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What are the pricing concepts in AWS?

What are the pricing concepts in AWS?

AWS had 1000+ services and AWS only bills for services you consume. Every AWS Region has slight differences in pricing.

With AWS, you can get volume-based discounts and realize important savings as your usage increases. For services such as S3 and data transfer OUT from EC2, pricing is tiered, meaning the more you use, the less you pay per GB. For Amazon S3, you can use this calculator to estimate your monthly bill.

For certain services like Amazon EC2 and Amazon RDS, you can invest in reserved capacity. With Reserved Instances, you can save up to 75% over equivalent on-demand capacity. Reserved Instances are available in 3 options – All up-front (AURI), partial up-front (PURI) or no upfront payments (NURI).

When you buy Reserved Instances, the larger the upfront payment, the greater the discount. To maximize your savings, you can pay all up-front and receive the largest discount. Partial up-front RI’s offer lower discounts but give you the option to spend less up front. Lastly, you can choose to spend nothing up front and receive a smaller discount but allowing you to free up capital to spend in other projects.

By using reserved capacity, your organization can minimize risks, more predictably manage budgets, and comply with policies that require longer-term commitments.

Recently AWS has announced Per-Second Billing for EC2 and EBS. Linux instances that are launched in On-Demand, Reserved, and Spot form will be billed in one-second increments. Similarly, provisioned storage for EBS volumes will be billed in one-second increments.

Per-second billing also applies to several other AWS services like Amazon EMR, AWS Batch, Elastic GPU’s and Provisioned IOPS.

  • AWS has 1-year Free Tier Offer for New User. Check out here
  • AWS services which Always Free for all customers. Check out here
  • All other AWS Services Pricing. Check out here
  • AWS Simple Monthly Calculator. Click here

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