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
Typically, a __ looks at the as-is on-premises infrastructure and compares it with the cost of the to-be infrastructure state in the cloud.
TCO analysis
A __ can be used to determine the value that is generated while considering spending and saving.
return on investment (ROI) analysis
This analysis starts by identifying the hard benefits in terms of direct and visible cost reductions and efficiency improvements.
return on investment (ROI) analysis
are value points that are challenging to accurately quantify, but they can be more valuable than the hard savings
Soft savings
Which identities and resources can SCPs be applied to?
An individual member account
An organizational unit (OU)
the organization root
In AWS Organizations, you can apply __ to the organization root, an individual member account, or an OU.
service control policies (SCPs)
An __ affects all IAM users, groups, and roles within an account, including the AWS account root user.
service control policy (SCP)
You can apply IAM policies to
IAM users, groups, or roles.
You cannot apply an IAM policy to
the AWS account root user.
use __ to consolidate and manage multiple AWS accounts within a central location.
AWS Organizations
When you create an organization, AWS Organizations automatically creates a ___, which is the parent container for all the accounts in your organization.
root
In AWS Organizations, you can centrally control permissions for the accounts in your organization by using
service control policies (SCPs)
enable you to place restrictions on the AWS services, resources, and individual API actions that users and roles in each account can access.
service control policies (SCPs)
In AWS Organizations, you can group accounts into ___ to make it easier to manage accounts with similar business or security requirements.
organizational units (OUs)
When you apply a policy to __, all the accounts in the __ automatically inherit the permissions specified in the policy.
organizational units (OUs)
By organizing separate accounts into __, you can more easily isolate workloads or applications that have specific security requirements.
organizational units (OUs)
is a free account management service that enables you to consolidate multiple AWS accounts into an organization that you create and centrally manage.
AWS Organizations
The main benefits of AWS Organizations are:
*Centrally managed access policies across multiple AWS accounts.
*Controlled access to AWS services.
*Automated AWS account creation and management.
*Consolidated billing across multiple AWS accounts.
include consolidated billing and account management capabilities that help you to better meet the budgetary, security, and compliance needs of your business
AWS Organizations
An OU can have only one parent and, currently, each account can be a member of exactly one OU.
True
An OU can also contain other OUs.
True
An account is a standard AWS account that contains your AWS resources. You can attach a policy to an account to apply controls to only that one account.
True
An OU is a container for accounts within a root.
True
AWS Organizations enable you to:
Policy-based account management
Group based account management
Application programming interfaces (APIs) that automate account management
Consolidated billing
Create __ that centrally control AWS services across multiple AWS accounts.
service control policies (SCPs)
Create __ and then attach policies to a group to ensure that the correct policies are applied across the accounts.
groups of accounts
Simplify account management by using __ to automate the creation and management of new AWS accounts.
application programming interfaces (APIs)
Simplify the billing process by setting up a single payment method for all the AWS accounts in your organization. With ___, you can see a combined view of charges that are incurred by all your accounts, and you can take advantage of pricing benefits from aggregated usage.
consolidated billing
provides a central location to manage billing across all of your AWS accounts, and the ability to benefit from volume discounts.
Consolidated billing
AWS Organizations does not replace associating __ policies with users, groups, and roles within an AWS account.
AWS Identity and Access Management (IAM)
Security with AWS Organizations
Control access with AWS Identity and Access Management (IAM).
IAM policies enable you to allow or deny access to AWS services for users, groups, and roles.
Service control policies (SCPs) enable you to allow or deny access to AWS services for individuals or group accounts in an organizational unit (OU).
With __ ,you can allow or deny access to AWS services(such as Amazon S3), individual AWS resources(such as a specific S3 bucket), or individual API actions(such as s3:CreateBucket).
IAM policies
With Organizations, you use __to allow or deny access to particular AWS services for individual AWS accounts or for groups of accounts in an OU.
service control policies (SCPs)
__ can be applied only to IAM users, groups, or roles, and it can never restrict the AWS account root user.
IAM policy
The specified actions from __ affect all IAM users, groups, and roles for an account, including the AWS account root user.
an attached SCP
Organizations setup
Step 1 Create Organization
Step 2 Create organizational units
Step 3 Create service control policies
Step 4 Test restrictions
Limits of AWS Organizations
Limits on names
Maximum and minimum values for entities
In Organizations, Names must be composed of Unicode characters and not exceed 250 characters in length.
True
List of the AWS Organizations limits,
including names,
number of accounts (varies),
number of roots (1),
number of OUs (1,000),
number of policies (1,000),
max size of control policy document (5,120 bytes),
max nesting of BUs (5 levels of BUs under a root),
invitations sent per day (20),
member accounts created concurrently (5),
and entities to which you can attach a policy (unlimited).
