AWS Pricing Models

AWS Security and Cost Management Concepts

Dev Bhosale

Principal Data & Cloud Architect

Pricing models

Feature Pay-as-you-go Save when you commit Pay less by using more
Flexibility Very high Low Medium
Cost Savings No upfront savings High savings Volume-based savings
Budget Predictability Low High Medium

 

AWS pricing models compared to phone plans

AWS Security and Cost Management Concepts

Pay-as-you-go

  • Pay-as-you-go approach for the vast majority of our cloud services
  • You pay only for the individual services you need, for as long as you use them

Turning on an EC2 instance compared to letting water from a faucet run

AWS Security and Cost Management Concepts

Save when you commit

  • Savings for a 1-year or 3-year commitment
  • Increased savings with higher commitment
  • Additional savings for upfront payment vs. monthly payments
EC2 Commitment Monthly cost Discount
None (pay-as-you-go) $734.67 0%
1-year commitment $487.07 33.07%
3-year commitment $332.15 54.78%
AWS Security and Cost Management Concepts

Pay less by using more

  • Volume discounts decrease cost per GB with more use
  • Economies of scale apply
  • Similar to wholesale vs retail pricing

Volume discount: higher quantities offer lower prices

AWS Security and Cost Management Concepts

Bandwidth costs

AWS data transfer costs. Outbound internet traffic is most costly, followed by transfer between two regions, followed by transfer within a single region

AWS Security and Cost Management Concepts

Pricing calculator

Pricing Calculator Demo

AWS Security and Cost Management Concepts

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AWS Security and Cost Management Concepts

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