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Questions and Answers
What are the primary cost drivers for AWS services?
What are the primary cost drivers for AWS services?
- Compute, storage, and inbound data transfer
- Storage, inbound data transfer, and number of users
- Compute, number of users, and outbound data transfer
- Compute, storage, and outbound data transfer (correct)
AWS pricing requires long-term contracts for all services.
AWS pricing requires long-term contracts for all services.
False (B)
What type of AWS service allows you to save up to 75% compared to on-demand pricing by committing to use resources in advance?
What type of AWS service allows you to save up to 75% compared to on-demand pricing by committing to use resources in advance?
Reserved Instances
Businesses can save money on Amazon S3 due to its __________ volume-based discounts.
Businesses can save money on Amazon S3 due to its __________ volume-based discounts.
Match the following Reserved Instance types with their payment structures:
Match the following Reserved Instance types with their payment structures:
Since 2006, approximately how many times has AWS reduced its prices?
Since 2006, approximately how many times has AWS reduced its prices?
AWS offers custom pricing for all projects, regardless of volume or uniqueness.
AWS offers custom pricing for all projects, regardless of volume or uniqueness.
For how long does AWS offer a Free Tier to new customers?
For how long does AWS offer a Free Tier to new customers?
AWS ______ is a free service that creates a secure, isolated network in AWS.
AWS ______ is a free service that creates a secure, isolated network in AWS.
Match the following AWS free services with their primary function:
Match the following AWS free services with their primary function:
Which of the following is typically a characteristic of on-premises IT infrastructure?
Which of the following is typically a characteristic of on-premises IT infrastructure?
Cloud solutions are generally less flexible than on-premises solutions.
Cloud solutions are generally less flexible than on-premises solutions.
What does TCO stand for when comparing on-premises vs. cloud solutions?
What does TCO stand for when comparing on-premises vs. cloud solutions?
Unlike cloud costs, on-premises costs include both direct and ______ expenses that are harder to calculate.
Unlike cloud costs, on-premises costs include both direct and ______ expenses that are harder to calculate.
Match the following cost types with their respective environments:
Match the following cost types with their respective environments:
What was the approximate percentage of cost savings achieved by migrating from on-premises to AWS in the example provided?
What was the approximate percentage of cost savings achieved by migrating from on-premises to AWS in the example provided?
On-premises solutions allow you to pay only for what you use, similarly to AWS.
On-premises solutions allow you to pay only for what you use, similarly to AWS.
What tool does AWS offer to help estimate monthly AWS costs?
What tool does AWS offer to help estimate monthly AWS costs?
The AWS Pricing Calculator breaks down estimates into upfront and ______ costs.
The AWS Pricing Calculator breaks down estimates into upfront and ______ costs.
Match the following AWS Pricing Calculator categories with their descriptions:
Match the following AWS Pricing Calculator categories with their descriptions:
Which of the following is considered a 'soft benefit' of moving to the cloud?
Which of the following is considered a 'soft benefit' of moving to the cloud?
A TCO analysis provides a complete view of the financial benefits of cloud adoption.
A TCO analysis provides a complete view of the financial benefits of cloud adoption.
What free AWS service allows businesses to centrally manage multiple AWS accounts within an organization?
What free AWS service allows businesses to centrally manage multiple AWS accounts within an organization?
Within AWS Organizations, an ______ is a container for AWS accounts.
Within AWS Organizations, an ______ is a container for AWS accounts.
Match the following AWS Organizations components with their descriptions:
Match the following AWS Organizations components with their descriptions:
What type of policies are used in AWS Organizations to enforce permissions and manage access across all accounts?
What type of policies are used in AWS Organizations to enforce permissions and manage access across all accounts?
IAM policies control access across multiple AWS accounts.
IAM policies control access across multiple AWS accounts.
What is the minimum number of AWS accounts required to set up AWS Organizations?
What is the minimum number of AWS accounts required to set up AWS Organizations?
Names for accounts, OUs, roots, and policies in AWS Organizations must use Unicode characters and be ≤ ______ characters.
Names for accounts, OUs, roots, and policies in AWS Organizations must use Unicode characters and be ≤ ______ characters.
Match the following AWS Organizations limits with their values:
Match the following AWS Organizations limits with their values:
Which of the following interfaces can be used to manage AWS Organizations?
Which of the following interfaces can be used to manage AWS Organizations?
AWS Billing and Cost Management helps you track usage but not pay your AWS bill.
AWS Billing and Cost Management helps you track usage but not pay your AWS bill.
What does the AWS Billing Dashboard provide regarding spending for the current month?
What does the AWS Billing Dashboard provide regarding spending for the current month?
The AWS ______ allows you to visualize, analyze, and explore your AWS spending patterns over time.
The AWS ______ allows you to visualize, analyze, and explore your AWS spending patterns over time.
Match the following AWS Cost Management tools with their descriptions:
Match the following AWS Cost Management tools with their descriptions:
Which of the following does the AWS Bills page provide a breakdown of?
