Module 8: Pricing and Support

Module 8 – Pricing and Support Contents

  • Learning objectives
        - Describe AWS pricing and support models.
        - Describe the AWS Free Tier.
        - Describe key benefits of AWS Organizations and consolidated billing.
        - Explain the benefits of AWS Budgets.
        - Explain the benefits of AWS Cost Explorer.
        - Explain the primary benefits of the AWS Pricing Calculator.
        - Distinguish between the various AWS Support Plans.
        - Describe the benefits of AWS Marketplace.

AWS Free Tier

  • Definition: The AWS Free Tier allows users to start using certain AWS services without incurring costs for a specified period.

  • Types of Offers:
        - Always Free: These offers do not expire and are available to all AWS customers.
            - Example: AWS Lambda allows 1 million free requests and 3.2 million seconds of compute time per month.
            - Example: Amazon DynamoDB provides 25 GB of free storage per month.
        - 12 Months Free: Free for 12 months post-initial sign-up to AWS.
            - Includes specific amounts of Amazon S3 Standard Storage, EC2 compute time, and CloudFront data transfer limits.
        - Trials: Short-term offers starting from the activation date of a service.
            - Example: Amazon Inspector has a 90-day free trial.
            - Example: Amazon Lightsail offers 750 free hours over a 30-day period.

  • Notable Free Tier Services: AWS Lambda, S3, SageMaker, Comprehend Medical, DynamoDB, SNS, Cognito, etc.

How AWS Pricing Works (AWS Pricing Concepts)

  • Pay-as-You-Go Model: Charges are based on actual resource usage without long-term contracts.

  • Reservation Discounts: Users pay less by reserving capacity, potentially saving up to 72% with Amazon EC2 Instance Savings Plans.
        - Explanation: Ideal for workloads needing continuous operation, optimizing costs versus On-Demand pricing.

  • Volume-Based Discounts: Some services, like Amazon S3, have tiered pricing where costs decrease with increased usage.

AWS Pricing Calculator

  • Function: The AWS Pricing Calculator helps users estimate costs based on their use cases by allowing organization of estimates into custom-defined groups.
        - Example Scenario: Entering details like OS type, memory, and I/O requirements for accurate EC2 instance cost comparisons across regions.

AWS Pricing Examples

  • AWS Lambda Charges:
        - Structure: Based on the number of requests and runtime duration.
        - Free Usage: First 1 million requests and 3.2 million seconds of execution free.
        - Compute Savings Plan can be utilized for lower costs based on commitment levels.

  • Amazon EC2 Charges:
        - Cost Model: Users pay based on compute time while instances are running.
        - Cost-Saving Options: Using Spot Instances can provide cost savings up to 90% for interruptible workloads.
        - Usage Transparency: Billing shows itemized costs including instance types, EBS storage, and Elastic Load Balancing time.

  • Amazon S3 Charges: Components include:
        - Storage: Charges based on the size and storage class of objects.
        - Requests: Costs for requests made to access objects in S3 buckets.
        - Data Transfer: Fees for data transferred in/out of S3, with certain exemptions (e.g., transfers within the same region).

Billing Dashboard

  • Overview: Used for monitoring usage, paying bills, and cost analysis.

  • Features:
        - Compare current month’s spending with previous months.
        - View spend by service and track Free Tier usage.
        - Access Cost Explorer and manage Savings Plans.
        - View published AWS Cost and Usage Reports.

Consolidated Billing

  • Overview: Part of AWS Organizations, allowing you to manage multiple AWS accounts conveniently.

  • Benefits:
        - Single bill for all accounts, facilitating cost tracking.
        - Ability to share discount pricing, Savings Plans, and Reserved Instances across accounts.

  • Limitations and Contact: Default maximum of 4 accounts; contact AWS Support for increases.

  • Cost Efficiency: Helps optimize billing through shared usage, potentially benefiting accounts that do not individually meet discount thresholds.

AWS Budgets

  • Functionality: Allows users to set budgets to control service usage and costs, refreshing three times daily for accuracy.
        - Alerts can be configured to notify when usage exceeds budgeted amounts.

  • Example Scenario: Setting a $200 budget for Amazon EC2 usage, with alerts for reaching $100 of usage.

AWS Cost Explorer

  • Definition: A visualization tool for understanding AWS costs and usage patterns over time.

  • Key Features:
        - Default report for top five cost-incurring AWS services with filtering options.
        - Ability to analyze spending at hourly levels, tracking historical data up to 12 months.

  • Example Usage: Monthly costs for Amazon EC2 instances mapped over six months, differentiated by instance type.
        - Tags can be used to filter costs associated with specific projects, enabling detailed tracking.

AWS Support

  • Support Plans Overview: Four plans offered: Basic, Developer, Business, and Enterprise, catering to different needs based on support requirements.

  • Basic Support: Free, providing documentation, community support, billing questions, and limited Trusted Advisor checks.

  • Developer Support: Best practice guidance, client-side diagnostics, and 24-hour email support.
        - Example Use: Assisting customers in combining AWS features for application development.

  • Business Support: Includes use-case guidance, all Trusted Advisor checks, direct phone access, and infrastructure event management options.

  • Enterprise Support: Provides application architecture guidance, 15-minute SLA for critical workloads, and a Technical Account Manager (TAM).
        - The TAM features ongoing communication and architectural guidance based on business needs.

AWS Marketplace

  • Definition: An extensive digital catalog of third-party software available for deployment on AWS.

  • Benefits:
        - Rapid procurement and deployment of software solutions with on-demand pricing models.
        - Availability of reviews and detailed product information.

  • Categories:
        - Includes Infrastructure Products, Business Applications, Data Products, DevOps, among others, with the ability to filter by subcategories.

Summary

  • Covered topics into AWS pricing and support including AWS pay-as-you-go model, free tier, consolidation and budgeting tools, and support programs to assist with customer needs.

Quiz

  • Actions with Consolidated Billing: Combine usage across accounts for volume pricing discounts.

  • Pricing Tool for Cost Management: AWS Cost Explorer.

  • Tool for Usage Notifications: AWS Budgets.

  • Support for TAM: Enterprise Support plan.

  • Resource for Third-Party Software: AWS Marketplace.

Additional Resources

  • AWS Pricing documentation

  • AWS Free Tier details

  • AWS Cost Management resources

  • Whitepapers on AWS Pricing and Economics

  • AWS Support details

  • AWS Knowledge Centre resources

Compiled by Kenneth Leung – December 2020