FD Insights Issue 12 | Page 36

How AWS Pricing Works Confused about how AWS pricing works? Use this straightforward guide to clear things up. Introduction A WS offers a range of cloud computing services. For each service, you pay for exactly the amount of resources you actually need. This utility-style pricing model is explained below: • Pay as you go. No minimum commitments or long-­ term contracts required. You replace your upfront capital expense with low variable cost and pay only for what you use. There is no need to pay upfront for excess capacity or get penalized for under-­planning. For compute resources, you pay on an hourly basis from the time you launch a resource until the time you terminate it. For data storage and transfer, you pay on a per gigabyte basis. We charge based on the underlying infrastructure and services that you consume. You can turn off your cloud resources and stop paying for them when you don’t need them. • Pay less when you reserve. For certain products, you can invest in reserved capac