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AWS Pricing Overview PDF

The document discusses how Amazon Web Services (AWS) pricing works. It notes that AWS uses a utility-style pricing model where customers pay for only the resources they use, with no long-term commitments. Pricing varies by service, but common characteristics include pay-as-you-go hourly pricing for compute and data storage, tiered pricing where more usage leads to lower per-unit costs, and reserved capacity that provides significant discounts. The document provides examples to help customers estimate costs for their specific projects using AWS services.

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0% found this document useful (0 votes)
465 views15 pages

AWS Pricing Overview PDF

The document discusses how Amazon Web Services (AWS) pricing works. It notes that AWS uses a utility-style pricing model where customers pay for only the resources they use, with no long-term commitments. Pricing varies by service, but common characteristics include pay-as-you-go hourly pricing for compute and data storage, tiered pricing where more usage leads to lower per-unit costs, and reserved capacity that provides significant discounts. The document provides examples to help customers estimate costs for their specific projects using AWS services.

Uploaded by

Sano Sano R
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 15

Amazon

Web Services How AWS Pricing Works

July 2014

How AWS Pricing Works


July 2014


(Please consult http://aws.amazon.com/whitepapers/ for the latest version of this paper)


Page 1 of 15

Amazon Web Services How AWS Pricing Works

July 2014

Table of Contents
Table of Contents .................................................................................................................................................................. 2
Abstract ................................................................................................................................................................................. 3
Introduction ........................................................................................................................................................................... 3
Fundamental Pricing Characteristics ..................................................................................................................................... 4
Amazon Elastic Compute Cloud (Amazon EC2) ................................................................................................................. 5
Amazon Simple Storage Service (Amazon S3) ................................................................................................................... 6
Amazon Elastic Block Store (Amazon EBS) ......................................................................................................................... 6
Amazon Relational Database Service (Amazon RDS) ......................................................................................................... 7
Amazon CloudFront ........................................................................................................................................................... 7
How to Further Save Costs .................................................................................................................................................... 8
Conclusion ........................................................................................................................................................................... 10
Resources ............................................................................................................................................................................ 11
Cost Calculation Example .................................................................................................................................................... 12


Page 2 of 15

Amazon Web Services How AWS Pricing Works

July 2014

Abstract
While the number and types of services offered by AWS has increased dramatically, our philosophy on pricing has not
changed: at the end of each month, you pay only for what you use, and you can start or stop using a product at any
time. No long-term contracts are required.
Pricing information for each service on our website is available at http://aws.amazon.com/pricing/. Our strategy of
pricing each service independently gives you tremendous flexibility to choose the services you need for each project and
to pay only for what you use.
This whitepaper will help you understand how to effectively estimate the costs of running your specific project on AWS.
We provide several examples that leverage the AWS Simple Monthly Calculator. For each example, this paper discusses
its architecture, example usage of each service, cost breakdown for each service, and the total estimated monthly
charge.

Introduction
AWS offers a range of cloud computing services. For each service, you
pay for exactly the amount of resources you actually need. This utility-
style pricing model is explained below:

AWS Free Tier

Pay as you go. No minimum commitments or long-term


contracts required. You replace your upfront capital expense
with low variable cost and pay only for what you use. There is no
need to pay upfront for excess capacity or get penalized for
under-planning. For compute resources, you pay on an hourly
basis from the time you launch a resource until the time you
terminate it. For data storage and transfer, you pay on a per
gigabyte basis. We charge based on the underlying infrastructure
and services that you consume. You can turn off your cloud
resources and stop paying for them when you dont need them.

Pay less when you reserve. For certain products, you can invest
in reserved capacity. In that case, you pay a low upfront fee and
get a significantly discounted hourly rate, which results in overall
savings up to 60% (depending on the type of instance you
reserve) over equivalent On-Demand capacity.

Pay even less per unit by using more. You save more as you
grow bigger. For storage and data transfer, pricing is tiered. The
more you use, the less you pay per gigabyte. For compute, you get volume discounts up to 10% when you
reserve more.

Pay even less as AWS grows. Most importantly, we are constantly focused on reducing our data center
hardware costs, improving our operational efficiencies, lowering our power consumption, and generally
lowering the cost of doing business. These optimizations and AWSs substantial and growing economies of scale

Page 3 of 15

To help new AWS customers


get started in the cloud, AWS
offers a free tier. If youre a
new AWS customer, you can
run a free Amazon EC2 Micro
Instance for a year while also
leveraging the free tier for
select portions of Amazon S3,
Amazon Elastic Block Store,
Amazon Elastic Load
Balancing, AWS data transfer
and other AWS services. For
more information, go to
http://aws.amazon.com/free

Amazon Web Services How AWS Pricing Works

July 2014

result in passing savings back to you in the form of lower pricing. Since 2006, AWS has consistently lowered
prices (45 price drops as of Aug. 1, 2014). To see the latest pricing visit the AWS pricing page

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.

