Amazon Web Services Pricing – A Deep Dive Into Pay-On-The-Go Model


Ever wondered why Amazon web services are popular among all cloud services. Let us go around the concept in deep together and understand why AWS is so popular today and how can you make the most out of the AWS pricing model to optimize the overall costs for your project.

There are a couple of reasons why you should pick one service over other. Here, we will discuss the most popular reasons to understand the popularity of AWS among leaders.The reasons may be plenty but I am sure these are the foremost reasons to convince anyone why AWS is the primary choice over others.

Amazon Web Services Pricing – A Deep Dive Into Pay-On-The-Go Model

  • Customer-Focused Services–Amazon is a customer-obsessed Company where you will never get disappointed with the services.
  • Highly Affordable Services–AWS pricing model is highly flexible where you can start with as much low as you want like $5 as well.
  • Free Trials before you pay actually – Surprised but this is true that you can take the service demo first before you make the actual payment. For this purpose, Amazon has given free Tier options and they are very generous with the free services.

Excited! Be patient because we have covered everything in detail later about AWS pricing model and how it works for the customer. So, till the time you must be clear with the facts why AWS is so popular among other cloud services. AWS customers are also pretty much satisfied with the services that can be seen clearly in their pricing model, let us have a deep dive into the matter further.

How does Amazon Web Services Pricing model work?

AWS pricing model follows pay-on the-go approach for more than seventy cloud services. With AWS, you have to pay for the service you use without any long-term complex licensing scheme. You will be surprised but AWS pricing model works similarly as electricity bills.

Amazon Web Services Pricing – A Deep Dive Into Pay-On-The-Go Model

At the end of the month, you just pay for the units you have consumed during the complete month. Most importantly, there is no hidden fees or termination charges if you want to move back from the cloud services.

Example – For the deep understanding, let us take a practical example to understand the Pay-on-the-go model for AWS pricing. Your estimate monthly usage for AWS infrastructure is 500 GB but during certain months only 200 GB was consumed by you, so what can be the possible options there?

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Either you have to pay for the complete plan or you have the option to reserve the instances and pay for used space only. Well, the best part of Amazon web services pricing model is that you have to pay for consumed storage only and you can always store more as soon as your requirements grow.

Enjoy Volume-based discounts with AWS!

With AWS, you can enjoy volume-based discounts as your requirements grow based on tiered pricing schemes. More GB you will use, less you have to pay per GB. Additionally, data transfer is free of costs that encourage adoption of AWS keeps services under control.

Interestingly, AWS allows you to avail additional services to address diverse needs of a business. You just have to choose the right storage option for your business to make most out of the Amazon Web Services that not only reduces costs but helps you to increase the performance level of your services as well.

Amazon Web Services Pricing – A Deep Dive Into Pay-On-The-Go Model

Invest into Reserved Instances for Smart savings

AWS offers on-demand instances still it has reserve instances facility for certain services like Amazon EC2, RDS etc. Here, you can reserve instances for the limited time period only and save dollars that helps you to grow ultimately. You will be shocked to know that more than 75 percent of the total costs can be saved with reserved instances when compared to Demand instances.

Amazon Web Services Pricing – A Deep Dive Into Pay-On-The-Go Model

For reserved instances, there are three popular types of pricing models, these are No upfront pricing scheme, Partial Upfront pricing scheme, and Full upfront pricing schemes.

  • For the ‘No Upfront’ pricing model, you don’t have to pay anything in advance to reserve the instances but later costs are generally higher as compared to other two schemes.
  • For the ‘Partial Upfront’ pricing model, you have to pay only a limited amount to reserve the instances but is affordable than No Upfront option and still expensive as compared to Full Upfront payment scheme.
  • For the ‘Full Upfront’ pricing model, you have to pay the full amount in advance to reserve the instances yet it the most affordable option since you pay all the amount in advance only.
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Forecast your saving with AWS calculators

There are two types of calculators offered by the AWS, these are AWS calculator and the TCO Calculator. With the help of these calculators, you have the flexibility to forecast your savings precisely.

Amazon Web Services Pricing – A Deep Dive Into Pay-On-The-Go Model

  • AWS Calculator offers you templates where you check your monthly expenses based on the resources that will be used for your business. The best part is that calculations are highly accurate as per your expectations.
  • TCO Calculator is used to comparing service prices with each other or you can compare infrastructure solution too. It will suggest you the most affordable options based on your business needs and current infrastructure solution.

Amazon Web Services Free Tier

This is the most interesting aspect of Amazon Web Services Pricing model. In the Free Tier, services are given free to the customers for trial so that you can get hands-on with AWS and you can be sure that your investments worth for each penny you are supposed to pay for the services.

Amazon Web Services Pricing – A Deep Dive Into Pay-On-The-Go Model

With the Free Tier, you could avail two types of services, these are Introductory and Non – Expiring services. The introductory services are available for each AWS user who sign up for the new account. These services are valid for 12 months from the day they register on AWS. The set of services included under Introductory category are –

Amazon Web Services Pricing – A Deep Dive Into Pay-On-The-Go Model

The non-expiring services, as the name suggest ate the services that are valid even after the 12 months. The set of services included under non-expiring category are –

Amazon Web Services Pricing – A Deep Dive Into Pay-On-The-Go Model

Since Amazon Web Services pricing schemes change frequently, so it is the best idea to take reference from the AWS pricing site directly.

Wrapping Up:

That’s all for the day guys! I hope you enjoyed reading the blog and got relevant information after a deep dive into Amazon Web service pricing model that is based on pay-on-the-go approach. Having a perfect idea on AWS pricing model is a must-have requirement when you are planning to move your business to AWS cloud.

With the broader set of AWS cloud services, your business would start moving faster at much lower IT costs and it can be used for almost anything that you want to run in the cloud.

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