AWS Pricing - A Guide to Understand How AWS Pricing Works

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Lets think this the other way around. When would you pick one service over the other? I can think of a couple of reasons, likeCustomer FriendlinessNot too heavy on the pocketIf I can see how everything works without paying first.There could be a lot more, but Im 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.If you are interested to know more about this technology, you can enroll in AWS Certification Course where our Training expert is discussing each every nit ty-gritty of the technology.How successful is it? Well, it is estimated that AWS has around 10 times the capacity than its top 14 closest rivals combined!Woah! Thats some number, aint it? Now why do you think it is so successful? Lets see if they have covered our bucket list.Customer FriendlinessAmazon 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 pocketAWS Pricing offers the most amazing options, you can rent a server for as low as 5$ a month!Demofirst, pay laterAWS 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, lets see how.Pay as you GoAWS offers, pay as you go model, that is you only pay what you use.Lets take an example to un derstand 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 moreConfusing? But its true. AWS bills you for the hour. The more AWS resources you use, the less the hourly rates become.Source: AWS PricingSave when you reserveThough 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 ModelsHaving said that, there are 3 different pay models when you use Reserved Instances:No Upfront Partial Upf rontFull UpfrontLets discuss each one of these:No UpfrontIn No upfront, you dont pay anything before you reserve the instance, but since there is no advance payment, the costs are higher than the other two options.Partial UpfrontIn 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 UpfrontIn 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 savingsAWS offers two types of calculators for you to foresee what will be your expenses:AWS CalculatorTCO CalculatorAWS CalculatorAWS 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 CalculatorTCO(Total Cost of Ownership) Calculator is used to compare one services price to another, or one infrastructure solution to the other, it matches your current infrastructure to the most cost efficient AWS offerings.AWS Free TierLets 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 serviceIntroductoryNon-ExpiringThe 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 EC2It 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 S3It offers 5GB of standard storage on S320,000 Get requests2,000 Put r equestsAmazon RDS750 hours of free db.t2.micro instance20 GB of DB storage: any combination of SSD or Magnetic20GB of backups with RDS Magnetic storage10,000,000 IOsAmazon CloudFront50GB Data Transfer Out, 2,000,000 HTTP and HTTPS requests of CloudFront.Data Transfer15GB 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 Lambda1,000,000 free requests per month3.2 million seconds of computing time per monthAWS KMS20,000 free requests per month Amazon SES62,000 outbound messages per month to any recipient when you call Amazon SES.1000 inbound messages per month.Amazon CloudWatch10 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.DynamoDB25GB of storage25 Units of read capacity and 25 units write capacitySince pricing changes for AWS resources pretty often, you can get th e updated pricing for all AWS resources or services fromthe Pricing page of AWS.So thats 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. Heres 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. Wehave 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.Got a question for us? Please mention it in the comments section of this AWS Pricingblogand we will get back to you.Recommended videos for you AWS Tutorial A Complete Tutorial On Amazon Web Services Watch Now AWS Certifications All You Need To Know Watch Now Architecting in Cloud-III Watch Now Building Scalable Application on Cloud Watch Now What Is AWS Getting Started With AWS Watch Now Cloud Computing with AWS II Watch Now AWS vs Google Cloud Cloud Platform Compared Watch Now Efficient Disaster Recovery with Cloud Computing Watch Now Microsoft Azure Tutorial Step-By-Step Tutorial In Azure Watch Now AWS Vs Azure Cloud Platform Comparison Watch Now What Is Cloud Computing? A Beginners Guide To Understanding Cloud Watch Now Architecting in Cloud-II Watch Now Power The Hadoop Cluster With AWS Cloud Watch NowRecommended blogs for you Cloud Engineer Salary: All You Need To Know Read Article What is AWS CLI and how to use it? Read Article AWS vs Azure: What Is The Difference? 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