Module 2 Flashcards
Cloud Economics and Billing
three fundamental drivers of cost with AWS:
compute,
storage, and
outbound data transfer
Charged per hour/second*
Varies by instance type
*Linux only
Compute
Charged typically per GB
Storage
*Outbound is aggregated and charged
*Inbound has no charge (with some exceptions)
*Charged typically per GB
Data transfer
In most cases, there is no charge for ___ data transfer or for data transfer between other AWS services within the same AWS Region.
inbound
___ data transfer is aggregated across services and then charged at the ___ data transfer rate. This charge appears on the monthly statement as ____
Outbound
AWS Data Transfer Out
How do you pay for AWS?
*Pay for what you use
*Pay less when you reserve
*Pay less when you use more
*Pay even less as AWS grows
you pay for exactly the amount of resources that you actually need.
utility-style pricing model
Pay only for the services that you consume, with no large upfront expenses.
Pay for what you use
Invest in Reserved Instances (RIs) to save up to 75 percent
Pay less when you reserve
Reserved Instances are available in three options:
*All Upfront Reserved Instance (or AURI)
*Partial Upfront Reserved Instance (or PURI)
*No Upfront Payments Reserved Instance (or NURI)
When you buy Reserved Instances, you receive a greater discount when you make a larger upfront payment.
True
offer lower discounts, but they give you the option to spend less upfront.
Partial Upfront RIs
Invest in reserved capacity for these services
Amazon Elastic Compute Cloud (Amazon EC2)
Amazon Relational Database Service (Amazon RDS
Realize volume-based discounts:
*Savings as usage increases.
*the more you use, the less you pay per GB.
*Multiple storage services deliver lower storage costs based on needs.
Pay less by using more
*Tiered pricing for services like
Amazon Simple Storage Service (Amazon S3),
Amazon Elastic Block Store (Amazon EBS), or
Amazon Elastic File System (Amazon EFS)
As AWS grows:
*AWS focuses on lowering cost of doing business.
*This practice results in AWS passing savings from economies of scale to you.
*Since 2006, AWS has lowered pricing 75 times (as of September 2019).
*Future higher-performing resources replace current resources for no extra charge.
Pay even less as AWS grows
*Meet varying needs
*Available for high-volume projects with unique requirements
Custom pricing
Enables you to gain free hands-on experience with the AWS platform, products, and services. Free for 1 year for new customers.
AWS Free Tier
AWS also offers a variety of services for no additional charge
AWS Virtual Private Cloud (Amazon VPC)Z
AWS Identity and Access Management (IAM)
Consolidated Billing
AWS Elastic Beanstalk
AWS CloudFormation
Automatic Scaling
AWS OpsWorks
enables you to provision a logically isolated section of the AWS Cloud where you can launch AWS resources in a virtual network that you define
AWS Virtual Private Cloud (Amazon VPC)
controls your users’ access to AWS services and resources.
AWS Identity and Access Management (IAM)
is a billing feature in AWS Organizations to consolidate payment for multiple AWS accounts or multiple Amazon Internet Services Private Limited (AISPL) accounts*.
Consolidated Billing
Consolidated billing provides
*One bill for multiple accounts.
*The ability to easily track each account’s charges.
*The opportunity to decrease charges as a result of volume pricing discounts from combined usage.
*And you can consolidate all of your accounts using Consolidated Billing and get tiered benefits
is an even easier way for you to quickly deploy and manage applications in the AWS Cloud.
AWS Elastic Beanstalk
gives developers and systems administrators an easy way to create a collection of related AWS resources and provision them in an orderly and predictable fashion
AWS CloudFormation
automatically adds or removes resources according to conditions you define. The resources you are using increase seamlessly during demand spikes to maintain performance and decrease automatically during demand lulls to minimize costs.
Automatic Scaling
is an application management service that makes it easy to deploy and operate applications of all shapes and sizes
AWS OpsWorks
The main difference between AWS accounts and AISPL accounts is the ___.
seller of record
AWS accounts are administered by Amazon Web Services, Inc., but AISPL accounts are administered by Amazon Internet Services Private Limited.
There is no charge (with some exceptions) for:
*Inbound data transfer.
*Data transfer between services within the same AWS Region.
enables you to begin using certain services without having to worry about incurring costs for the specified period.
The AWS Free Tier
Three types of offers are available:
Always Free
12 Months Free
Trials
These offers do not expire and are available to all AWS customers.
For example, AWS Lambda allows 1 million free requests and up to 3.2 million seconds of compute time per month. Amazon DynamoDB allows 25 GB of free storage per month.
Always Free
These offers are free for __ following your initial sign-up date to AWS.
Examples include specific amounts of Amazon S3 Standard Storage, thresholds for monthly hours of Amazon EC2 compute time, and amounts of Amazon CloudFront data transfer out.
12 months free
offers start from the date you activate a particular service. The length of each trial might vary by number of days or the amount of usage in the service.
For example, Amazon Inspector offers a 90-day free trial. Amazon Lightsail (a service that enables you to run virtual private servers) offers 750 free hours of usage over a 30-day period.
Short-term free trial / trials
For each service, you pay for exactly the amount of resources that you actually use, without requiring long-term contracts or complex licensing.
Pay for what you use
Some services offer reservation options that provide a significant discount compared to On-Demand Instance pricing.
For example, suppose that your company is using Amazon EC2 instances for a workload that needs to run continuously. You might choose to run this workload on Amazon EC2 Instance Savings Plans, because the plan allows you to save up to 72% over the equivalent On-Demand Instance capacity.
