AWS Pricing Models

Name: AWS Pricing Models
Author: Demetria Crawford

Learn how to optimize EC2 instance cost with AWS pricing models

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Course: On-Demand

Hello, my name is Demetria Crawford. In this lesson, we will review AWS pricing models. In order to understand AWS pricing models, we have to understand how do you pay for AWS services. We know that it is pay-as-you-go, that you save when you commit, you pay less by using more. These we know. These things we understand. However, AWS provides multiple pricing models which allow you to pay for your compute resources in the most cost efficient way that suits your organization. There are three general models we will review for EC2 instances. That is on-demand instances, reserve instances and spot instances. We're going to go into details in each of these in future lessons, but for now, in order to understand the reason for selecting one model over the other, you have to know the purpose and use of the EC2 instances prior to creating them. For example, if you are a developer and you only need the EC2 instances for the purpose of testing, you may choose an instance that is cheaper and has minimum requirements for availability. In other words, if the instance becomes unavailable, it will bring no harm. However, if the purpose of the instance is to store a critical database, we have a need for high availability. Therefore, we would choose a different type of pricing model based on our need. Finally, we may have a contract which requires an EC2 instance for three years. In this example, we can select an option which provides cost savings due to the length of time we plan to maintain the EC2 instance. As you can see, these are three different needs, and yes, we can use pay-as-you-go, and we can save money when we commit to a specific contract for the EC2 instances, but you have to have an understanding of the specific models for those. So, like I said, each of those three are completely different. We can select an option which provides cost savings due to the length of time or for the use of those specific instances. Each of these examples will use a different model. AWS pricing model determines the cost for each EC2 instance type based on the length of time, availability and payment types. We're gonna go deeper in depth for each of those three pricing models in the next lessons. Stay tuned for the next lesson where we will review the on-demand instance pricing. Thanks for watching.

Beginner Provider : Demetria Crawford 4 Lessons · 18m in Arabic, German, English, Spanish, French, Portuguese, Chinese

Course Description

Organizations have various purposes for each EC2 instance created. Some may be critical to the organization, while others are used for test-cases. Each scenario has options that could minimize the cost associated with the use of EC2 instances. Time also plays an important role in selecting the right pricing model as committing to reserve instances can provide up a 75% discount.

In this course, you will compare the various AWS pricing models. We’ll explore On-Demand Instances, Reserved Instance, and Spot Instances, along with scenarios to help identify the best use-case for each model. The pricing models on AWS allow you to pay for your compute resources in the most cost-efficient way that best suits your organization.

What You'll Learn

Describe the various AWS pricing models for EC2 instances
Explain the benefits of On-Demand Instances and when to use them
Explain the benefits of Reserved Instances, including the discount for committing to reserve instances
Explain the benefits of Spot Instances
Compare On-Demand, Reserved, and Spot Instance pricing to identify the best use case for each
Select the pricing model that pays for compute resources in the most cost-efficient way for an organization

Key Takeaways

Organizations create EC2 instances for different purposes, ranging from business-critical workloads to test cases, and each scenario has options to minimize cost.
Time is an important factor in choosing a pricing model, since committing to reserve instances can provide up to a 75% discount.
AWS offers On-Demand Instances, Reserved Instances, and Spot Instances, each suited to different use cases.
AWS pricing models let you pay for compute resources in the most cost-efficient way that best suits your organization.

Frequently Asked Questions

What does this course cover?

The course compares the various AWS pricing models, exploring On-Demand Instances, Reserved Instances, and Spot Instances, along with scenarios to help identify the best use case for each model.

What will I be able to do after taking this course?

You will be able to describe AWS pricing models and explain the benefits of On-Demand Instances, Reserved Instances, and Spot Instances.

Why does timing matter when choosing an AWS pricing model?

Time plays an important role in selecting the right pricing model because committing to reserve instances can provide up to a 75% discount.

What lessons are included in this course?

The course includes an AWS Pricing Models Overview, On-Demand Instance Pricing, Reserved Instance Pricing, and Spot Instance Pricing.

What skills does this course help build?

It covers skills including Amazon Elastic Compute Cloud, AWS Cost Management, AWS SDK, Pricing Systems, and supports preparation related to the AWS Certified Cloud Practitioner and AWS Certified Machine Learning Specialty.