AWS also offers a variety of services for no additional charge:

Amazon VPC: Amazon Virtual Private Cloud (Amazon VPC) lets you provision a logically isolated section of the
Amazon Web Services (AWS) Cloud where you can launch AWS resources in a virtual network that you define.

AWS Elastic Beanstalk: AWS Elastic Beanstalk is an even easier way for you to quickly deploy and manage
applications in the AWS cloud.

AWS CloudFormation: AWS CloudFormation gives developers and systems administrators an easy way to create
a collection of related AWS resources and provision them in an orderly and predictable fashion.

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 youre 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.

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.
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 AWS services 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.

Inbound Data
Transfer at No
Additional Cost
There is no charge for
inbound data transfer
across all Amazon Web
Services in all regions. There
are minimal outbound data
transfer charges between
Amazon Web Services
within the same region.

Pricing is available for each AWS product and its specific pricing characteristics at https://aws.amazon.com/pricing/.

Page 4 of 15

Amazon Web Services How AWS Pricing Works

July 2014

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 EC2s simple web service interface allows you to obtain and configure capacity with minimal friction. It provides
complete control of your computing resources on Amazons 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 CloudWatch to monitor your EC2 instances. By default, basic
monitoring is enabled (and available at no additional cost); however, for a fixed monthly rate, you can opt for
detailed monitoring, which includes seven preselected metrics recorded once a minute. Partial months are
charged on an hourly pro rata basis, at a per instance-hour rate.

Auto Scaling - Auto Scaling automatically adjusts the number of Amazon EC2 instances in your deployment
according to conditions you define. This service is available at no additional charge beyond Amazon CloudWatch
fees.

Elastic IP Addresses - You can have one Elastic IP (EIP) address associated with a running instance at no charge.

Operating Systems and Software Packages - Operating System prices are included in the instance prices. To
view a list of currently available operating systems that you can use with your Amazon EC2 instances and their
prices, go to Amazon Elastic Compute Cloud (Amazon EC2). There are no additional licensing costs to run the
following commercial operating systems: Red Hat Enterprise Linux, SUSE Enterprise Linux, Windows Server, and
Oracle Enterprise Linux. Additionally, AWS has made it easy for you and has partnered with Microsoft, IBM and
several other vendors so you can run commercial software packages on your Amazon EC2 instances. For
example, Microsoft SQL Server on Windows, IBM Software. For commercial software packages that AWS does
not provide, such as nonstandard operating systems, Oracle Applications, Windows Server applications such as
Microsoft SharePoint and Microsoft Exchange, you need to obtain a license from the vendors. You can also bring
your existing license to the cloud through specific vendor programs such as Microsoft License Mobility through
Software Assurance Program.

Page 5 of 15

Amazon Web Services How AWS Pricing Works

July 2014

For more information about Amazon EC2 pricing, go to http://aws.amazon.com/ec2/.


Amazon Simple Storage Service (Amazon S3)


Amazon Simple Storage Service (Amazon S3) is storage for the Internet. It provides a simple web services interface that
can be used to store and retrieve any amount of data, at any time, from anywhere on the web.
When you begin to estimate the cost of Amazon S3, you need to consider the following:

Storage Class - Standard Storage is designed to provide 99.999999999% durability. Reduced Redundancy
Storage (RRS) is a storage option within Amazon S3 that you can use to reduce your costs by storing non-critical,
reproducible data at lower levels of redundancy than Amazon S3s standard storage. Reduced Redundancy
Storage is designed to provide 99.99% durability. Each class has different rates.

Storage - The number and size of objects stored in your Amazon S3 buckets as well as type of storage.

Requests - The number and type of requests. GET requests incur charges at different rates than other requests,
such as PUT and COPY requests.

Data Transfer - The amount of data transferred out of the Amazon S3 region.

For more information about Amazon S3 pricing, go to http://aws.amazon.com/pricing/s3/.

