AWS Pricing Benefits & Discounts

1) Pay as you go / On-Demand

Pay for usage. Pay only as long as you need it.

• No large upfront expenses.
• No long term contracts.

2) Pay less when you reserve

We can reserve some services (EC2, RDS etc…) and purchase them if we need for long term.

75% of on demand cost can be saved.

3 payment modes:

• All upfront – Largest discount
• Partial upfront – lesser discount
• No upfront – smallest discount

3) Pay less by using more

We can get discount if we use more quantity of certain services like Amazon S3. If we use the S3 storage above the threshold set by AWS, then we get discount and bill amount will be reduced.

4) Pay less when AWS grows.

Over the years, AWS continuously kept decreasing the prices for their services offered due to huge increase in the customers for AWS.

All the aggregated users of AWS contribute to the growth of AWS and AWS will decrease the pricings. This is the benefit from massive economies of scale. (This point is important for AWS Cloud Practitioner Certification CLF – C01 exam)