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How AWS Pricing Works - Jinesh Varia

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While the number and types of services offered by AWS has increased dramatically, our philosophy on pricing has not
changed: at the end of each month, you pay only for what you use, and you can start or stop using a product at any
time. No long-term contracts are required.
Pricing information for each service on our website is available at http://aws.amazon.com/pricing/. Our strategy of
pricing each service independently gives you tremendous flexibility to choose the services you need for each project and
to pay only for what you use.
This webinar will help you understand how to effectively estimate the costs of running your specific project on AWS.
We provide several examples that leverage the AWS Simple Monthly Calculator. For each example, this paper discusses
its architecture, example usage of each service, cost breakdown for each service, and the total estimated monthly
charge.

Whitepaper: http://media.amazonwebservices.com/AWS_Pricing_Overview.pdf

Published in: Technology, Travel

How AWS Pricing Works - Jinesh Varia

  1. 1. How AWS Pricing Works Jinesh Varia jvaria@amazon.com Technology Evangelist
  2. 2. AWS Pricing PhilosophyPay as you go• No minimum commitments or long-term contracts required• Capex -> Opex• Turn off when you don’t need itPay less per unit when you use more• Tiered Pricing and Volume DiscountsPay even less when you reserve• Reserved pricingPay even less as AWS grows• Efficiencies, optimizations and economies of scale result in passing the savings back to you in the form of lower pricingCustom Pricing
  3. 3. Did you know?AWS Free Usage Tier Free Services Data Transfer New Customers Amazon EC2 (Linux & Windows) Amazon ELB AWS Elastic Beanstalk No Charge for Inbound Amazon S3 AWS CloudFormation Data Transfer Amazon EBS AWS IAM Auto Scaling No Charge for Data For all customers Consolidated Billing Transfer Between Services within a region Amazon SQS/SNS Amazon DynamoDB Amazon SES Amazon SWF And more…
  4. 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 efficiencyimprovements allow us to continually lower prices.
  5. 5. Amazon S3 Amazon CloudFront Storage Class Traffic Distribution • Standard Storage vs. Reduced • Data transfer and request pricing Redundancy Storage (RRS) vary across geographic regions Storage • Pricing is based on the edge • Number and size of objects stored in location where content is served your Amazon S3 buckets Requests Requests • The number and type of requests • Number and type of requests (GET vs (HTTP or HTTPS) made PUT/COPY) • Geographic region in which the Data transfer requests are made. • Amount of data transferred out of Data Transfer Out the Amazon S3 region. • Amount of data transferred out of your Amazon CloudFront edge locations.
  6. 6. Demo: Let’s estimate how much it willcost to deploy a Simple Static Website Demo
  7. 7. Amazon EC2 Pricing FundamentalsCompute (Instances) Block Storage• Clock hours of server time • Additional storage,• Machine configuration backups, data transfer (instance type) Load balancing• Purchase type (On- • Data Processing Demand, Reserved, Spot) Detailed Monitoring• Operating systems and software packages Elastic IP addresses Data Transfer • Regional Data Transfer • Data Transfer out
  8. 8. Let’s estimate how much it will cost to deploy a dynamic website Demo
  9. 9. www.MyWebSite.com (dynamic data) Amazon Route 53 media.MyWebSite.com (DNS) (static data) Elastic Load Balancer Amazon Auto Scaling group : Web Tier CloudFront Amazon EC2 Auto Scaling group : App Tier Amazon RDS Amazon S3 AmazonAvailability Zone #1 RDS Availability Zone #2
  10. 10. Different Purchase Options For Steady For Time- For RegulatoryFor Spiky State insensitive and CompliantWorkloads Workloads workloads Workloads
  11. 11. Pay even less when you reserveReserved Instance Savings over On-demand Instances (up to)Offering TypesLight Utilization 42% 1-year 56% 3-yearReserved InstancesMedium Utilization 49% 1 -year 66% 3-yearReserved InstancesHeavy Utilization 54% 1-year 71% 3-yearReserved Instances
  12. 12. Reserved Instances Example Six servers/instances: • 2 small Linux for app and web servers • 2 large Linux for database serversDescription Option 1 Option 2 Option 3 Option 4App Servers 2 On-Demand 2 On-Demand 1 On-Demand 1 On-Demand 1 Reserved Medium 1 Reserved LightWeb Servers 2 On-Demand 2 On-Demand 1 On-Demand 1 On-Demand 1 Reserved Medium 1 Reserved LightDatabase 2 On-Demand 2 Reserved 2 Reserved Medium 2 ReservedServers Medium Heavy
  13. 13. Cost Comparison (On-Demand vs. Reserved) Option 1 Option 2 Option 3 Option 4Monthly Cost $746.64 $424.56 $344.04 $314.76One-Time 1-year - $1820.00 $2275.00 $2405.00Cost 3-year - $2800.00 $3500.00 $3700.00Total Cost 1-year $8959.68 $6914.72 $6403.48 $6182.12 3-year $26879.04 $18084.16 $15885.44 $15031.36Savings (over 1-year - 23% 29% 31%Option 1) 3-year - 33% 41% 44%
  14. 14. Pay less when you use more
  15. 15. Amazon DynamoDB Pricing FundamentalsProvisioned Throughput Indexed Storageper table • Table, Items, attributes • Number of reads/sec Data Transfer • Number of writes/sec • Data Transfer out • Item size • Read Consistency (eventual/strict)
  16. 16. Let’s estimate how much it will costto store data in Amazon DynamoDB Demo
  17. 17. This is how your AWS monthly bill looks like
  18. 18. Elasticity is one of the fundamentalproperties of the cloud that drives many of its economic benefits
  19. 19. Elasticity + Auto ScalingInfrastructureCost $ Large You just lost Capital customers Expenditure Predicted Demand Traditional Hardware Actual Demand Cloud Automated Elasticity time
  20. 20. When you turn off your cloud resources, you actually stop paying for them
  21. 21. Continuous optimization in your architecture results in recurring savingsas early as your next month’s bill
  22. 22. Optimize by time of the day 25% Savings
  23. 23. www.MyWebSite.com (dynamic data) Amazon Route 53 media.MyWebSite.com (DNS) (static data) Elastic Load Balancer Amazon Auto Scaling group : Web Tier CloudFront Amazon EC2 Auto Scaling group : App Tier Amazon RDS Amazon S3 AmazonAvailability Zone #1 RDS Availability Zone #2
  24. 24. Optimize by seasonal cycles 50% Savings
  25. 25. Optimize during the month 75% Savings
  26. 26. #1Pay as You Go, Pay less when you use more,#2Pay even less when you reserve#3Elasticity is the fundamental property of the cloud#4Get Started Today with AWS Free Usage Tier
  27. 27. Thank you! Jinesh Variajvaria@amazon.com Twitter:@jinman
  28. 28. http://aws.amazon.com

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