Cloud Pricing & Billing

2. EC2 Pricing Types

   On-Demand: no commitment, highest price. Reserved: 1 or 3 year commitment, up to 72% savings. Spot: unused capacity, up to 90% savings but can be interrupted. Dedicated: physical host.

3. AWS Free Tier

   3 types: Always Free (Lambda 1M requests/month, DynamoDB 25GB), 12 Months Free (EC2 750hrs t2.micro, S3 5GB), Trials (short-term free trials for specific services).

4. Total Cost of Ownership (TCO)

   Compare full cost of on-premises vs cloud. Includes hardware, data center, power, cooling, staff, maintenance. AWS typically reduces TCO significantly vs on-premises.

5. AWS Savings Plans

   Flexible pricing model. Commit to consistent usage ($/hour) for 1 or 3 years. Compute Savings Plans: any EC2, Fargate, Lambda. EC2 Instance Savings Plans: specific instance family.

6. AWS Cost Explorer

   Visualize and analyze AWS costs and usage. View trends, identify cost drivers. Forecast future costs. Free to use. Rightsizing recommendations.

7. AWS Budgets

   Set custom cost and usage budgets. Alert via email/SNS when thresholds breached. Budget types: cost, usage, reservation, Savings Plans. Proactive cost control.

8. Capital vs Operational Expense

   CapEx: upfront investment in physical infrastructure (on-premises servers). OpEx: ongoing operational costs (cloud services). Cloud converts CapEx to OpEx — pay as you go.

9. S3 Storage Classes

   Standard: frequent access. Intelligent-Tiering: auto-moves data. Standard-IA: infrequent access. One Zone-IA: lower cost, single AZ. Glacier Instant/Flexible/Deep Archive: archival.

10. Data Transfer Costs

    Ingress (into AWS): free. Between AZs in same region: small charge. Between regions: higher charge. To internet: charged per GB. CloudFront reduces egress costs.

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