Amazon Elastic Block Store (Amazon EBS)


Amazon Elastic Block Store (EBS) provides block level storage volumes for use with Amazon EC2 instances. Amazon EBS
volumes are off-instance storage that persists independently from the life of an instance. They are analogous to virtual
disks in the cloud. Amazon EBS provides three volume types: General Purpose (SSD), Provisioned IOPS (SSD), and
Magnetic. The three volume types differ in performance characteristics and cost, so you can choose the right storage
performance and price for the needs of your applications.

Volume Size Volume storage for all EBS volume types is charged by the amount you provision in GB per
month, until you release the storage.

Volume Type You can choose what type of storage volume you would like. The default is a general purpose
SSD. You can choose a magnetic (spinning disk) volume as a lower cost option for lower I/O needs, or
Provisioned IOPS for high performance and specific I/O needs.

Input Output Operations per Second (IOPS) - I/O is included in the price of General Purpose (SSD) volumes,
while for EBS Magnetic volumes, I/O is charged by the number of requests you make to your volume. With
Provisioned IOPS (SSD) volumes, you are also charged by the amount you provision in IOPS (multiplied by the
percentage of days you provision for the month.

Snapshot - Amazon EBS provides the ability to back up snapshots of your data to Amazon S3 for durable
recovery. If you opt for EBS snapshots, the added cost is per GB-month of data stored.

For more information about Amazon Elastic Block Store (EBS) pricing, go to http://aws.amazon.com/pricing/EBS/.

Page 6 of 15

Amazon Web Services How AWS Pricing Works

July 2014

Amazon Relational Database Service (Amazon RDS)


Amazon Relational Database Service (Amazon RDS) is a web service that makes it easy to set up, operate, and scale a
relational database in the cloud. It provides cost-efficient and resizable capacity while managing time-consuming
database administration tasks, so you can focus on your applications and business.
When you begin to estimate the cost of Amazon RDS, you need to consider the following:

Clock Hours of Server Time - Resources incur charges when they are running. For example, from the time you
launch a DB instances until you terminated the DB instance.

Database Characteristics - The physical capacity of the database you choose will affect how much you are
charged. Database characteristics vary depending on the database engine, size, and memory class.

Database Purchase Type - When you use On-Demand DB Instances, you pay for compute capacity for each hour
your DB Instance runs, with no required minimum commitments. With Reserved DB Instances, you can make a
low, one-time, up-front payment for each DB Instance you wish to reserve for a 1-year or 3-year term.

Number of Database Instances - With Amazon RDS, you can provision multiple DB instances to handle peak
loads.

Provisioned Storage - There is no additional charge for backup storage of up to 100% of your provisioned
database storage for an active DB Instance. After the DB Instance is terminated, backup storage is billed per
gigabyte per month.

Additional Storage - The amount of backup storage in addition to the provisioned storage amount is billed per
gigabyte per month.

Requests - The number of input and output requests to the database.

Deployment Type - You can deploy your DB instance to a single Availability Zone (analogous to a stand-alone
data center) or multiple Availability Zones (analogous to secondary data center for enhanced availability and
durability). Storage and I/O charges vary, depending on the number of Availability Zones you deploy to.

Data Transfer - Inbound data transfer is free, and outbound data transfer costs are tiered.


Depending on the needs for your application, its possible to optimize your costs for Amazon RDS database instances by
purchasing reserved Amazon RDS database instances. To purchase Reserved Instances, you 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.
For more information about Amazon RDS pricing, go to http://aws.amazon.com/pricing/rds/.

Amazon CloudFront
Amazon CloudFront is a web service for content delivery. It integrates with other Amazon Web Services to give you an
easy way to distribute content to end users with low latency, high data transfer speeds, and no required minimum
commitments.
When you begin to estimate the cost of Amazon CloudFront, you need to consider the following:

Page 7 of 15

Amazon Web Services How AWS Pricing Works

July 2014

Traffic Distribution - Data transfer and request pricing vary across geographic regions, and pricing is based on
the edge location through which your content is served.

Requests - The number and type of requests (HTTP or HTTPS) made and the geographic region in which the
requests are made.

Data Transfer Out - The amount of data transferred out of your Amazon CloudFront edge locations.


For more information about Amazon CloudFront pricing, go to http://aws.amazon.com/pricing/cloudfront/.

