Billing and Pricing Flashcards
What is AWS’s 5 pricing policies
1) Pay as you go
2) Pay less when you reserve (longer contract = greater saving)
3) Pay less per unit by using more
4) Pay even less as AWS grows
5) Custom pricing
What is the difference between OPEX and CAPEX
CAPEX: Stands for Capital expenditure which is where you pay upfront. Its a fixed, sunk cost
OPEX: Stands for Operational expenditure which is where you pay for what you use (think utility billing)
What are AWS 4 best practices and key principles for pricing models?
1) Understand the fundamentals of pricing. You pay for compute, storage and data outbound (not data inbound)
2) Start early with cost optimization. Adopting cloud required technical and organisational evolution. Put cost visibility and control mechanisms in place before the env grows large and complex
3) Maximise the power of flexibility. AWS services are priced independently and transparently, so you pay for what you need. No contracts are required unless you choose to save through reservation. Paying on an as-needed basis means you can focus on your innovation and be fully elastic. You dont pay for services when you dont need them
4) Use the right pricing model for the job. AWS offers several pricing models depending on the product: on demand, dedicated instances, spot, reserved
What is the AWS Free Tier
To help new AWS customers get started in the cloud. You can run a free Amazon EC2 microinstance for a year while leveraging S3, EBS, Load balancing and other services
Which AWS services are free (7)
1) Amazon VPC (whenever you provision an EC2 this sits in a VPC)
2) Elastic beanstalk (but resources provisioned are not)
3) CloudFormation (but resources provisioned are not)
4) IAM
5) Autoscaling (pay for EC2 it provisions)
6) Opsworks (Dev ops products. Pay for resources provisioned)
7) Consolidated billing
EC2: what determines price?
1) Clock hours of server time (instance type determines pay per hour/second)
2) Instance type (FIGHTDRMCPXY)
3) Pricing model (spot, reserved, on demand, dedicated)
4) Load balancing
5) Detailed monitoring (standard monitoring is every 5 mins, detailed every 1 min)
6) Autoscaling (more than one EC2)
7) Operating systems and software packages
What are the 4 EC2 pricing models
1) On demand
2) Reserved
3) Spot
4) Dedicated Host
What is EC2: On Demand pricing model and use case?
Pay fixed rate by hour/second with no commitment
Use case: Users wanting low cost and flexibility without up-front payments and commitment, apps with short term unpredicatable workloads that cant be interrupted, or applications being developed/tested for the first time
What is EC2: Reserved pricing model and use case?
Provides you with capacity reservation and offer a significant discount. Contracts terms are 1-3 year. Pay less for longer contracts and upfront
Use case: Apps with steady state/predictable usage, applications that require reserved capacity or users able to make upfront payments to reduce costs further
What is EC2: Spot pricing model and use case?
Enables you to bid the price you want for instance capacity, providing cost savings if your applications have flexible start/end times. When the price is above your bid, you lose the server
Use case: applications with a flexible start and end time, users with urgent computing need for large amounts of additional capacity, or apps only feasible at low computer prices e.g. genomics companies do work in the middle of the night
What is EC2: dedicated hosts pricing model and use case?
Physical EC2 servers dedicated for your use. Help reduce costs by allowing you to use existing server bound software licenses. Can be purchased on demand (hourly) or reserved (70% off)
Use case: useful for regulatory requirements that may not support multi-tenant virtualisation, licensing which does not support multi tenancy or cloud deployments.
For EC2: reserved instanced, what are the possible savings?
1 year contract
No upfront - $0 upfront, $44.53 monthly - 36% savings over on demand
Partial upfront - $256 upfront, $21.17 monthly - 39% savings
All upfront - $501 upfront, $0 monthly, 40% savings
3 year contract
No upfront - $0 upfront, $30.55 monthly - 56 savings over on demand
Partial upfront - $515 upfront, $14.60 monthly - 59% savings
All upfront - $968 upfront, $0 monthly, 62% savings
Lamdba: what determines price?
1) Requests
1 million per month free. $0.2 per 1 million thereafter
2) Duration
400000GB/s free per month, up to 3.2 million seconds. 0.0000016 every GB/second thereafter
3) Additional charges
If lambda uses other AWS services or transfers big data
EBS: what determines price?
1) Volume (per GB)
2) Snapshots (per GB)
3) Data transfer
S3: what determines price?
1) Storage class (Standard, IA, 1AZ IA)
2) Storage amount
3) Data transfer
Glacier: What determines price:
1) Storage
2) Data retrieval time
Expedited: 1-5 mins, $0.3 per GB, on demand - $0.01 per request, provisioned - $100 per provisioned capacity unit
Standard: 3-5 hours, $0.01 per GB, $0.05 per 1000 requests
Bulk: 5-12 hours, $0.0025 per GB, $0.25 per 1000 requests
Snowball: what determines price
1) Service fee per job
50TB = $200
80TB = $250
2) Daily charge
First 10 days free, after is 15 dollars a day
3) Data transfer
Data transfer to S3 is free. Data transfer out is not
RDS: what determines pricing
1) Clock hours of server time
2) Database characteristics (e.g. type, SQL)
3) Database purchase type
4) Number of database instances
5) Provisioned storage (size in GB)
6) Additional storage
7) Requests
8) Deployment types
9) Data transfer
DynamoDB: what determines pricing
1) Provisioned throughput - write
2) Provisioned throughput - read
3) Indexed data storage - charges hourly rate per GB disk space table consumes
CloudFront: what determines pricing
1) Traffic Distribution
2) Requests
3) Data transfer out
What is AWS budgets?
Gives ability to set custom budgets that alert you when your cost or usage (or are foretasted to exceed) your budgeted amount. Used to budget/predict costs BEFORE they have been incurred
What is AWS cost explorer?
Easy to use interface that allows you to visualize, understand and manage your AWS costs and usage over time. Used to explore costs AFTER they have been incurred
What are the 4 AWS support plans
1) Basic
2) Developer
3) Business
4) Enterprise
What does the basic support plan include?
Cost: Free
Tech support: NA
TAM: NO
Who can open cases: none
What does the developer support plan include?
Cost: $29 a month (scales based on usage)
Tech support: Business hour access via email
TAM: no
Who can open cases: 1 person, unlimited cases
What does the business support plan include?
Cost: $100 a month (scales based on usage)
Tech support: 24/7 email, chat, phone
TAM: No
Who can open cases: unlimited contacts, unlimited cases