module2-s1

Page 1: Fundamentals of Pricing

  • Introduction to Pricing

    • Introduces the AWS pricing model

  • Three Fundamental Drivers of Cost

    • Compute: Charged per hour/second

    • Storage: Charged typically per GB

    • Data Transfer:

      • Outbound data transfer is aggregated and charged

      • Inbound data transfer has no charge (with exceptions)

  • Important Considerations

    • Charges can vary depending on instance type and service used.

    • Verify data transfer rates before using AWS services.

    • Outbound data transfer rate appears as "AWS Data Transfer Out" on monthly statements.

Page 2: Payment Philosophy

  • Pay For What You Use

    • Philosophy underlying AWS pricing; pay only for what you utilize.

    • No long-term contracts; flexibility to start or stop using services at any time.

  • Pricing Model

    • Pay less when you reserve services.

    • Pay less when usage increases.

    • Savings as AWS grows.

  • Service Overview

    • AWS offers a range of services; you pay for specific resources needed.

Page 3: No Large Upfront Expenses

  • Cost Benefits

    • Pay for consumed services only; eliminate large upfront expenses associated with building data centers.

    • Lower variable costs and focus on innovation.

  • Operational Flexibility

    • All AWS services available on demand.

    • No complex licensing dependencies; easy adaptability to business changes.

Page 4: Reserved Instances Benefits

  • Pay Less When You Reserve

    • Invest in Reserved Instances (RIs) to save up to 75%.

    • Options include:

      • All Upfront Reserved Instance (AURI): Largest discount.

      • Partial Upfront Reserved Instance (PURI): Lower discount, less upfront payment.

      • No Upfront Payments Reserved Instance (NURI): Smallest discount.

    • Helps in budgeting, minimizing risks and managing costs predictably.

Page 5: Volume-Based Discounts

  • Pay Less by Using More

    • Benefit from tiered pricing.

    • Services like Amazon S3 and EBS lower costs per GB as usage increases.

  • Storage Services

    • Multiple services offer cost efficiency based on your needs.

    • Optimize savings with the right combination of storage solutions.

Page 6: Cost Reduction As AWS Grows

  • Lower Business Costs

    • AWS continuously reduces costs for customers via operational efficiencies and economies of scale.

    • AWS has lowered pricing 75 times since 2006.

    • Future resources are upgraded at no extra charge.

  • Custom Pricing

    • Available for high-volume projects with unique requirements.

Page 7: AWS Free Tier Introduction

  • AWS Free Tier

    • Helps new customers gain free experience with AWS platform.

    • Free for 1 year on certain services like Amazon EC2, S3, EBS, etc.

    • Encouragement for new users to start building with AWS.

Page 8: Services with No Charge

  • Free AWS Services

    • Amazon VPC, Elastic Beanstalk, Auto Scaling, CloudFormation, IAM offered with no additional charges.

    • Note: Other services utilized with these may incur charges.

  • Consolidated Billing

    • Combines payments for multiple AWS accounts/bills.

    • Track charges easily and benefit from volume pricing discounts.

Page 9: Additional Charges

  • Clarifications

    • No charges for service use, but charges may apply for used resources (like EC2 Instances).

    • Differences explained between AWS and AISPL accounts regarding jurisdiction and billing.

Page 10: Key Takeaways

  • Cost Structure

    • No charge for inbound data transfer or transfers within the same AWS Region (exceptions apply).

    • Pay only for what you use; flexibility without long-term contracts.

    • Several services are free, though other resources they provision may incur charges.

  • Pricing Strategy

    • Review AWS services pricing for estimating costs.

    • Utilize tiered pricing to optimize budget and service requirements.