AWS Pricing – An Introduction to AWS Pricing

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Dec 19, 2016
AWS Pricing – An Introduction to AWS Pricing
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AWS Pricing

Today, in this AWS Pricing blog, we will be discussing less of what AWS is, and more about how it emerged as a winner and leader in the Cloud Computing industry. 

Have you ever wondered why a particular service is more successful than the others? Let’s think this the other way around. When would you pick one service over the other?

I can think of a couple of reasons, like

  • Customer Friendliness
  • Not too heavy on the pocket
  • If I can see how everything works without paying first.

There could be a lot more, but I’m sure these would be the foremost.

Having said that, can you guess which service is the most successful among the Cloud Providers?

It is, Amazon Web Services.   

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How successful is it? Well, it is estimated that AWS has around 10 times the capacity than its top 14 closest rivals combined!

Woah! That’s some number, ain’t it? Now why do you think it is so successful? Let’s see if they have covered our bucket list.

  • Customer FriendlinessCustomer-Friendly - AWS Pricing - Edureka

Amazon claims that it is the most customer obsessed company in the world, and if you have ever shopped on Amazon, you would know that too.

 

  • Not heavy on the pocket

High-Cost - AWS Pricing - Edureka

AWS Pricing offers the most amazing options, you can rent a server for as low as 5$ a month!

 

 

 

 

  • Demo first, pay laterBuy-Now-Pay-Later - AWS Pricing - Edureka

AWS has been very generous in this, it offers this incredible free tier option, and to call it a demo would be an insult, why? Be patient, we have covered everything.

 

So why is it so successful is pretty clear, AWS leaves no stone unturned to keep their customers happy, and this is reflected in AWS pricing, let’s see how.

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Pay as you GoPay-Go - AWS Pricing - Edureka

AWS offers, pay as you go model, that is you only pay what you use.

 

Let’s take an example to understand this:

Suppose you are using say 10GB of space on AWS infrastructure, now usually what happens is, you estimate your usage say 40GB, reserve it, and pay for that 40GB monthly. But what if you are not using the whole 40GB. Like in our example, you just have 10GB of data, so if you are using AWS, you just pay for that 10GB, and you can always store more as your requirements grow, there is no restriction!

Pay less by using more

Pay-Less - AWS Pricing - Edureka

Confusing? But it’s true. AWS bills you for the hour. The more AWS resources you use, the less the hourly rates become.

 

 

 

Pay-Less-Use-More - AWS Pricing - Edureka

Source: AWS Pricing

Save when you reserve

Save-Reserve - AWS Pricing - Edureka

Though AWS has on-demand instances, but in services like AWS EC2 and RDS you have an option of reserving your instances as well, for a specific time frame. Why would you reserve? You can reduce your costs up to 75 percent when you use reserved instances compared to On Demand instances.

Pricing Models

Save-When - AWS Pricing - Edureka

Having said that, there are 3 different pay models when you use Reserved Instances:

  • No Upfront
  • Partial Upfront
  • Full Upfront

 

Let’s discuss each one of these:

No Upfront

  • In No upfront, you don’t pay anything before you reserve the instance, but since there is no advance payment, the costs are higher than the other two options.

Partial Upfront

  • In Partial Upfront, you pay a partial amount when you are reserving the instance, the costs in this model are lesser as compared to No upfront, but is still more expensive than full upfront.

Full Upfront

  • In Full Upfront, you pay the whole amount when you are reserving the instance, and the pricing is least in this case, since you are paying the full payment.

Calculate your savings

Calculator - AWS Pricing - Edureka

AWS offers two types of calculators for you to foresee what will be your expenses:

  • AWS Calculator
  • TCO Calculator

 

AWS Calculator

AWS Calculator is used to calculate your monthly expenses, it can be used to foresee, what will be your expenditure if you use a certain set of resources, it also provides you with templates to appraise complete solutions.

TCO Calculator

TCO(Total Cost of Ownership) Calculator is used to compare one service’s price to another, or one infrastructure solution to the other, it matches your current infrastructure to the most cost efficient AWS offerings.

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AWS Free TierFree-Tier-Logo - AWS Pricing - Edureka

Let’s talk about the most exciting part of AWS pricing first, that is the AWS Free tier. They are offered by AWS to their customers so that they can get a hands-on on AWS services, so that they would know what they will be paying for.

The free tier from AWS offer two kinds of free service

  • Introductory
  • Non-Expiring

The Introductory free tier is given to all AWS customers on their SignUp, and it is valid for 12 months from the day they register on AWS.

The following are the services and their features that are included in the free tier:

  • Amazon EC2EC2 Logo - AWS Pricing - Edureka
    • It offers 750 hours of free Windows or Linux t2.micro instance usage per month.
    • So you can either run 1 instance  for 750 hours for one month or two instances for half a month.

 

  • Amazon S3S3 - AWS Pricing - Edureka
    • It offers 5GB of standard storage on S3
    • 20,000 Get requests
    • 2,000 Put requests

 

  • Amazon RDSRDS - AWS Pricing - Edureka
    • 750 hours of free db.t2.micro instance
    • 20 GB of DB storage: any combination of SSD or Magnetic
    • 20GB of backups with RDS Magnetic storage
    • 10,000,000 IOs

 

  • Amazon CloudFrontCloudFront - AWS Pricing - Edureka
    • 50GB Data Transfer Out,
    • 2,000,000 HTTP and HTTPS requests of CloudFront.

 

  • Data Transfer
    • 15GB of data transfer out aggregated out of all AWS services.

 

The non-expiring free tier does not expire even after 12 months, and includes the following services:

  • AWS LambdaLambda - AWS Pricing - Edureka
    • 1,000,000 free requests per month
    • 3.2 million seconds of computing time per month

 

  • AWS KMSKMS - AWS Pricing - Edureka
    • 20,000 free requests per month

 

  • Amazon SESSES - AWS Pricing - Edureka
    • 62,000 outbound messages per month to any recipient when you call Amazon SES.
    • 1000 inbound messages per month.

 

  • Amazon CloudWatchCloudWatch - AWS Pricing - Edureka
    • 10 Amazon CloudWatch custom metrics, 1,000,000 API requests.
    • 5GB of log data ingestion.
    • 5GB of log data Archive.
    • 3 Dashboards with up to 50 metrics each per month.

 

  • DynamoDBDynamoDb - AWS Pricing - Edureka
    • 25GB of storage
    • 25 Units of read capacity and 25 units write capacity

 

Since pricing changes for AWS resources pretty often, you can get the updated pricing for all AWS resources or services from the Pricing page of AWS.

So that’s it guys! I hope you enjoyed this AWS Pricing blog. The knowledge of how AWS pricing works is a must for any AWS Solution Architect Professional. Here’s a collection of AWS Architect interview questions to help you prepare for your next AWS job interview. To learn more about AWS you can refer our Amazon AWS Tutorial blog. We have also come up with a curriculum which covers exactly what you would need to crack the Solution Architect Exam! You can have a look at the course details for AWS Solution Architect training.

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Got a question for us? Please mention it in the comments section of this AWS Pricing blog and we will get back to you.

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