Accessing AWS Organizations
AWS Management Console
AWS Command Line Interface (AWS CLI) tools
Software development kits (SDKs)
HTTPS Query application programming interfaces (API)
is a browser-based interface that you can use to manage your organization and your AWS resources. You can perform any task in your organization by using the console.
AWS Management Console
enable you to issue commands at your system’s command line to perform AWS Organizations tasks and AWS tasks. This method can be faster and more convenient than using the console
AWS Command Line Interface(AWS CLI) tools
to handle tasks such as cryptographically signing requests, managing errors, and retrying requests automatically.AWS SDKs consist of libraries and sample code for various programming languages and platforms, such as Java, Python, Ruby, .NET, iOS, and Android.
AWS software development kits (SDKs)
gives you programmatic access to AWS Organizations and AWS. You can use the API to issue HTTPS requests directly to the service. When you use the HTTPS API, you must include code to digitally sign requests by using your credentials.
AWS Organizations HTTPS Query API
Use the __ to pay your AWS bill, monitor your usage, and analyze and control your costs.
AWS Billing & Cost Management dashboard
Compare your current month-to-date balance with the previous month, and get a forecast of the next month based on current usage.
View month-to-date spend by service.
View Free Tier usage by service.
Access Cost Explorer and create budgets.
Purchase and manage Savings Plans.
Publish AWS Cost and Usage Reports(opens in a new tab).
AWS Billing & Cost Management dashboard
You can set a custom time period and determine whether you would like to view your data at a monthly or daily level of granularity.
True
is the service that you use to pay your AWS bill, monitor your usage, and budget your costs.
AWS Billing and Cost Management
enables you to forecast and obtain a better idea of what your costs and usage might be in the future so that you can plan ahead
AWS Billing and Cost Management
With the filtering and grouping functionality, you can further analyze your data using a variety of available dimensions.
True
enables you to identify opportunities for optimization by understanding your cost and usage data trends and how you are using your AWS implementation.
AWS Cost and Usage Report Tool
lets you view the status of your month-to-date AWS expenditure, identify the services that account for the majority of your overall expenditure, and understand at a high level how costs are trending
AWS Billing Dashboard
graph that shows you how much you spent last month, the estimated costs of your AWS usage for the month to date, and a forecast for how much you are likely to spend this month.
Spend Summary
graph,which shows the top services that you use most and the proportion of costs thatare attributed to that service.
Month-to-Date Spend by Service
tools that you can use to estimate and plan your AWS costs
AWS Bills,
AWS Cost Explorer,
AWS Budgets, and
AWS Cost and Usage Reports.
lists the costs that you incurred over the past month for each AWS service, with a further breakdown by AWS Region and linked account.
AWS Bills page
This tool gives you access to the most up-to-date information on your costs and usage, including your monthly bill and the detailed breakdown of the AWS services that you use.
AWS Bills page
The AWS Billing and Cost Management console includes the __ for viewing your AWS cost data as a graph.
Cost Explorer page
you can visualize, understand, and manage your AWS costs and usage over time.
Cost Explorer
includes a default report that visualizes your costs and usage for your top cost-incurring AWS services. The monthly running costs report gives you an overview of all your costs for the past 3 months.
Cost Explorer
provides forecasted numbers for the coming month, with a corresponding confidence interval
Cost Explorer
*View charts of your costs.
*View cost data for the past 13 months.
*Forecast how much you are likely to spend over the next 3 months.
*Discover patterns in how much you spend on AWS resources over time and identify cost problem areas.
*Identify the services that you use the most
*View metrics, like which Availability Zones have the most traffic or which linked AWS account is used the most.
The Cost Explorer is a free tool that enables you to:
uses the cost visualization that is provided by Cost Explorer to show you the status of your budgets and to provide forecasts of your estimated costs.
AWS Budgets
You can also use __ to create notifications for when you go over your budget for the month, or when your estimated costs exceed your budget.
AWS Budgets
__ can be tracked at the monthly, quarterly, or yearly level, and you can customize the start and end dates.
AWS Budgets
Budget alerts can be sent via email or via
Amazon Simple Notification Service (Amazon SNS)
is a single location for accessing comprehensive information about your AWS costs and usage.
AWS Cost and Usage Report
This tool lists the usage for each service category that is used by an account (and its users) in hourly or daily line items, and any tax that you activated for tax allocation purposes.
AWS Cost and Usage Report
Provide unique combination of tools and expertise
AWS Support
can provide you with a unique combination of tools and expertise based on your current or future planned use cases.
AWS Support
AWS Support is provided for:
*Experimenting with AWS
*Production use of AWS
*Business-critical use of AWS
can provide proactive guidance, architectural review, and continuous ongoing communication to keep you informed and prepared as you plan, deploy, and optimize your solutions.
