Pricing & Billing Flashcards

1
Q

Pricing Models in AWS

A

AWS has 4 pricing models:
1. Pay as you go: pay for what you use, remain agile, responsive, meet scale demands
2. Save when you reserve: minimize risks, predictably manage budgets, comply with long-terms requirements
* Reservations are available for EC2 Reserved Instances, DynamoDB Reserved Capacity, ElastiCache Reserved Nodes, RDS Reserved Instance, Redshift Reserved Nodes
3. Pay less by using more: volume-based discounts
4. Pay less as AWS grows

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2
Q

Free services & free tier in AWS

A
  • IAM, VPC, Consolidated Billing
  • Elastic Beanstalk, CloudFormation, Auto Scaling Groups (You do pay for the resources created)
  • Free Tier: EC2 t2.micro instance for a year, S3, EBS, ELB, AWS Data transfer
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3
Q

Compute Pricing – EC2

A
  • On-demand instances:
    * Minimum of 60s
    * Pay per second (Linux/Windows) or per hour (other)
  • Reserved instances:
    • Up to 75% discount compared to On-demand on hourly rate
    • 1- or 3-years commitment
    • All upfront, partial upfront, no upfront
  • Spot instances:
    • Up to 90% discount compared to On-demand on hourly rate
    • Bid for unused capacity
  • Dedicated Host:
    • On-demand
    • Reservation for 1 year or 3 years commitment
  • Savings plans as an alternative to save on sustained usage
  • Only charged for what you use
  • Number of instances
  • Instance configuration:
    • Physical capacity
    • Region
    • OS and software
    • Instance type
    • Instance size
  • ELB running time and amount of data processed
  • Detailed monitoring
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4
Q

Compute Pricing – Lambda & ECS

A
  • Lambda:
    • Pay per call
    • Pay per duration
  • ECS: EC2 Launch Type Model: No additional fees, you pay for AWS resources stored and created in your application
  • Fargate: Fargate Launch Type Model: Pay for vCPU and memory resources allocated to your applications in your containers
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5
Q

Storage Pricing – S3

A
  • Storage class: S3 Standard, S3 Infrequent Access, S3 One-Zone IA, S3 Intelligent Tiering, S3 Glacier and S3 Glacier Deep Archive
  • Number and size of objects: Price can be tiered (based on volume)
  • Number and type of requests
  • Data transfer OUT of the S3 region
  • S3 Transfer Acceleration
  • Lifecycle transitions
  • Similar service: EFS (pay per use, has infrequent access & lifecycle rules)
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6
Q

Storage Pricing - EBS

A
  • Volume type (based on performance)
  • Storage volume in GB per month provisionned
  • IOPS:
    • General Purpose SSD: Included
    • Provisioned IOPS SSD: Provisionned amount in IOPS
    • Magnetic: Number of requests
  • Snapshots: Added data cost per GB per month
  • Data transfer: Outbound data transfer are tiered for volume discounts. Inbound is free
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7
Q

Database Pricing - RDS

A
  • Per hour billing
  • Database characteristics:
    • Engine
    • Size
    • Memory class
  • Purchase type:
    • On-demand
    • Reserved instances (1 or 3 years) with required up-front
  • Backup Storage: There is no additional charge for backup storage up to 100% of your total database storage for a region.
  • Additional storage (per GB per month)
  • Number of input and output requests per month
  • Deployment type (storage and I/O are variable):
    • Single AZ
    • Multiple AZs
  • Data transfer:
    • Outbound data transfer are tiered for volume discounts
    • Inbound is free
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8
Q

Content Delivery – CloudFront Pricing

A
  • Pricing is different across different geographic regions
  • Aggregated for each edge location, then applied to your bill
  • Data Transfer Out (volume discount)
  • Number of HTTP/HTTPS requests
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9
Q

Networking Costs in AWS per GB - Simplified

A
  • Between AZs use Private IP instead of Public IP for good savings and better network performance
  • Use same AZ for maximum savings (at the cost of high availability)
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10
Q

Savings Plan

A
  • Commit a certain $ amount per hour for 1 or 3 years
  • Easiest way to setup long-term commitments on AWS
  • EC2 Savings Plan
    * Up to 72% discount compared to On-Demand
    * Commit to usage of individual instance families in a region (e.g. C5 or M5)
    * Regardless of AZ, size (m5.xl to m5.4xl), OS (Linux/Windows) or tenancy
    * All upfront, partial upfront, no upfront
  • Compute Savings Plan
    * Up to 66% discount compared to On-Demand
    * Regardless of Family, Region, size, OS, tenancy, compute options
    * Compute Options: EC2, Fargate, Lambda
  • Machine Learning Savings Plan: SageMaker…
  • Setup from the AWS Cost Explorer console
  • Estimate pricing at https://aws.amazon.com/savingsplans/pricing/
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11
Q

