AWS Whitepaper Key Points-How Pricing Works

Source and credits :- You can read full whitepaper here

  • There are 3 main areas of cost with AWS – Compute , Storage and outbound data transfer i.e. data out from aws cloud.
  • Any amount of data transferred  into aws cloud is free .
  • Data transferred between aws resources within the same region is free.
  • Data transferred out from aws is chargeable . It is aggregated across all the services and charged per GB. More the data transfer out less you will be charged.  
  • AWS works on Pay as you go model. There is no minimum commitment.
  • AWS offers three pricing model in case of compute and database services. On-Demand means launch the resources whenever you want with no long term commitment. Dedicated instance If you need dedicated hardware for your application. Of course it cost you more.Spot Instances means you purchase instances at discounted hourly rate. Reserve instances means you are Purchasing the instances with 1 yr. or 3 yr. commitment .
  • On demand Instances are best suitable for Applications with short-term, spiky, or unpredictable workloads that cannot be interrupted
  • Spot instances are used for the application that have flexible start and end times.
  • Reserve Instances are best suited for application which have predictable load and steady state usage.
  • Dedicated hosts is although costliest in these three option but if you have existing server bound software Licenses you can use this to reduce the overall cost.They can also help you to meet compliance requirements.
  • Linux instances are billed on per second basis ,whereas Windows instances are billed on per hour basis .
  • Amazon EC2 costs estimation includes clock hours of server up time, which instance type you are choosing, what’s the pricing model is (on demand, Spot or reserve), how many instances you are launching , which O.S you want to take.
  • AWS Lambda costs estimate includes number of requests of your functions and time taken to execute that function . Pricing varies upon memory allocation on the lambda function.
  • Amazon Elastic Block Storage (EBS) costs estimates includes volume storage and type, frequency of snapshots you take and data transfer from EBS.
  • Amazon S3 costs estimates includes storage class (S3-IA, S3-RRS or Glacier) , storage volume, GET , PUT and COPY requests and data transfer out from S3.
  • Amazon RDS costs estimates includes clock hours of server up time , Database engine , size & memory, Database purchase type (on-demand or RI),Storage type (provisioned or SSD),No of requests ,Deployment type (single A-Z or Multi AZ) and Data Transfer out.
  • Amazon Cloud Front cost estimate includes Traffic distribution across various geographic region, Number and type of HTTP/HTTPS requests and data transfer out from Cloud Front.