How AWS Pricing Works
Jinesh Varia
jvaria@amazon.com
Technology Evangelist
AWS Pricing Philosophy
Pay as you go
• No minimum commitments or long-term contracts required
• Capex -> Opex
• Turn off when you don’t need it
Pay less per unit when you use more
• Tiered Pricing and Volume Discounts
Pay even less when you reserve
• Reserved pricing
Pay even less as AWS grows
• Efficiencies, optimizations and economies of scale result in passing the
savings back to you in the form of lower pricing
Custom Pricing
Did you know?
AWS Free Usage Tier
Free Services
Data Transfer
AWS Elastic Beanstalk
AWS CloudFormation
AWS IAM
Auto Scaling
Consolidated Billing
No Charge for Inbound
Data Transfer
New Customers
Amazon EC2
(Linux & Windows)
Amazon ELB
Amazon S3
Amazon EBS
For all customers
Amazon SQS/SNS
Amazon DynamoDB
Amazon SES
Amazon SWF
And more…
No Charge for Data
Transfer Between
Services within a region
19 price cuts in last 5 years
“It makes me look so good in front of my CFO.
When he [CFO] sees the savings in our AWS
monthly bill, he thinks that it is me who is
working hard on driving the costs down and
increasing efficiency of the company’s
infrastructure. I get all the credit for all the hard
work you guys are putting in.”.
Massive economies of scale and efficiency
improvements allow us to continually lower prices.
Amazon S3
Storage Class
•
Standard Storage vs. Reduced
Redundancy Storage (RRS)
Storage
•
Number and size of objects stored in
your Amazon S3 buckets
Requests
•
Number and type of requests (GET vs
PUT/COPY)
Data transfer
•
Amount of data transferred out of
the Amazon S3 region.
Amazon CloudFront
Traffic Distribution
• Data transfer and request pricing
vary across geographic regions
• Pricing is based on the edge
location where content is served
Requests
• The number and type of requests
(HTTP or HTTPS) made
• Geographic region in which the
requests are made.
Data Transfer Out
• Amount of data transferred out
of your Amazon CloudFront edge
locations.
Demo: Let’s estimate how much it will
cost to deploy a Simple Static Website
Demo
Amazon EC2 Pricing Fundamentals
Compute (Instances)
• Clock hours of server time
• Machine configuration
(instance type)
• Purchase type (OnDemand, Reserved, Spot)
• Operating systems and
software packages
Block Storage
• Additional storage,
backups, data transfer
Load balancing
• Data Processing
Detailed Monitoring
Elastic IP addresses
Data Transfer
• Regional Data Transfer
• Data Transfer out
Let’s estimate how much it will cost
to deploy a dynamic website
Demo
www.MyWebSite.com
(dynamic data)
Amazon Route 53
(DNS)
media.MyWebSite.com
(static data)
Elastic Load
Balancer
Amazon
CloudFront
Auto Scaling group : Web Tier
Amazon EC2
Auto Scaling group : App Tier
Amazon RDS
Availability Zone #1
Availability Zone #2
Amazon
RDS
Amazon S3
Different Purchase Options
On-demand
Instances
Reserved
Instances
Spot
Instances
Dedicated
Instances
• Pay as you go
• Onetime
upfront + Pay
as you go
• $56 for 1
year term
and then
$0.01/Hour
• Requested
Bid Price and
Pay as you go
• $0.005 /Hour
as of today at
9 AM
• Standard and
Reserved
• Multi-Tenant
Single
Customer
• $10/Region +
0.105/Hour
For Steady
State
Workloads
For Timeinsensitive
workloads
For Regulatory
and Compliant
Workloads
• Starts from
0.03/Hour
For Spiky
Workloads
Pay even less when you reserve
Reserved Instance
Offering Types
Savings over On-demand Instances (up to)
Light Utilization
Reserved Instances
42% 1-year
56% 3-year
Medium Utilization
Reserved Instances
49% 1 -year
66% 3-year
Heavy Utilization
Reserved Instances
54% 1-year
71% 3-year
Reserved Instances Example
Six servers/instances:
• 2 small Linux for app and web servers
• 2 large Linux for database servers
Description
Option 1
Option 2
Option 3
Option 4
App Servers
2 On-Demand
2 On-Demand
1 On-Demand
1 Reserved Medium
1 On-Demand
1 Reserved Light
Web Servers
2 On-Demand
2 On-Demand
1 On-Demand
1 Reserved Medium
1 On-Demand
1 Reserved Light
Database
Servers
2 On-Demand
2 Reserved
Medium
2 Reserved Medium
2 Reserved
Heavy
Cost Comparison (On-Demand vs. Reserved)
Monthly Cost
Option 1
Option 2
Option 3
Option 4
$746.64
$424.56
$344.04
$314.76
One-Time
Cost
1-year
-
$1820.00
$2275.00
$2405.00
3-year
-
$2800.00
$3500.00
$3700.00
Total Cost
1-year
$8959.68
$6914.72
$6403.48
$6182.12
3-year
$26879.04
$18084.16
$15885.44 $15031.36
-
23%
29%
31%
-
33%
41%
44%
Savings (over 1-year
Option 1)
3-year
Pay less when you use more
This is how your AWS monthly bill looks like
Elasticity is one of the fundamental
properties of the cloud that drives many of its
economic benefits
Elasticity + Auto Scaling
Infrastructure
Cost $
Large
Capital
Expenditure
You just lost
customers
Predicted
Demand
Opportunity
Cost
Wastage
Traditional
Hardware
Actual
Demand
Cloud
Automated
Elasticity
time
When you turn off your cloud resources,
you actually stop paying for them
Continuous optimization in your
architecture results in
recurring savings
as early as your next month’s bill
Optimize by time of the day
Daily CPU Load
14
12
Load
10
8
6
25% Savings
4
2
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hour
www.MyWebSite.com
(dynamic data)
Amazon Route 53
(DNS)
media.MyWebSite.com
(static data)
Elastic Load
Balancer
Amazon
CloudFront
Auto Scaling group : Web Tier
Amazon EC2
Auto Scaling group : App Tier
Amazon RDS
Availability Zone #1
Availability Zone #2
Amazon
RDS
Amazon S3
Optimize by seasonal cycles
Yearly CPU Load
12
10
50% Savings
Load
8
6
4
2
0
1
5
9
13
17
21 25 29 33
Weeks of the Year
37
41
45
49
Optimize during the month
End of the Month Scaling
3.5
DB Instance Type
3
2.5
2
75% Savings
1.5
1
0.5
0
1
3
5
7
9
11 13 15 17 19 21 23 25 27 29
Days of the Month
#1
Pay as You Go, Pay less when you use more,
#2
Pay even less when you reserve
#3
Elasticity is the fundamental property of the cloud
#4
Get Started Today with AWS Free Usage Tier
Thank you!
Jinesh Varia
jvaria@amazon.com Twitter:@jinman
http://aws.amazon.com