23 Questions
What is the fundamental principle underlying AWS pricing?
Pay for what you use, with no upfront expenses
What is the benefit of using AWS services instead of building on-premises infrastructure?
Lowering variable costs and redirecting resources to innovation
What is the pricing model used by AWS for its cloud computing services?
Utility-style pricing with pay-as-you-go
What is the benefit of using AWS services with no upfront expenses?
Quickly adapting to changing business needs and redirecting resources
What is the advantage of AWS pricing over traditional on-premises infrastructure?
No upfront expenses and pay-as-you-go pricing
What is the characteristic of AWS services that allows you to quickly adapt to changing business needs?
On-demand availability with no upfront expenses
What is the pricing principle that allows you to pay less when you use more?
Pay less when you use more
What is the primary objective of using the AWS Pricing Calculator in this activity?
To develop a cost estimate for a project
What is a potential hard benefit of using cloud services as mentioned in the text?
Reduced spending on compute, storage, networking, and security
What is an example of a soft benefit of using cloud services according to the text?
Reuse of service and applications
What is the recommended group size for this activity?
Four or five
What is NOT a potential benefit of using cloud services according to the text?
Increased hardware purchases
What is the purpose of using the AWS Pricing Calculator in the activity?
To calculate the cost of a project
What is a potential soft benefit of using cloud services according to the text?
Increased global reach
What is the ultimate goal of using the AWS Pricing Calculator in this activity?
To develop a cost estimate and report back to the class
What is the basis for charging compute resources in AWS?
Per hour or second, depending on the instance type
Which of the following is not a fundamental driver of cost with AWS?
Inbound data transfer
How is outbound data transfer charged in AWS?
Per GB, aggregated across services
What appears on the monthly statement as a result of outbound data transfer?
AWS Data Transfer Out
What is the pricing model for storage in AWS?
Per GB
Which of the following is a characteristic of AWS pricing models?
Utility-style pricing, where you pay for what you use
What is the exception to the free inbound data transfer rule in AWS?
Some exceptions apply
How do the characteristics of cost vary in AWS?
They vary depending on the instance type and pricing model
Study Notes
AWS Pricing Philosophy
- AWS pricing philosophy is to pay for what you use, with no long-term contracts and no upfront expenses.
- You only pay for the services you consume, with the flexibility to start or stop using a product at any time.
Utility-Style Pricing Model
- Pay for what you use: pay only for the services that you consume.
- Pay less when you reserve: discounted rates for reserved instances.
- Pay less when you use more: discounted rates for bulk usage.
- Pay even less as AWS grows: economies of scale benefit customers.
How AWS Pricing Works
- Compute: charged per hour/second, varies by instance type (Linux only).
- Storage: charged typically per GB.
- Data transfer: outbound is aggregated and charged per GB, inbound is free (with some exceptions).
Benefits of AWS Pricing
- Hard benefits:
- Reduced spending on compute, storage, networking, security, and personnel.
- Reductions in hardware and software purchases (capex).
- Reductions in operational costs, backup, and disaster recovery.
- Soft benefits:
- Increased developer productivity.
- Improved customer satisfaction.
- Agile business processes that can quickly respond to new and emerging opportunities.
- Increase in global reach.
Additional Resources
- AWS Pricing Overview: https://d0.awsstatic.com/whitepapers/aws_pricing_overview.pdf
This quiz is about the pricing philosophy of Amazon Web Services (AWS), which allows users to pay for what they use, without long-term contracts.
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