AWS Pricing
There are three fundamental drivers of cost with AWS:
- Compute
- Storage
- Outbound data transfer.
- AWS offers pay-as-you-go for pricing.

- For certain services like Amazon EC2 and Amazon RDS, you can invest in reserved capacity. With Reserved Instances, you can save up to 75% over equivalent on-demand capacity. When you buy Reserved Instances, the larger the upfront payment, the greater the discount.
- With the All Upfront option, you pay for the entire Reserved Instance term with one upfront payment. This option provides you with the largest discount compared to On-Demand instance pricing.
- With the Partial Upfront option, you make a low upfront payment and are then charged a discounted hourly rate for the instance for the duration of the Reserved Instance term.
- The No Upfront option does not require any upfront payment and provides a discounted hourly rate for the duration of the term.
- There are also volume based discounts for services such as Amazon S3.
- For new accounts, AWS Free Tier is available.
- Free Tier offers limited usage of AWS products at no charge for 12 months since the account was created. More details at https://aws.amazon.com/free/.
- You can estimate your monthly AWS bill using AWS Simple Monthly Calculator.
- The AWS TCO calculator
- gives you the option to evaluate the savings from using AWS
- compares costs and savings against on-premises and co-location environments
- matches your current infrastructure to the most cost effective AWS offering
Sources:
https://d1.awsstatic.com/whitepapers/aws_pricing_overview.pdf\
https://aws.amazon.com/pricing/
https://aws.amazon.com/ec2/pricing/reserved-instances/pricing/
https://d1.awsstatic.com/whitepapers/aws_pricing_overview.pdf\
https://aws.amazon.com/pricing/
https://aws.amazon.com/ec2/pricing/reserved-instances/pricing/
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