Section 1: Fundamentals of pricing
AWS pricing model
Three fundamental drivers of cost with AWS:
- Compute
- Charged per hour/second
- Varies by instance type
- Storage
- Charged typically per GB
- Data transfer
- Outbound is aggregated and charged
- Inbound has no charge (with some exceptions)
- Charged typically per GB
How do you pay for AWS ?
Pay for what you use
Pay only for the servuces that you consume, with no large upfront expenses
Pay less by using more
Realize volume-based discounts:
-
Savings as usage increases
-
Tiered pricing for services like Amazon Simple Storage Service (Amazon S3), Amazon Elastic Book Store (Amazon EBS) or Amazon Elastic File System (Amazon EFS) → the more you use, the less you pay per GB
-
Multiple storage service deliver lower storage costs based on needs
Pay even less as AWS Grows
- AWS focuses on lowering cost of doing business
- This pratice results in AWS passing savings from economies of scale to you
- Since 2006, AWS has lowered pricing 75 times (as of Septembre 2019)
- Future higher-performing resources replace current resources for no extra charge
Custom pricing
- Meet varying needs through custom pricing
- Available for high-colume projects with unique requirements
AWS Free Tier
Enables you to gain free hands-on experience with the AWS platform, products and services. Free for 1 year for new customers
Services with no charge
On-premises versus cloud
What is Total Cost of Ownership (TCO) ?
Total Cost of Ownership (TCO) is the financial estimate to help identify direct and indirect costs of a system.
Why use TCO ?
- To compare the costs of running an entire infrastructure environmnet of specific workload on-premises versus on AWS
- To budget and build the business case for moving to the cloud
TCO Consideration
On-premises versus all-in-cloud
You cloud cave up to
96 percent
a year by moving your infratstructure to AWS. Your 3-year total savings would be
$159,913
AWS Pricing Calculator
Use the AWS Pricing Calculator to:
- Estimate monthly costs
- Identify opportunities to reducse monthly costs
- 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 name groups of services
Reading an estimate
Your estimate is broken into:
- first 12 months total
- total upfront
- total monthly
Additional benefit considerations
-
Cloud Total Cost of Ownership: what will be spent to run the solution
-
Return on Investement analysis (ROI): determine the value generated while considering savings → soft and hard benefits
→
| Hard benefits | Soft benefits |
|---|---|
| Reduced spending on compute, storage, networking, security | Reuses of service and applications that enabl you to define (and redefine solutions) by using the same cloud service |
| Reductions in hardware and softare purchases (capex) | Increased developer productivity |
| Reductions in operational costs, backup, and disaster recovery | Improved customer satisfaction |
| Reduction in operations personnel | Agile business processes that can quickly respond to new and emerging opportunities |
| Increase in global reach |
Case study: Delaware North
Background:
- Growing global company with over 200 locations
- 500 million customers: $3 billion USD annual revenue
Challenge:
- Meet demand to rapidly deploy new solutions
- Constantly upgrade aging equipment
Criteria:
- Have a broad solution to handle all workloads
- Be able to modify processes to improve efficiency and lower costs
- Eliminate busy work (such as patching software)
- Achieve a positive return on investment (ROI)
Solution:
- Move their on-premises data center to AWS
- Eliminated 205 servers (90%)
- Moved nearly all aplications to AWS
- Used 3-year Amazon ECE2 Reserved Instances
Cost comparison
Results
Section 3: Billing
AWS Organizations: account management service to consolidate multiple AWS accounts
- a branch can have only one parent
Key features and benefits
- Policy-base account management
- Group based account management
- APIs that automate account management
- Consolidate billing
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)
Organization setup
Accessing AWS Organizations
- AWS Management Console
- AWS Command Line Interface (AWS CLI) tools
- Software development kits (SDKs)
- HTTPS Query application programming interfaces (API)
Section 4: AWS Billing and Cost Management
AWS Billing Dashboard
Spend summary: how much you spent last monthMonth-to-Date spend by service: services most used
Tools
- AWS Budgets
- AWS Cost and Usage Report
- AWS Cost Explorer
Monthly bills
Cost Explorer
Forecast and track costs
Cost and usage reporting
Section 5: Technical Support Models
AWS Support
- Provide unique combination of tools and expertise:
- AWS Support
- AWS Support Plans
- Support is provided for:
- Experimenting with AWS
- Production use of AWS
- Business-critical use of AWS
- Proactive guidance
- Technical Account Manager (TAM)
- Best practices:
- AWS Trusted Advisor
- Account assistance
- AWS Support Concierge
Support plans
AWS Support offers four support plans:
- Basic Support: Resource Center access, Service Health Dashboard, product FAQs, discussion forums, and support for health checks
- Developper Support: Support for early development on AWS
- Business Support: Customers that run production workloads
- Entreprise Support: Customers that run business and mission-critical workloads