Billing & Pricing

1. Billing Principles / Overview

General billing concepts / ideas.

Capex vs Opex

  • Capex: Fixed upfront cost (static hosting)
  • Opex: Operational expenditure

4 Pricing Principles

  1. Pay as you go
  2. Pay for what you use
  3. Pay less as you use more
  4. Pay even less when you reserve capacity

5 Basic Pricing Policy

  1. Pay as you go
  2. Pay less when you reserve
  3. Pay even less per unit by using more
  4. Pay less when AWS grows
  5. Custom pricing

The 3 Primary Drivers Of Cost

  1. Compute
  2. Storage
  3. Data (Outbound)

The 4 Pricing Models

  1. On Demand - Pay for what you use, no commitment. Good for urgent requirements.
  2. Reserved - Reserved workloads for a given time, useful if you know your workload. Broken up into standard (you can't change the instance type), convertible (where you can change the class of your EC2 instances) and scheduled (within time windows, good for more sporadic workloads).
  3. Spot - Purchase spare capacity, up to market price. Works for flexible start and end times. You are not terminated for a partial hour if AWS disable an instance, you will be if you terminate it.
  4. Dedicated Hosts (for your use). Useful for regulatory requirements, and licensing needs.

What is free?

  • VPC is free
  • Elastic Beanstalk
  • CloudFormation
  • IAM
  • AutoScaling

2. What Determines Pricing?

You need to know the factors that affect pricing for the main services.

For EC2...

  • Server Time
  • Instance Type
  • Pricing Model
  • Number of Instances
  • Load Balancing
  • Detailed Monitoring (polling every 1 minute)
  • Elastic IP's are paid

For Lambda...

  1. Per request ($0.20 per million requests)
  2. Duration price
  3. Data transfer cost (such as data in/out of S3)

For EBS...

  • Volumes
  • Snapshots
  • Data Transfer

For S3...

  1. Storage Class (Glacier, etc)
  2. Storage (Amount of files)
  3. Requests ()
  4. Data Transfer (data in/out)
  5. Transfer Acceleration + Cross Region Replication (settings which you can turn on)

For Glacier...

  1. Storage
  2. Data Retrieval Time

For Snowball...

  • 50TB $200
  • 80TB $250
  • First 10 days free (after that $15 a day)

For RDS...

  • Time of server uptime
  • Instance Type
  • Number of instances
  • Storage (Provisioned / Additional)
  • Requests (and data transfer)

DynamoDB

  • Write / Read
  • Amount Of Data Stored In DynamoDB

3. Billing Services / Tools

The tools you can use to review / implement billing.

Budgets vs Cost Explorer

  • Budgets: Forecasts costs before they occur.
  • Cost Explorer: Costs after they've occurred.

Create a Billing alarm

  • Must be done in the us-east-1 region
  • Emails are sent via SNS topic
  • You need to create an email subscription to SNS also

Tags

  • Tags & Resource Groups
  • Can Create Resource Groups

4. AWS Organisations + Billing

How AWS Organisations can affect / help with billing...

Consolidated Billing

  • Used to consolidate billing across AWS accounts (Using AWS Organisations)
  • You have one paying account, so you get economies of scale (for using more)
  • Paying account cannot access other accounts (don't deploy into the paying account)
  • Billing alerts on a paying account include costs for all associated accounts
  • Billing alerts on individual accounts still work
  • MFA on root, and complex password on root

AWS Cost Calculators

  • Simple Monthly Calculator (Basic Cost Calculations)
    • Calculate basic monthly costs based on resources
  • Total Cost of Ownership Calculator
    • Cost of on premise vs on AWS

// TODO: 👷‍♀ https://awstcocalculator.com/ // TODO: 👷‍♀ Explore https://aws.amazon.com/calculator/calculator-faq/ // TODO: 👷‍♀ Experiemnt with these calculators

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