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One of the biggest advantages of cloud computing is the shift from large capital expenditure (CapEx) to operational expenditure (OpEx). Instead of buying hardware upfront, you pay only for what you use. However, AWS pricing can be complex — understanding the models helps you optimise costs and avoid bill shock.
AWS pricing is built on three foundations:
| Principle | Description |
|---|---|
| Pay as you go | No upfront commitments. Pay only for resources you consume, for as long as you use them |
| Pay less when you reserve | Commit to 1 or 3 years of usage and receive significant discounts |
| Pay less as you use more | Volume-based pricing tiers — the more you use, the lower the unit cost |
Different AWS services use different pricing dimensions:
| Service | Pricing Dimensions |
|---|---|
| EC2 | Per second or per hour, based on instance type, OS, and Region |
| Lambda | Per request + per GB-second of compute time |
| Fargate | Per vCPU-hour + per GB-hour of memory |
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