Billing and Pricing Flashcards
12% of Exam
Which pricing model should you use for EC2 instances that will be used in a lab environment for several hours on a weekend and must run uninterrupted?
- On-Demand
- Reserved
- Spot
- Dedicated Instance
- On-Demand
- On-Demand is the best choice for this situation as it is the most economical option that will ensure no interruptions
- Spot instances are good for short term requirements as they can be very economical. However, you may find that the instance is terminated if the spot market price moves
- Reserved instances are good for long-term, static requirements as you must lock-in for 1 or 3 years in return for a decent discount
What types of pricing policies does AWS offer? (choose 2)
- Pay-as-you-go
- Enterprise license agreement (ELA)
- Non-peak hour discounts
- Global usage discounts
- Save when you reserve
- Pay-as-you-go
- Save when you reserve
- Amazon pricing includes options for pay-as-you-go, save when you reserve and pay less by using more
- Amazon does not offer ELAs, non-peak hour discounts, or global usage discounts
Which tool enables you to visualize your usage patterns over time and to identify your underlying cost drivers?
- AWS Simple Monthly Calculator
- Total Cost of Ownership (TCO) Calculator
- AWS Cost Explorer
- AWS Budgets
- AWS Cost Explorer
• The AWS Cost Explorer is a free tool that allows you to view charts of your costs. You can view cost data for the past 13 months and forecast how much you are likely to spend over the next three months. Cost Explorer can be used to discover patterns in how much you spend on AWS resources over time and to identify cost problem area
For which services does Amazon not charge customers? (choose 2)
- Amazon VPC
- Amazon EBS
- Amazon CloudFormation
- Amazon S3
- Amazon SNS
- Amazon VPC
- Amazon CloudFormation
• Amazon VPC and CloudFormation are free of charge, however in the case of CloudFormation you pay for the resources it creates
What is the most cost-effective support plan that should be selected to provide at least a 1-hour response time for a production system failure?
- Basic
- Developer
- Business
- Enterprise
- Business
- Basic does not provide any technical support
- Developer provides business hours access via email
- Business provides < 1 hour response times for a production system failure
- Enterprise provides < 1 hour response times for a production system failure and < 15 minutes for a business-critical system
How can an organization compare the cost of running applications in an on-premise or colocation environment against the AWS cloud?
- AWS Budgets
- AWS Simple Monthly Calculator
- TCO Calculator
- AWS Cost Explorer
- TCO Calculator
• The TCO calculator is a free tool provided by AWS that allows you to estimate the cost savings of using the AWS Cloud vs. using an on-premised data center
What is the most cost-effective EC2 pricing option to use for a non-critical overnight workload?
- On-Demand
- Spot
- Reserved Instance
- Dedicated Host
- Spot
• Spot instances are good for short term requirements as they can be very economical. Sometimes AWS may terminate your instance, e.g. when the market price exceeds your bid price. This is a good option for non-critical workloads that can be terminated
Which AWS support plan should you use if you need a response time of < 15 minutes for a business-critical system failure?
- Basic
- Developer
- Business
- Enterprise
- Enterprise
- Both Business and Enterprise offer < 1 hour response time for the failure of a production system
- Only the Enterprise plan provides a response time of < 15 minutes for the failure of a business-critical system
Which of the following statements is correct in relation to consolidated billing? (choose 2)
- Paying accounts are independent and cannot access resources of other accounts
- Used to consolidate billing across organizations
- One bill is provided per AWS organization
- Volume pricing discounts cannot be applied to resources
- Only available to Enterprise customers
- Paying accounts are independent and cannot access resources of other accounts
- One bill is provided per AWS organization
- AWS organizations allow you to consolidate multiple AWS accounts into an organization that you create and centrally manage
- Note that it allows you to consolidate billing across accounts within an organization not across organizations
- Volume pricing discounts can be applied to resources
- Consolidated billing is available to all customers
A company would like to maximize their potential volume and RI discounts across multiple accounts and also apply service control policies on member accounts. What can they use gain these benefits?
