Chapter 15. Billing, Budgeting, and Cost Management in AWS
In this chapter, we’ll start by reviewing AWS’s pricing models, including On-Demand, Reserved Instances, Savings Plans, and Spot Instances.
But picking the right pricing model is just the beginning. AWS gives you solid tools to help track and manage your costs. Tools like Cost Explorer, AWS Budgets, and the AWS Pricing Calculator give you visibility into where your money’s going, and help you make smarter decisions about resource usage.
This chapter will also show how cost allocation tags can categorize expenses by team, project, or environment. When you combine these tags with AWS Organizations and the right support plans, you will have a strong foundation for managing cloud spend across different parts of your business.
These topics represent the smallest proportion of the questions on the AWS Certified Cloud Practitioner exam, at 12%. But this certainly does not diminish their importance. In this chapter, we’ll look at what you need to know.
AWS Pricing Models
AWS pricing works much like your electricity bill. That is, you pay for what you use. Instead of shelling out sums up front for servers and infrastructure, you’re only charged based on your consumption.
Pricing for services falls into three main categories: compute, storage, and outbound data transfers. You generally won’t pay anything for data coming into AWS or moving between services in the same region.
Each AWS service has its own pricing factors. For EC2, ...
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