AWS pricing can be a little confusing, but it’s actually quite simple. There are two types of AWS pricing: usage and fees.
Usage pricing is how much you pay per hour, month, or year for the resources you use. Fees are a flat charge per month or year for using AWS services.
Usage pricing is based on the amount of resources you use. For example, if you use 1 EC2 instance per month, your usage is capped at 1 instance per month.
If you use 10 EC2 instances per month, your usage is still capped at 10 instances per month.
Fees are based on the number of hours, months, or years you have been using AWS. For example, if you have been using AWS for 1 year, your annual fees are $200.
If you stop using AWS within 6 months, you will still have to pay your annual fees.
AWS allows you to use different pricing models, which allow you to pay for the resources you use. The three most common models are usage-based, time-based, and usage-based with performance-based.
PRO TIP: AWS pricing can be confusing and complicated. Make sure you understand how it works before using AWS. Otherwise, you may end up paying more than you expect.
Usage-based pricing is the simplest type of pricing. You pay for the resources you use.
For example, if you use 1 EC2 instance per month, your usage is capped at 1 instance per month.
Time-based pricing is similar to usage-based pricing, but you pay for the amount of time you use the resources. For example, if you use 1 EC2 instance for 3 hours per month, your usage is capped at 3 hours per month.
Usage-based with performance-based pricing is the most complicated type of pricing. You pay for the resources you use, plus you pay for the performance of the resources.
For example, if you use 1 EC2 instance per month, your usage is capped at 1 instance per month, but your usage is also capped based on the performance of the EC2 instance.
The three most common types of performance-based pricing are minimums, maximums, and averages. Minimums require that you use the resources within a certain number of minutes, hours, or days.
Maximums require that you use the resources within a certain number of hours, days, or weeks. Averages require that you use the resources within a certain number of hours, days, or weeks, but also give you a guaranteed minimum performance level.
AWS also offers a pay-as-you-go model. This model allows you to pay for the resources you use, rather than paying for the resources you use and for the performance of the resources.
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