FD Insights Issue 12 | Page 37

• AWS Identity and Access Management (IAM): AWS IAM controls your users’ access to AWS services and resources. • Auto Scaling: Auto Scaling automatically adds or removes Amazon EC2 instances according to conditions you define. With Auto Scaling, the number of Amazon EC2 instances you’re using increases seamlessly during demand spikes to maintain performance, and decreases automatically during demand lulls to minimize costs. • AWS OpsWorks: AWS OpsWorks is an application management service that makes it easy to deploy and operate applications of all shapes and sizes. • Moreover, you can consolidate all your accounts using Consolidated Billing and get tiering benefits. • Custom pricing. What if none of our pricing models work for your project? Custom pricing is available for high volume projects with unique requirements. For assistance, contact us to speak with a sales representative. Fundamental Pricing Characteristics There are three fundamental characteristics you pay for with AWS: compute, storage, and data transfer out. These characteristics vary slightly depending on the AWS product you are using. However, fundamentally these are the core characteristics that have the greatest impact on cost. Free Inbound Data Transfer There is no charge for inbound data transfer across all Amazon Web Services in all regions. There are no outbound data transfer charges between Amazon Web Services within the same region. Although you are charged for data transfer out, there is no charge for inbound data transfer or for data transfer between other Amazon Web Services within the same region. The outbound data transfer is aggregated across Amazon EC2, Amazon S3, Amazon RDS, Amazon SimpleDB, Amazon SQS, Amazon SNS, and Amazon VPC and then charged at the outbound data transfer rate. This charge appears on the monthly statement as AWS Data Transfer Out. The rest of this section breaks down the pricing characteristics for four commonly used AWS products: Amazon Elastic Compute Cloud (Amazon EC2), Amazon Simple Storage Service (S3), Amazon Elastic Block Store (EBS), Amazon Relational Database Service (Amazon RDS), and Amazon CloudFront. Pricing is available for each AWS product and its specific pricing characteristics at http://aws.amazon.com/pricing/. Amazon Elastic Compute Cloud (Amazon EC2) Amazon Elastic Compute Cloud (Amazon EC2) is a web service that provides resizable compute capacity in the cloud. Amazon EC2’s simple web service interface allows you to obtain and configure capacity with minimal friction. It provides complete control of your computing resources on Amazon’s proven computing environment. Amazon EC2 changes the economics of computing by charging you only for capacity that you actually use. When you begin to estimate the cost of using Amazon EC2, you need to consider the following: • Clock Hours of Server Time -­Resources incur charges when they are running. For example, from the time Amazon EC2 instances are launched until they are terminated, or from the time Elastic IPs are allocated until the time they are de-­allocated. • Machine Configuration - Consider the physical capacity of the Amazon EC2 instance you choose. Instance pricing varies with the AWS region, OS, number of cores, and memory. • Machine Purchase Type - With On-­Demand Instances, you pay for compute capacity by the hour with no required minimum commitments. Reserved Instances give you the option to make a low, one-­time payment for each instance you want to reserve and in turn receive a significant discount on the hourly usage charge for that instance. With Spot Instances, you can bid for unused Amazon EC2 capacity. For more information how to further save costs using Reserved Instances and Spot Instances, see How to Further Save Costs. • Number of Instances -­You can provision multiple instances of your Amazon EC2 and Amazon EBS resources to handle peak loads. • Load Balancing -­An Elastic Load Balancer can be used to distribute traffic among Amazon EC2 instances. The number of hours the Elastic Load Balancer runs and the amount of data it processes contribute to the monthly cost. • Detailed Monitoring - You can use Amazon C