AWS Support hasTechnical Account Managers (TAMs)
to ensure that you follow best practices to increase performance and fault tolerance in the AWS environment,
AWS Support has AWS Trusted Advisor.
like a customized cloud expert.It is an online resource that checks for opportunities to reduce monthly expenditures and increase productivity.
AWS Trusted Advisor
For account assistance, __ is a billing and account expert who will provide quick and efficient analysis on billing and account issues. The concierge addresses all non-technical billing and account-level inquiries.
AWS Support Concierge
you can create budgets to plan your service usage, service costs, and instance reservations.
AWS Budgets
The information in ___ updates three times a day. This helps you to accurately determine how close your usage is to your budgeted amounts or to the AWS Free Tier limits.
AWS Budgets
In AWS Budgets, you can also set custom alerts when your usage exceeds (or is forecasted to exceed) the budgeted amount.
AWS Budgets
is a tool that lets you visualize, understand, and manage your AWS costs and usage over time.
AWS Cost Explorer
includes a default report of the costs and usage for your top five cost-accruing AWS services. You can apply custom filters and groups to analyze your data.
AWS Cost Explorer
__ is your primary point of contact at AWS.
Technical Account Manager (TAM).
The Enterprise On-Ramp and Enterprise Support plans include access to a
Technical Account Manager (TAM).
Only the Business, Enterprise On-Ramp, and Enterprise Support plans include all AWS Trusted Advisor checks. Of these three Support plans, the Business Support plan has a lower cost.
True
provide expert engineering guidance, help you design solutions that efficiently integrate AWS services, assist with cost-effective and resilient architectures, and provide direct access to AWS programs and a broad community of experts.
Technical Account Manager (TAM).
AWS offers four different Support plans to help you troubleshoot issues, lower costs, and efficiently use AWS services.
Basic Support
Developer Support
Business Support
Enterprise Support
Customers that run production workloads
Business Support
Support for early development on AWS
Developer Support
Resource Center access, Service Health Dashboard, product FAQs, discussion forums, and support for health checks
Basic Support
Customers that run business and mission-critical workloads
Enterprise Support
*24/7 access to customer service, documentation, whitepapers and support forums.
Access to six core Trusted Advisor checks.
Access to Personal Health Dashboard.
Basic Support Plan
offers resources for customers that are running production workloads on AWS, and any customers who:
*Run one or more applications in production environments.
*Have multiple services activated, or use key services extensively.
*Depend on their business solutions to be available, scalable, and secure
Business Support Plan
offers resources for customers that are testing or doing early development on AWS, and any customers who:
*Want access to guidance and technical support.
*Are exploring how to quickly put AWS to work.
*Use AWS for non-production workloads or applications.
Developer Support Plan
offers resources for customers that are running business and mission-critical workloads on AWS, and any customers who want to:
*Focus on proactive management to increase efficiency and availability.
*Build and operate workloads that follow AWS best practices.
*Use AWS expertise to support launches and migrations.
*Use a Technical Account Manager (TAM),who provides technical expertise for the full range of AWS services and obtains a detailed understanding of your use case and technology architecture.
Enterprise Support Plan
is the primary point of contact for ongoing support needs.
Technical Account Manager
who provides technical expertise for the full range of AWS services and obtains a detailed understanding of your use case and technology architecture.
Technical Account Manager
five different severity levels:
critical
urgent
high
normal
low
You have a general development question, or you want to request a feature.
low
Non-critical functions of your application are behaving abnormally, or you have a time-sensitive development question.
normal
Your business is at risk. Critical functions of your application are unavailable
critical
Important functions of your application are impaired or degraded.
high
Your business is significantly impacted. Important functions of your application are unavailable
urgent
is a concept to help you understand and compare the costs that are associated with different deployments.
Total Cost of Ownership
WS provides the ___ to assist you with the calculations that are needed to estimate cost savings.
AWS Pricing Calculator
Use the AWS Pricing Calculator to:
*Estimate monthly costs
*Identify opportunities to reduce monthly costs
*Model your solutions before building them
*Explore price points and calculations behind your estimate
*Find the available instance types and contracts that meet your needs
provides you with tools to help you access, understand, allocate, control, and optimize your AWS costs and usage.
AWS Billing and Cost Management
AWS Billing and Cost Management provides tools to give you access to the most comprehensive information about your AWS costs and usage including which AWS services are the main cost drivers.
AWS Bills,
AWS Cost Explorer,
AWS Budgets, and
AWS Cost and Usage Reports.
Which AWS service provides infrastructure security optimization recommendations?
AWS Trusted Advisor