How to Further Save Costs


Depending on the needs of your application, you can optimize your costs for Amazon EC2 instances by purchasing EC2
Reserved Instances or Spot Instances. On-Demand Instances are a good option if you run your Amazon EC2 Instances a
couple of hours a day or a few days per week; however, if you plan to run your Amazon EC2 Instances more than that,
Reserved Instances can save you money. To obtain Reserved Instances, you make a low, one-time payment for each
instance you want to reserve, and in turn you receive a significant discount on the hourly usage charge for that instance.
The following tables show an example of potential savings for Amazon EC2 Reserved Instances for a 1-year and 3-year
term running a single m3.large Linux instances in the US East Region. The prices are taken as of the date of publication
and may change.
Table 1: Savings Comparison of 1 Year Reserved Instances over On-Demand Instances
Utilization Rate

On-Demand

1 Year Medium
Utilization

1 Year Heavy
Utilization

10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

$122.98
$245.95
$368.93
$491.90
$614.88
$737.86
$860.83
$983.81
$1,106.78
$1,229.76

-234%
-86%
-37%
-13%
2%
12%
19%
24%
28%
31%

-525%
-212%
-108%
-56%
-25%
-4%
11%
22%
31%
38%

Utilization Rate = % of time your instance is running; Prices shown for US East Region as of July 20th 2014

As shown in table 1, if your Amazon EC2 instance is running at more than 50% utilization or more than 6 months over a 1
year term, you can achieve savings over On-Demand instances. Using Heavy Utilization Reserved Instances, you can save up
to 38% over a 1 year term.


Page 8 of 15

Amazon Web Services How AWS Pricing Works

July 2014

Table 2: Savings Comparison of 3 Year Reserved Instances over On-Demand Instances


Utilization Rate

On-Demand

3 Yr. Medium
Utilization

3 Yr. Heavy
Utilization

10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

$368.93
$737.86
$1,106.78
$1,475.71
$1,844.64
$2,213.57
$2,582.50
$2,951.42
$3,320.35
$3,689.28

-85%
-8%
18%
31%
38%
43%
47%
50%
52%
54%

-297%
-98%
-32%
1%
21%
34%
43%
50%
56%
60%

Utilization Rate = % of time your instance is running; Prices shown for US East Region as of July 20th 2014
As shown in table 2, if your Amazon EC2 instance is running at more than 30% utilization or more than 10.8 months over
a 3 year term, you can achieve savings over On-Demand instances. Using Heavy Utilization Reserved Instances, you can
save up to 60% over a 3 year term.
Suppose you have deployed your web application on AWS, and you need to run six Amazon EC2 instances:

Two m3.medium Linux Instances for the web servers


Two m3.medium Linux Instances for the application servers
Two m3.large Linux Instances for the database servers


You have a number of options for running these instances. For example, you can run On-Demand Instances only, On-
Demand and Reserved Instances (Medium Utilization), or if you know the utilization of your Amazon EC2 instances, you
can run On-Demand and a mixture of different Utilization Reserved Instances. There are a number of other options, but
this table shows four different options using these three combinations.

Description

Option 1

Option 2

Option 3

Option 4

Web servers

2 On-Demand

2 On-Demand

2 Heavy Utilization RI

App servers

2 On-Demand

2 On-Demand

1 On-Demand and
1 Medium Utilization RI
1 On-Demand and
1 Medium Utilization RI
2 Medium Utilization RI

2 Heavy Utilization RI

Database
2 On-Demand
2 Medium Utilization RI
2 Heavy Utilization RI
servers

The following table compares costs for each option and shows the total savings over On-Demand instances for 1-year
and 3-year terms. You save money when you use Medium Utilization Reserved Instances and then you save even more
money when you use Heavy Utilization Reserved Instances. Heavy Utilization Reserved Instances offer you the maximum
savings over On-Demand instances. The prices are taken as of the date of publication and may change.

Page 9 of 15

Amazon Web Services How AWS Pricing Works

Monthly Cost

1 Year Term
3 Year Term
1 Year Term
3 Year Term
1 Year Term (x12)
3 Years Term (x36)
1 Year Term
3 Years Term

One-Time Cost
(Reserved Instances)
Total Cost
Savings
(Over Option 1)

