


Demo let s estimate how much it will cost to deploy a simple static website

Demo: Let’s estimate how much it will cost to deploy a Simple Static Website

Demo


Amazon ec2 pricing fundamentals

Amazon EC2 Pricing Fundamentals

  • Compute (Instances)

    • Clock hours of server time

    • Machine configuration (instance type)

    • Purchase type (On-Demand, Reserved, Spot)

    • Operating systems and software packages

  • Block Storage

    • Additional storage, backups, data transfer

  • Load balancing

    • Data Processing

  • Detailed Monitoring

  • Elastic IP addresses

  • Data Transfer

    • Regional Data Transfer

    • Data Transfer out


Let s estimate how much it will cost to deploy a dynamic w ebsite

Let’s estimate how much it will cost to deploy a dynamic website

Demo


How aws pricing works

www.MyWebSite.com

(dynamic data)

Amazon Route 53

(DNS)

media.MyWebSite.com

(static data)

Elastic Load

Balancer

Availability Zone #1

AutoScaling group : Web Tier

Availability Zone #2

Amazon

CloudFront

Amazon EC2

AutoScaling group : App Tier

Amazon RDS

Amazon S3

Amazon

RDS


Different purchase options

  • For Spiky Workloads

  • For Steady State Workloads

  • For Time-insensitive workloads

Different Purchase Options

  • For Regulatory and Compliant Workloads


How aws pricing works

Pay even less when you reserve


Reserved instances example

Reserved Instances Example

  • Six servers/instances:

    • 2 small Linux for app and web servers

    • 2 large Linux for database servers


Cost comparison on demand vs reserved

Cost Comparison (On-Demand vs. Reserved)


Pay less when you use more

Pay less when you use more


How aws pricing works

This is how your AWS monthly bill looks like


How aws pricing works

Elasticityis one of the fundamental properties of the cloud that drives many of its economic benefits


Elasticity auto scaling

Elasticity + Auto Scaling

Infrastructure

Cost $

Large

Capital

Expenditure

You just lost

customers

Predicted

Demand

Opportunity

Cost

Wastage

Traditional

Hardware

Actual

Demand

Cloud

Automated

Elasticity

time


How aws pricing works

When you turn off your cloud resources, you actually stop paying for them


How aws pricing works

Continuous optimization in your architecture results in recurring savingsas early as your next month’s bill


Optimize by time of the day

Optimize by time of the day

25% Savings


How aws pricing works

www.MyWebSite.com

(dynamic data)

Amazon Route 53

(DNS)

media.MyWebSite.com

(static data)

Elastic Load

Balancer

Availability Zone #1

AutoScaling group : Web Tier

Availability Zone #2

Amazon

CloudFront

Amazon EC2

AutoScaling group : App Tier

Amazon RDS

Amazon S3

Amazon

RDS


Optimize by seasonal cycles

Optimize by seasonal cycles

50% Savings


Optimize during the month

Optimize during the month

75% Savings


How aws pricing works

#1

Pay as You Go, Pay less when you use more,

#2

Pay even less when you reserve

#3

Elasticity is the fundamental property of the cloud

#4

Get Started Today with AWS Free Usage Tier


How aws pricing works

Thank you!

Jinesh Varia

[email protected] Twitter:@jinman


How aws pricing works

http://aws.amazon.com


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