Which of the following does the AWS Bills page provide a breakdown of?
AWS Cost Explorer shows cost data for the past 6 months and forecasts for the next 6 months.
AWS Cost Explorer shows cost data for the past 6 months and forecasts for the next 6 months.
What service can you integrate with AWS Budgets to receive alerts when your actual or estimated costs exceed your budget?
What service can you integrate with AWS Budgets to receive alerts when your actual or estimated costs exceed your budget?
The AWS Cost and Usage Report allows you to publish billing reports to an ______ bucket.
The AWS Cost and Usage Report allows you to publish billing reports to an ______ bucket.
Match the following AWS Support Plans with their descriptions:
Match the following AWS Support Plans with their descriptions:
Which AWS support plan includes a Technical Account Manager (TAM) for expert guidance?
Which AWS support plan includes a Technical Account Manager (TAM) for expert guidance?
Flashcards
AWS Cost Drivers
AWS Cost Drivers
AWS costs are primarily based on compute (processing power), storage (saving data), and outbound data transfer (sending data out of AWS).
AWS Data Transfer Costs
AWS Data Transfer Costs
Inbound data transfer (bringing data into AWS) is usually free. Data transfer within the same AWS region is mostly free. Outbound data transfer (sending data out of AWS) is charged as AWS Data Transfer Out.
AWS Pricing Model
AWS Pricing Model
AWS pricing follows a pay-as-you-go model, meaning you only pay for what you use, with no long-term contracts.
Pay for what you use
Pay for what you use
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Pay less when you reserve
Pay less when you reserve
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Pay less when you use more
Pay less when you use more
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Pay even less as AWS grows
Pay even less as AWS grows
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Reserved Instances (RIs)
Reserved Instances (RIs)
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All Upfront (AURI) RI
All Upfront (AURI) RI
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Partial Upfront (PURI) RI
Partial Upfront (PURI) RI
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No Upfront (NURI) RI
No Upfront (NURI) RI
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Amazon S3 Tiered Pricing
Amazon S3 Tiered Pricing
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AWS Custom Pricing
AWS Custom Pricing
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AWS Free Tier
AWS Free Tier
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Amazon VPC
Amazon VPC
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IAM
IAM
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Consolidated Billing
Consolidated Billing
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AWS Elastic Beanstalk
AWS Elastic Beanstalk
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AWS CloudFormation
AWS CloudFormation
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Automatic Scaling
Automatic Scaling
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On-Premises (Traditional IT)
On-Premises (Traditional IT)
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Cloud (AWS)
Cloud (AWS)
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Total Cost of Ownership (TCO)
Total Cost of Ownership (TCO)
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AWS Pricing Calculator
AWS Pricing Calculator
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Total for First 12 Months
Total for First 12 Months
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Total Upfront
Total Upfront
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Total Monthly
Total Monthly
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Hard Benefits (Cloud)
Hard Benefits (Cloud)
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Soft Benefits (Cloud)
Soft Benefits (Cloud)
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AWS Organizations
AWS Organizations
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Root (AWS Organizations)
Root (AWS Organizations)
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Organizational Unit (OU)
Organizational Unit (OU)
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Accounts (AWS Organizations)
Accounts (AWS Organizations)
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Policies (AWS Organizations)
Policies (AWS Organizations)
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IAM Policies
IAM Policies
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Service Control Policies (SCPs)
Service Control Policies (SCPs)
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AWS Billing and Cost Management
AWS Billing and Cost Management
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AWS Billing Dashboard
AWS Billing Dashboard
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AWS Bills
AWS Bills
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AWS Cost Explorer
AWS Cost Explorer
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AWS Budgets
AWS Budgets
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Study Notes
AWS Costs
- AWS costs are primarily determined by compute, storage, and outbound data transfer.
- Inbound data transfer is generally free.
- Data transfer within the same AWS region is typically free, but exceptions exist.
AWS Pricing Model
- AWS follows a pay-as-you-go model, charging only for actual usage.
- No long-term contracts are required.
- Discounts if commit to using resources in advance.
- Bulk usage results in lower costs.
- AWS often lowers prices over time.
Cost Savings with AWS
- AWS eliminates the high costs of building and maintaining data centers.
- On-demand AWS services facilitate scaling up or down as needed.
Reserved Instances (RIs)
- Reserved Instances offer up to 75% savings compared to on-demand pricing for services like Amazon EC2 and RDS.
- All Upfront (AURI) RIs provide the largest discount.
- Partial Upfront (PURI) RIs offer a lower discount.
- No Upfront (NURI) RIs have the smallest discount.
Volume-Based Discounts
- Volume-based discounts lower the per-unit cost with higher usage.
- Amazon S3 pricing is tiered, reducing per-GB costs with increased usage.
Continuous Cost Reduction
- AWS continuously works to cut costs through efficiency improvements.
- AWS has reduced prices 75 times since 2006 (as of 2019).
Custom Pricing and Free Tier
- Custom pricing is available for high-volume or unique projects.
- The AWS Free Tier allows new customers to try cloud services for up to 1 year.