July 2014

Option 1
Calculator

Option 2
Calculator

Option 3
Calculator

Option 4
Calculator

$409.92
$409.92
-
-
$4919.04
$14757.12
n/a
n/a

$285.48
$267.92
$724.95
$1142.00
$4150.71
$11857.76
15%
20%

$222.54
$197.66
$1086.00
$1714.00
$3756.48
$8829.76
24%
40%

$106.90
$87.84
$1774.00
$2694.00
$3056.80
$5856.24
37%
60%

Prices shown for US East Region as of July 20th 2014


Your Reserved Instance will be available for the operating system (Linux/UNIX or Windows) and Availability Zone in
which you purchased it. For more information about Reserved Instances, go to Amazon EC2 Reserved Instance pages.
Spot Instances are unused Amazon EC2 capacity that you bid for. Instances are charged at Spot Price, which is set by
Amazon EC2 and fluctuates periodically depending on the supply of, and demand for, Spot Instance capacity. If your
maximum bid exceeds the current Spot Price, your bid request is fulfilled, and your instances will run until either you
choose to terminate them or the Spot Price increases above your maximum bid, whichever is sooner. To learn more
about Spot Instances, go to http://aws.amazon.com/ec2/spot-instances/.

Conclusion
While the number and types of services offered by AWS has increased dramatically, our philosophy on pricing has not
changed. You pay as you go, pay for what you use, pay less as you use more, and pay even less when you reserve
capacity. Projecting costs for a use case, such as web application hosting, can be challenging, because a solution typically
uses multiple features across multiple AWS products, which in turn means there are more factors and purchase options
to consider.
The best way to estimate costs is to examine the fundamental characteristics for each AWS product, estimate your
usage for each characteristic, and then map that usage to the prices posted on the website. To help you understand how
AWS pricing works in the context of real-world solutions, see a worked out example later in this paper.
You can use the AWS Simple Monthly Calculator to estimate your monthly bill. The calculator provides per service cost
breakdown, as well as an aggregate monthly estimate. You can also use the calculator to see an estimation and
breakdown of costs for common solutions.
AWS has introduced a free usage tier to help you get started with AWS. Take advantage of the Free Usage Tier, and get
started today!

Page 10 of 15

Amazon Web Services How AWS Pricing Works

Resources
Resource
AWS Simple Monthly
Calculator

Description
The AWS Simple Monthly Calculator helps estimate your monthly bill.
The AWS Architecture Center provides you with the necessary guidance and
best practices to build highly scalable and reliable applications in the AWS
Cloud.
The AWS Economics Center provides access to information, tools, and
resources to compare the costs of Amazon Web Services with IT
infrastructure alternatives.
View your current charges and account activity, itemized by service and by
usage type. Previous months billing statements are also available.
Usage reports are available to download for each service. Reports can be
customized by specifying usage types, timeframe, service operations, and
more.

AWS Architecture Center

AWS Economics Center


AWS Account Activity Page
AWS Usage Reports

Page 11 of 15

July 2014

Amazon Web Services How AWS Pricing Works

July 2014

Cost Calculation Example


This section of the document uses the AWS Simple Monthly Calculator to provide costing example of a common use case
of a dynamic website hosted on AWS using Amazon EC2, Auto Scaling, and Amazon RDS. The Amazon EC2 instance runs
the web and application tiers, and we use Auto Scaling to match the number of instances to the traffic load. Amazon RDS
uses one DB instance for its primary storage. This DB instance is deployed across multiple Availability Zones. The prices
are taken as of the date of publication and may change.

Architecture
Elastic Load Balancing balances traffic across one or more Amazon EC2 instances. The Amazon EC2 instances belong to
an Auto Scaling group, and the Auto Scaling group either adds or subtracts Amazon EC2 instances, depending on
variations in the traffic load. Deploying Amazon RDS across multiple Availability Zones enhances data durability and
availability. Amazon RDS provisions and maintains a standby in a different Availability Zone for automatic failover in the
event of planned or unplanned outages. The following illustration shows the example architecture for a dynamic website
using Amazon EC2, Auto Scaling, and one Amazon RDS database instance across multiple Availability Zones.


Figure 1: Complex Dynamic Site Architecture

Daily Usage Profile


You can monitor daily usage for your application so that you can better estimate your costs. For instance, you can look
at the daily pattern to figure out how your application handles traffic. For each hour, track how many hits you get at

Page 12 of 15

Amazon Web Services How AWS Pricing Works

July 2014

your website. Then track how many instances are running. Add up the total number of hits for that day. Examine the
number of Amazon EC2 instances that run each hour, and then take the average. You can use the number of hits per day
and the average number of instances for your calculations.