- AWS Budgets
- AWS Cost Explorer
- AWS IAM
- AWS Organizations
- AWS Organizations
• AWS Organizations enables you to create groups of AWS accounts and then centrally manage policies across those accounts. AWS Organizations provides consolidated billing in both feature sets, which allows you set up a single payment method in the organization’s master account and still receive an invoice for individual activity in each member account. Volume pricing discounts can be applied to resources
Which items should be included in a TCO analysis comparing on-premise to AWS Cloud? (choose 2)
- Firewall management
- Application licensing
- Compute hardware
- Data center security
- Operating system patching
- Compute hardware
- Data center security
- You need to identify the items that have a cost on-premise and that will be rolled into the service in the cloud. Compute hardware costs and data center security costs will be rolled in the service cost in the cloud so you need to include them in the model so you can really understand the true TCO on-premise vs. the cloud
- Firewall management, application licensing and operating system patching need to be paid for on-premise and in the cloud so there is little difference
What are two ways an AWS customer can reduce their monthly spend? (choose 2)
- Turn off resources that are not being used
- Use more power efficient instance types
- Reserve capacity where suitable
- Be efficient with usage of Security Groups
- Reduce the amount of data ingress charges
- Turn off resources that are not being used
- Reserve capacity where suitable
• You don’t pay for power, security groups, or data ingress to the AWS cloud so these answers are all incorrect
Which AWS services can be utilized at no cost? (choose 2)
- Identity and Access Management (IAM)
- Amazon VPC
- Amazon S3
- Amazon CloudFront
- Amazon RedShift
- Identity and Access Management (IAM)
2. Amazon VPC
Which of the following are valid types of Reserved Instance? (choose 2)
- Convertible RI
- Discounted RI
- Scheduled RI
- Long-Term RI
- Special RI
- Convertible RI
- Scheduled RI
- Standard RIs: These provide the most significant discount (up to 75% off On-Demand) and are best suited for steady-state usage
- Convertible RIs: These provide a discount (up to 54% off On-Demand) and the capability to change the attributes of the RI as long as the exchange results in the creation of Reserved Instances of equal or greater value. Like Standard RIs, Convertible RIs are best suited for steady-state usage
- Scheduled RIs: These are available to launch within the time windows you reserve. This option allows you to match your capacity reservation to a predictable recurring schedule that only requires a fraction of a day, a week, or a month
An architect needs to compare the cost of deploying an on-premise web server and an EC2 instance on the AWS cloud. Which tool can be used to assist the architect?
- AWS Cost Explorer
- AWS Budgets
- AWS TCO Calculator
- AWS Simple Monthly Calculator
- AWS TCO Calculator
- The TCO calculator is a free tool provided by AWS that allows you to estimate the cost savings of using the AWS Cloud vs. using an on-premised data center
- The AWS Cost Explorer is a free tool that allows you to view charts of your costs
- The AWS Simple Monthly Calculator helps customers and prospects estimate their monthly AWS bill more efficiently
- AWS Budgets gives you the ability to set custom budgets that alert you when your costs or usage exceed
Which Amazon S3 storage tier provider does not include a data retrieval fee and has an availability SLA of 99.99%?
- S3 Standard
- S3 Standard-IA
- S3 One Zone-IA
- Amazon Glacier
- S3 Standard
- All of the storage tiers listed include a data retrieval fee except for S3 Standard
- Availability SLAs are: S3 Standard = 99.99%; S3 Standard-IA = 99.9%; S3 One Zone-IA = 99%; Amazon Glacier = no SLA
A company is planning to migrate some resources into the cloud. What factors need to be considered when determining the cost of the AWS Cloud? (choose 2)
- The number of VPCs created
- The number of servers migrated into EC2
- The number of IAM users created
- The amount of egress data per month
- The amount of ingress data per month
- The number of servers migrated into EC2
- The amount of egress data per month
• AWS charge for EC2 instances and data egress. There are no charges for VPCs, IAM users or data ingress
A manager needs to keep a check on his AWS spend. How can the manager setup alarms that notify him when his bill reaches a certain amount?
- Using CloudWatch
- Using AWS Trusted Advisor
- Using CloudTrail
- By notifying AWS support
- Using CloudWatch
• The best ways to do this is to use CloudWatch to configure alarms that deliver a notification when activated. The alarms can use cost metrics that trigger the alarm when a certain amount of spend has been reached
Which AWS support plans provide support via email, chat and phone? (choose 2)
- Basic
- Developer
- Business
- Enterprise
- Global
- Business
- Enterprise
• Only the business and enterprise plans provide support via email, chat and phone
An application stores images which will be retrieved infrequently, but must be available for retrieval immediately. Which is the most cost-effective storage option that meets these requirements?
- Amazon Glacier with expedited retrievals
- Amazon S3 Standard-Infrequent Access
- Amazon EFS
- Amazon S3 Standard
- Amazon S3 Standard-Infrequent Access
- Amazon S3 Standard-Infrequent Access is the most cost-effective choice
- Amazon Glacier with expedited retrievals is fast (1-5 minutes) but not immediate
- Amazon EFS is a high-performance file system and not ideally suited to this scenario, it is also not the most cost-effective option
- Amazon S3 Standard provides immediate retrieval but is not less cost-effective compared to Standard-Infrequent access
To optimize pricing or ensure capacity is available reservations can be applied to which of the following services? (choose 2)
- Amazon EC2
- AWS Lambda
- Amazon EBS
- Amazon RDS
- Amazon S3
- Amazon EC2
- Amazon RDS
• Reservations apply to various services, including: EC2, DynamoDB, ElastiCache, RDS and RedShift
Which of the options below are recommendations in the cost optimization pillar of the well-architected framework? (choose 2)
- Adopt a consumption model
- Adopt a capital expenditure model
- Start spending money on data center operations
- Analyze and attribute expenditure
- Manage your services independently
- Adopt a consumption model
- Analyze and attribute expenditure
• The cost optimization pillar includes the ability to avoid or eliminate unneeded cost or suboptimal resource
• There are five design principles for cost optimization in the cloud:
– Adopt a consumption model
– Measure overall efficiency
– Stop spending money on data center operations
– Analyze and attribute expenditure
– Use managed services to reduce cost of ownership