Free Services
- AWS offers free services like Amazon VPC, IAM, Consolidated Billing, AWS Elastic Beanstalk, AWS CloudFormation, Automatic Scaling, and AWS OpsWorks.
- While these services are free, the AWS resources they provision may incur charges.
On-Premises vs. Cloud
- On-premises solutions require high upfront costs and ongoing maintenance.
- Cloud solutions offer pay-as-you-go pricing and easy scalability.
- Hybrid models can provide a mix of both.
Total Cost of Ownership (TCO)
- TCO includes all direct and indirect costs of owning a service.
- On-premises TCO includes hardware, facilities, licenses, and staff costs.
- Cloud TCO is based on pay-as-you-go pricing with no hardware or maintenance costs.
Cost Comparison
- On-premises costs include server hardware/software, power, storage, and IT operations.
- Cloud costs are upfront and transparent.
- Cloud offers predictable pricing, unlike the harder-to-calculate direct and indirect expenses of on-premises solutions.
Cost Savings Example
- Moving to AWS can result in significant savings, such as a 96% reduction amounting to $159,913 over 3 years.
AWS Pricing Calculator
- The AWS Pricing Calculator estimates monthly AWS costs and identifies cost reduction opportunities.
AWS Pricing Calculator Categories
- The estimates are broken down into the total for the first 12 months, the total upfront cost, and the total monthly cost.
Hard and Soft Benefits
- Cloud Total Cost of Ownership (TCO) shows the direct financial impact, it may only provide a limited view of the full financial benefit of cloud adoption.
- Hard benefits include reduced spending on compute, storage, networking, and security.
- Soft benefits include increased developer productivity and improved customer satisfaction
AWS Organizations: Centralized Account Management
- AWS Organizations manages multiple AWS accounts within an organization and is a free service.
AWS Organizations: Key Benefits
- Centrally managed access and controlled service access.
- Automated account management and consolidated billing.
AWS Organizations: Key Terminology & Structure
- Root: Top-level container for all accounts and organizational units (OUs).
- Organizational Unit (OU): A container for AWS accounts within the root.
- Policies flow down the hierarchy, and an OU inherits the policies.
Benefits of AWS Organizations
- Centralized control using Service Control Policies (SCPs).
- Simplified billing with a single bill for all accounts.
AWS Organizations vs. IAM Policies
- IAM Policies control access within a single AWS account.
- Service Control Policies (SCPs) control access across multiple AWS accounts.
Setting Up AWS Organizations: Step-by-Step
- Two AWS accounts with admin access are needed and use the current AWS account as the primary account.
- Create Organizational Units (OUs) and apply restrictions to limit actions users and roles can perform.
AWS Organizations Naming & Limits
- Names for accounts, OUs, roots, and policies must use Unicode characters and be ≤ 250 characters.
- The number of accounts varies
Managing AWS Organizations
- AWS Organizations can be managed using the AWS Management Console.
- AWS CLI (Command Line Interface), AWS SDKs (Software Development Kits) and AWS HTTPS Query API can also be used.
AWS Billing and Cost Management
- AWS Billing and Cost Management helps pay AWS bills and track usage.
- Ability to customize reports and analyze data trends
AWS Billing Dashboard
- The AWS Billing Dashboard provides a Spend Summary and Month-to-Date Spend by Service.
Cost Management Tools
- AWS Bills provides a detailed breakdown of monthly AWS charges.
- AWS Cost Explorer visualizes your AWS spending patterns over time.
- AWS Budgets enables you to set custom cost or usage budgets.
- AWS Cost and Usage Reports offer comprehensive reports on AWS costs and usage.
AWS Bills
- The AWS Bills page provides a detailed breakdown of monthly costs, AWS Region and linked account.
AWS Cost Explorer
- Access to cost data for the past 13 months and helps to forecast costs for the next 3 months to identify spending patterns, cost issues, and top AWS services.
AWS Budgets
- Create custom budgets based on cost or usage at monthly, quarterly, or yearly levels.
- Can integrate with the Cost Explorer to visualize costs and forecasting estimated costs.
- Can set alerts when exceeding your budget.
AWS Cost and Usage Report
- Provides a detailed breakdown of AWS costs and usage and publishes reports to an S3 bucket.
AWS Support
- AWS Support offers assistance regardless of experience with AWS adoption
- Varies from basic customer needs, from experimentation to production and business-critical usage.
- Offers tools and expertise tailored to current or future use cases
AWS Support Plans
- Basic Support Plan includes 24/7 customer service, documentation, and Trusted Advisor checks.
- Developer Support Plan is for testing and early development on AWS.
- Business Support Plan is for production workloads requiring availability, scalability, and security.
- Enterprise Support Plan is for mission-critical workloads with proactive management and a Technical Account Manager (TAM).
AWS Support Service Levels
- Response times for support cases vary by severity and based on your AWS support plan.
- Basic Support Plan doesn’t offer case support.
- The Enterprise Support Plan includes a Technical Account Manager if you need proactive management.
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