Amazon EC2 Cost Breakdown


The following table shows the characteristics for Amazon EC2 we have identified for this dynamic site.
Characteristic
Clock Hours of Server Time
Machine Characteristics
Additional Storage
Data Transfer
Instance Scale
Elastic Load Balancing

Estimated Usage
24 hrs/day

Description
At an average of 30.5 days in a month, the instance runs
732 hours/month

m3.medium instance,
3.75 GiB of memory, 1 vCPU, 4 GB of SSD storage
instance storage
For this application, we need only the local storage which
No EBS volumes
is packaged with the AMI.
There are approximately 1,000,000 hits per day. Each
Data In: 5 GB/day
response transfers out about 50 KB, and each request
Data Out: 50 GB /day transfers in about 5 KB.
4
Hourly usage: 732
hrs/month
Data processed:
1677.5 GB/month

Elastic IP Address

None

Detailed Monitoring

None

On average in a given day, there are 4 instances running.


Elastic Load Balancing is used 24 hours/day, 7 days/week.
Elastic Load Balancing processes a total of 55 GB/day
(data in + data out)
We use Elastic Load Balancing to balance traffic across
instances.
Detailed monitoring is not enabled, so we get basic
monitoring free of charge.

The total cost for one month is the sum of the cost of the running instances, overall AWS data transfer, Elastic Load
Balancers, and the data processed by the Elastic Load Balancers.
Variable
Amazon EC2 Instance Cost

Elastic Load Balancer Cost

Formula

Calculation


X

Instance cost per hour


Number of instances
Uptime in hours

(Hours used X Hourly Rate)


+(Data processed (GB) X Process Rate)

(Data in (GB) X Data In Rate)


+(Data out (GB) X Data Out Rate)

Estimated Cost for Amazon EC2

th
Prices shown for US East Region as of July 20 2014
AWS Data Transfer Cost

Since up to one gigabyte is free per month, we subtract one.

Page 13 of 15

$0.070

4
X
732
$204.96
732 X $0.025
X 1677.5 X $0.008
$31.72
152.5 X $0.00
+ (1525-1) 1 X $0.12
$182.88
$419.56

Amazon Web Services How AWS Pricing Works

July 2014

We use the AWS Simple Monthly Calculator to estimate this cost. Using the calculator, we arrive at the total cost for one
months usage for Amazon EC2 of $419.562.

Amazon RDS Cost Breakdown


The following table shows the characteristics for Amazon RDS we have identified for this complex dynamic site.
Characteristic
Clock Hours of Server Time

Estimated Usage
24 hrs/day

Description
24*30.5 = 732 hours per month

Database Characteristics

Medium RDS
instance

3.75 GiB memory, 1 virtual core, Moderate network


performance

Provisioned Storage

100 GB/month

Amazon provides 5 GB to 1 TB of associated storage


capacity for your primary data set.

Requests

300M I/O
requests/month

We have 1,000,000 hits per day at a rate of 5 I/O


requests per hit on site with 30.5 days in a month on
average. This is a total of 150M I/O requests per
month, but since the write I/O request will double
because data is also replicated to the standby
instance, we have a total of 300M.
We will run our database instance across multiple
Availability Zones.
Well use up to the provisioned amount, which is 100
GB.
There is no data transfer from RDS to the Internet.

Deployment Type
Additional Backup Storage
Data Transfer

Multiple
Availability Zones
None
Data in: 0 GB
Data out: 0 GB
1
None

Database Instance Scale


We need one database instance.
Special Features
There are no reserved database instances.

Because we do not have data transfer in or out, and we do not have additional backup storage, the total cost for one
month is the sum of the cost of the running instances, provisioned storage, and I/O requests.
Variable
Instance Cost

Provisioned Storage

I/O Requests

Formula

Calculation


X

Instance cost per hour


Number of instances
Uptime in hours

Storage rate
X Storage Amount (GB)

I/O rate
X
Number of requests

Depending on regional factors and special offers, the cost you get from the calculator will be slightly different.

Page 14 of 15

$0.180

1
X 732
$131.76
$0.20
X 100
$20.00
$0.10
X
300
$30.00

Amazon Web Services How AWS Pricing Works

Estimated cost for Amazon RDS

July 2014

$181.76

Prices shown for US East Region as of July 20th 2014



We use the AWS Simple Monthly Calculator to estimate this cost. The total cost for one months usage for Amazon RDS
portion of this scenario is $181.763.

Total Cost
To calculate the total cost for this example, we add the cost for Amazon EC2, Amazon RDS, and AWS Data Transfer Out
and subtract any discount that falls into the AWS Free Usage Tier. The total cost of the dynamic site in this scenario is
estimated at $601.323 per month.

Depending on regional factors and special offers, the cost you get from the AWS Simple Monthly Calculator will be slightly
different.

Page 15 of 15

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