How AWS Pricing Works Jinesh Varia 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

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… AWS Elastic Beanstalk AWS CloudFormation AWS IAM Auto Scaling Consolidated Billing No Charge for Inbound Data Transfer No Charge for Data Transfer Between Services within a region AWS Free Usage Tier Did you know? Free Services Data Transfer

“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.”. 19 price cuts in last 5 years 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. 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. Amazon CloudFront

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 (On- Demand, 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

Availability Zone #2 Availability Zone #1 Auto Scaling group : App Tier Auto Scaling group : Web Tier Elastic Load Balancer (dynamic data) media.MyWebSite.com (static data) Amazon Route 53 (DNS) Amazon EC2 Amazon RDS Amazon RDS Amazon S3 Amazon CloudFront

On-demand Instances Pay as you go Starts from 0.03/Hour Reserved Instances Onetime upfront + Pay as you go $56 for 1 year term and then $0.01/Hour Spot Instances Requested Bid Price and Pay as you go $0.005 /Hour as of today at 9 AM Dedicated Instances Standard and Reserved Multi-Tenant Single Customer $10/Region /Hour For Spiky Workloads For Steady State Workloads For Time- insensitive workloads For Regulatory and Compliant Workloads Different Purchase Options

Reserved Instance Offering Types Savings over On-demand Instances (up to) Light Utilization Reserved Instances 42% 1-year56% 3-year Medium Utilization Reserved Instances 49% 1 -year66% 3-year Heavy Utilization Reserved Instances 54% 1-year71% 3-year Pay even less when you reserve

Reserved Instances Example Six servers/instances: 2 small Linux for app and web servers 2 large Linux for database servers DescriptionOption 1Option 2Option 3Option 4 App Servers2 On-Demand 1 On-Demand 1 Reserved Medium 1 On-Demand 1 Reserved Light Web Servers2 On-Demand 1 On-Demand 1 Reserved Medium 1 On-Demand 1 Reserved Light Database Servers 2 On-Demand2 Reserved Medium 2 Reserved Heavy

Cost Comparison (On-Demand vs. Reserved) Option 1Option 2Option 3Option 4 Monthly Cost$746.64$424.56$344.04$ One-Time Cost 1-year-$ $ $ year-$ $ $ Total Cost1-year$ $ $ $ year$ $ $ $ Savings (over Option 1) 1-year-23%29%31% 3-year-33%41%44%

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

You just lost customers You just lost customers Elasticity + Auto Scaling Infrastructure Cost $ time Large Capital Expenditure Large Capital Expenditure Predicted Demand Traditional Hardware Actual Demand Cloud Automated Elasticity

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 25% Savings

Availability Zone #2 Availability Zone #1 Auto Scaling group : App Tier Auto Scaling group : Web Tier Elastic Load Balancer (dynamic data) media.MyWebSite.com (static data) Amazon Route 53 (DNS) Amazon EC2 Amazon RDS Amazon RDS Amazon S3 Amazon CloudFront

Optimize by seasonal cycles 50% Savings

Optimize during the month 75% Savings

#2 Pay even less when you reserve #1 Pay as You Go, Pay less when you use more, #3 Elasticity is the fundamental property of the cloud #4 Get Started Today with AWS Free Usage Tier

Thank you! Jinesh Varia