AWS Cloud Practitioner: How AWS Pricing Works Whitepaper

In this short series, I outline the notes that I took while preparing for the AWS Cloud Practitioner exam.

These are my personal notes that I have made while working through the A Cloud Guru exam practitioner course. They are in no way official notes from AWS.

I would advise you that if you do use my notes to help you revise for this exam, that you use them as a supplement to the most recent information in the White PapersExam Guide and go over your knowledge with practice exam papers.

Previous notes within this blog series:

How AWS Pricing Works Whitepaper

Must read whitepaper before the exam!

Basic Pricing Policies

  • Pay as you go
  • Pay less when you reserve
  • Pay even less per unit by using more
  • Pay even less as AWS grows
  • Custom pricing

Pricing Policies

  • Understand The Fundamentals Of Pricing
  • Start early with cost optimization
  • Maximize the power of flexibility
  • Use the right pricing model for the job

Understand The Fundamentals Of Pricing

  • Three fundamental drivers of cost with AWS:
    • Compute
    • Storage
    • And Data Outbound

Start early with cost optimization

  • Put cost controls in place before your environment grows
  • Managing cost effectively from the start ensures that managing cloud investments doesn’t become an obstruction as you grow and scale

Maximize the power of flexibility

  • AWS services are priced independently and transparently
  • By using PAYG, it allows you to just focus on your environment
  • Don’t pay for them when they’re not running

Use the right pricing model for the job

  • AWS offers several pricing models depending on product. These include:
    • On Demand
    • Dedicated Instances
    • Spot Instances
    • Reservations

Free Services

Free usage tier is available for new AWS users to practice using selected services for up to one year. The following services are free:

  • Amazon VPC (a virtual data center in the cloud)
  • Elastic Beanstalk (but the resources provisioned aren’t free)
  • CloudFormation (but the resources provisioned aren’t free)
  • Identity Access Management (IAM))
  • Auto Scaling
  • Opsworks (but the resources provisioned aren’t free)
  • Consolidated Billing

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