Understand concepts of cloud economics

AWS Concepts

Amar Suchak

Software Engineer, Microsoft

What is cloud economics?

  • Refers to the financial considerations of moving to the cloud
  • Opportunities to significantly reduce IT expenses compared to traditional IT setups
    • Flexible pricing models
    • Efficient resource usage
    • Elimination of fixed costs

Image of cloud icon with dollar signs inside

AWS Concepts

Fixed vs variable costs

FixedPadlock with money sign

  • Hardware
  • Data centers
  • Maintenance

Paying for full capacity whether it's used or not

Also incur ongoing costs

Variable Wallet with money, including up and down arrows

  • Pay for what you use

Scale costs with demand

AWS Concepts

Bring Your Own Licenses (BYOL)

  • Avoid sunk costs
  • Port existing licenses to AWS infrastructure
  • Cost-effective by leveraging current investment
  • Alternative: AWS includes licenses bundled into service

 

 

Image depicting bring your own software license

AWS Concepts

Right-sizing

A box scaling up

  • Adjust resources to meet actual demand
  • Flexibility: significant cost savings and dynamic environment
1 Scale up icons created by Freepik (Flaticon)
AWS Concepts

Automation

Cogs turning

  • Automate the setup/management of resources
  • Reduces time, minimizes human error and ensures consistent configuration
AWS Concepts

Managed services

Box with different services popping out

  • Amazon RDS for databases
  • Amazon Lambda for serverless computing
  • Amazon S3 for storage
AWS Concepts

Let's practice!

AWS Concepts

Preparing Video For Download...