AWS Compute Optimizer

A
  • Reduce costs and improve performance by recommending optimal AWS resources for your workloads
  • Helps you choose optimal configurations and right- size your workloads (over/under provisioned)
  • Uses Machine Learning to analyze your resources’ configurations and their utilization CloudWatch
    metrics
  • Supported resources:
    EC2 instances
    EC2 Auto Scaling Groups
    EBS volumes
    Lambda functions
  • Lower your costs by up to 25%
  • Recommendations can be exported to S3
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12
Q

Billing and Costing Tools

A
  • Estimating costs in the cloud:
    * Pricing Calculator
  • Tracking costs in the cloud:
    * Billing Dashboard
    * Cost Allocation Tags
    * Cost and Usage Reports
    * Cost Explorer
  • Monitoring against costs plans:
    * Billing Alarms
    * Budgets
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13
Q

AWS Pricing Calculator

A
  • Available at https://calculator.aws/
  • Estimate the cost for your solution architecture
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14
Q

AWS Billing Dashboard

A
  • High level overview + free tier dashboard
  • Spend Summary
  • Month-to-Date Spend by Service
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15
Q

Cost Allocation Tags

A
  • Use cost allocation tags to track your AWS costs on a detailed level
  • AWS generated tags
    Automatically applied to the resource you create
    Starts with Prefix aws: (e.g. aws: createdBy)
  • User-defined tags
    Defined by the user
    Starts with Prefix user:
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16
Q

Tagging and Resource Groups

A
  • Tags are used for organizing resources:
    * EC2: instances, images, load balancers, security groups…
    * RDS, VPC resources, Route 53, IAM users, etc…
    * Resources created by CloudFormation are all tagged the same way
  • Free naming, common tags are: Name, Environment, Team …
  • Tags can be used to create Resource Groups
    * Create, maintain, and view a collection of resources that share common tags
    * Manage these tags using the Tag Editor
17
Q

Cost and Usage Reports

A
  • Dive deeper into your AWS costs and usage
  • The AWS Cost & Usage Report contains the most comprehensive set of AWS cost and usage data available, including additional metadata about AWS services, pricing, and reservations (e.g., Amazon EC2 Reserved Instances (RIs)).
  • The AWS Cost & Usage Report lists AWS usage for each service category used by an account and its IAM users in hourly or daily line items, as well as any tags that you have activated for cost allocation purposes.
  • Can be integrated with Athena, Redshift or QuickSight
18
Q

Cost Explorer

A
  • Visualize, understand, and manage your AWS costs and usage over time
  • Create custom reports that analyze cost and usage data.
  • Analyze your data at a high level: total costs and usage across all accounts
  • Or Monthly, hourly, resource level granularity
  • Choose an optimal Savings Plan (to lower prices on your bill)
  • Forecast usage up to 12 months based on previous usage
19
Q

Billing Alarms in CloudWatch

A
  • Track overall and per-service billing
  • Billing data metric is stored in CloudWatch us-east-1
  • Billing data are for overall worldwide AWS costs
  • It’s for actual cost, not for projected costs
  • Intended a simple alarm (not as powerful as AWS Budgets)
20
Q

AWS Budgets

A
  • Create budget and send alarms when costs exceeds the budget
  • 4 types of budgets: Usage, Cost, Reservation, Savings Plans
  • For Reserved Instances (RI)
    * Track utilization
    * Supports EC2, ElastiCache, RDS, Redshift
  • Up to 5 SNS notifications per budget
  • Can filter by: Service, Linked Account, Tag, Purchase Option, Instance Type, Region, Availability Zone, API Operation, etc…
  • Same options as AWS Cost Explorer!
  • 2 budgets are free, then $0.02/day/budget
21
Q

AWS Cost Anomaly Detection

A
  • Continuously monitor your cost and usage using ML to detect unusual spends
  • It learns your unique, historic spend patterns to detect one-time cost spike and/or continuous cost increases (you don’t need to define thresholds)
  • Monitor AWS services, member accounts, cost allocation tags, or cost categories
  • Sends you the anomaly detection report with root-cause analysis
  • Get notified with individual alerts or daily/weekly summary (using SNS)
22
Q

Service Quotas

A

Notify you when you’re close to service quota threshold

23
Q
A