Introduction to AWS Pricing
Pay-as-you-go cloud computing platform
Flexible, cost-effective pricing for different services
Billing based on actual usage — no upfront commitments
AWS Pricing Principles
Pay-as-you-go – Pay only for what you use
Save when you commit – Use Reserved Instances or Savings Plans
Pay less by using more – Volume-based discounts
Key AWS Pricing Models
On-Demand
Reserved Instances
Savings Plans
Spot Instances
Free Tier
On-Demand Pricing
Pay by the hour or second
No upfront cost
Best for short-term, unpredictable workloads
Reserved Instances
Commit to 1 or 3 years
Significant discounts (up to 75%)
Best for steady-state workloads
Types: Standard & Convertible
Savings Plans
Flexible pricing model
Commit to a consistent usage (e.g., $/hr)
Covers EC2, Fargate, Lambda
Up to 72% savings over On-Demand
Spot Instances
Use unused EC2 capacity
Up to 90% discount
Ideal for fault-tolerant or flexible applications
AWS Free Tier
12-month free tier for new accounts
Always-free offers (e.g., Lambda, DynamoDB)
Good for learning & testing AWS services
*AWS Services & Pricing Units
*
EC2: Per second/hour
S3: Per GB stored + requests
Lambda: Requests + duration
RDS: Instance hours + storage
AWS Pricing Calculator
Tool to estimate costs
Customize based on region, usage, and services
*Cost Optimization Tips
*
Monitor with AWS Cost Explorer
Set budgets and alerts
Use Auto Scaling
Choose correct instance types
Leverage Free Tier and Spot Instances
*Conclusion
*
AWS offers flexible pricing to match every use case
Choosing the right model helps optimize costs
Regular cost monitoring is key
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