Pay less when you reserve
Some services offer tiered pricing, so the per-unit cost is incrementally lower with increased usage.
For example, the more Amazon S3 storage space you use, the less you pay for it per GB.
Pay less with volume-based discounts when you use more
lets you explore AWS services and create an estimate for the cost of your use cases on AWS. You can organize your AWS estimates by groups that you define. A group can reflect how your company is organized, such as providing estimates by cost center.
AWS Pricing Calculator
For __ you are charged based on the number of requests for your functions and the time that it takes for them to run.
AWS Lambda
allows 1 million free requests and up to 3.2 million seconds of compute time per month.
AWS Lambda
With __, you pay for only the compute time that you use while your instances are running.
Amazon EC2
For some workloads, you can significantly reduce Amazon EC2 costs by using ____. For example, suppose that you are running a batch processing job that is able to withstand interruptions.
Spot Instances
Using a ___would provide you with up to 90% cost savings while still meeting the availability requirements of your workload.
Spot Instance
For Amazon S3 pricing, consider the following cost components:
Storage
Requests and data retrievals
Data transfer
Management and replication
You pay for only the storage that you use. You are charged the rate to store objects in your Amazon S3 buckets based on your objects’ sizes, storage classes, and how long you have stored each object during the month.
For Amazon S3 pricing, consider the following cost components:
Storage
You pay for requests made to your Amazon S3 objects and buckets. For example, suppose that you are storing photo files in Amazon S3 buckets and hosting them on a website. Every time a visitor requests the website that includes these photo files, this counts towards requests you must pay for.
For Amazon S3 pricing, consider the following cost components:
Requests and data retrievals
There is no cost to transfer data between different Amazon S3 buckets or from Amazon S3 to other services within the same AWS Region. However, you pay for data that you transfer into and out of Amazon S3, with a few exceptions. There is no cost for data transferred into Amazon S3 from the internet or out to Amazon CloudFront. There is also no cost for data transferred out to an Amazon EC2 instance in the same AWS Region as the Amazon S3 bucket.
For Amazon S3 pricing, consider the following cost components:
Data transfer
is installed locally on a company’s own computers and servers.
There are several fixed costs, also known as capital expenses, that are associated with the traditional infrastructure.
Capital expenses include facilities, hardware, licenses, and maintenance staff.
Scaling up can be expensive and time-consuming.
Scaling down does not reduce fixed costs.
on-premises infrastructure
You pay for the storage management features that you have enabled on your account’s Amazon S3 buckets. These features include Amazon S3 inventory, analytics, and object tagging.
For Amazon S3 pricing, consider the following cost components:
Management and replication
is purchased from a service provider who builds and maintains the facilities, hardware, and maintenance staff.
A customer pays for what is used.
Scaling up or down is simple.
Costs are easy to estimate because they depend on service use.
cloud infrastructure
Using __ involves a discussion that is based on capital expenditure, long planning cycles, and multiple components to buy, build, manage, and refresh resources over time.
on-premises IT
Using the __ involves a discussion about flexibility, agility, and consumption-based costs
AWS Cloud
is the financial estimate to help identify direct and indirect costs of a system.
Total Cost of Ownership (TCO)
Why use TCO?
*To compare the costs of running an entire infrastructure environment or specific work load on-premises versus on AWS
*To budget and build the business case for moving to the cloud
Some of the costs that are associated with data center management include:
*Server costs for both hardware and software, and facilities costs to house the equipment.
*Storage costs for the hardware, administration, and facilities.
*Network costs for hardware, administration, and facilities.
*And IT labor costs that are required to administer the entire solution.
With the cloud, most costs are upfront and readily calculated. For example, cloud providers give transparent pricing based on different usage metrics, such as RAM, storage, and bandwidth, among others. Pricing is frequently fixed per unit of time.
True
calculations of in-house costs must take into account all:
*Direct costs that accompany running a server—like power, floor space, storage, and IT operations to manage those resources.
*Indirect costs of running a server, like network and storage infrastructure
AWS offers the __ to help you estimate a monthly AWS bill.
AWS Pricing Calculator
The AWS Pricing Calculator helps you:
*Estimate monthly costs of AWS services
*Identify opportunities for cost reduction
*Model your solutions before building them
*Explore price points and calculations behind your estimate
*Find the available instance types and contract terms that meet your needs
*Name your estimate and create and name groups of services
are containers that you add services to in order to organize and build your estimate.
Groups
you can organize your groups and services by
cost-center, department, product architecture, etc.
AWS Pricing Calculator estimates are broken into:
first 12 months total,
total upfront, and
total monthly
The total estimate for your current group and all of the services and groups in your current group. It combines the upfront and monthly estimates.
The total for your first 12 months
How much you are estimated to pay upfront as you set up your AWS stack.
Your total upfront
How much you’re estimated to spend every month while you run your AWS stack.
Your total monthly
Within a __, you can see how much each service is estimated to cost.
group
Hard benefits of cloud
*Reduced spending on compute, storage, networking, security
*Reductions in hardware and software purchases (capex)
*Reductions in operational costs, backup, and disaster recovery
*Reduction in operations personnel
Soft Benefits of cloud
*Reuse of service and applications that enable you to define (and redefine solutions) by using the same cloud service
*Increased developer productivity
*Improved customer satisfaction
*Agile business processes that can quickly respond to new and emerging opportunities
*Increase in global reach
defines what will be spent on the technology after adoption—or what it costs to run the solution.
Cloud Total Cost of Ownership