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How AWS Pricing Works

How AWS Pricing Works. Jinesh Varia jvaria@amazon.com 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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  1. How AWS Pricing Works Jinesh Varia jvaria@amazon.com Technology Evangelist

  2. 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

  3. 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

  4. 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.

  5. 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.

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

  7. 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

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

  9. 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

  10. For Spiky Workloads • For Steady State Workloads • For Time-insensitive workloads Different Purchase Options • For Regulatory and Compliant Workloads

  11. Pay even less when you reserve

  12. Reserved Instances Example • Six servers/instances: • 2 small Linux for app and web servers • 2 large Linux for database servers

  13. Cost Comparison (On-Demand vs. Reserved)

  14. Pay less when you use more

  15. This is how your AWS monthly bill looks like

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

  17. 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

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

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

  20. Optimize by time of the day 25% Savings

  21. 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

  22. Optimize by seasonal cycles 50% Savings

  23. Optimize during the month 75% Savings

  24. #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

  25. Thank you! Jinesh Varia jvaria@amazon.com Twitter:@jinman

  26. http://aws.amazon.com

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