AWS pricing can feel a bit overwhelming at first, but it’s designed to be flexible and on a "pay-as-you-go" basis
AWS has several pricing models which you can choose from based on your business and infrastructure needs
Pricing models
On-Demand-Pay for compute or storage by the hour or second with no long-term commitment.
Savings Plans- Commit to consistent usage (measured in $/hour) for 1 or 3 years for up to 72% savings.
Reserved Instances (RIs)-Reserve 1 or 3 years capacity for EC2, RDS, etc. with significant discounts.
Spot Instances-Bid on unused EC2 capacity at reduced prices (can be up to 90% cheaper).
Free Tier-AWS offers a free tier for 12 months for new users and an always-free tier for certain services.
Key Pricing Factors
Compute
EC2 pricing is based on the instance type, region, OS, and pricing model (On-Demand, Reserved, Spot).
Lambda pricing is based on the number of requests and execution time.
Storage:
S3 pricing depends on storage class (Standard, Infrequent Access, Glacier), storage amount, PUT/GET requests, and data transfer.
Data Transfer:
Data transfer is usually free.
Data transfer out to the internet is charged per GB beyond the free tier.
Networking:
Services like AWS CloudFront (CDN) and Route 53 (DNS) have separate pricing models.
VPC peering and NAT Gateway usage are also chargeable.
Other Services:
Managed databases (RDS), container services (ECS/EKS), machine learning (SageMaker), and security services (WAF, Shield) all have individual pricing models.
- Pricing Calculator
- AWS Pricing Calculator
You can estimate costs based on your specific use case.
- Tips for Reducing AWS Costs
- Use Spot Instances for non-critical workloads. -Right-size your EC2 instances and leverage Savings Plans. -Use S3 lifecycle policies to move older data to Glacier. -Monitor costs with AWS Cost Explorer. -Set up billing alerts and budgets.
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