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What You Will Learn
Beginner
- How cloud pricing works
- The different pricing models
- How to avoid bill shock
Pricing Models
| Model | Description | Discount |
|---|---|---|
| On-Demand | Pay per hour/second, no commitment | None (full price) |
| Reserved | Commit to 1 or 3 years | Up to 72% off |
| Spot | Spare capacity, can be terminated | Up to 90% off |
| Savings Plan | Commit to $/hour spend | Up to 66% off |
Bill shock warning
Cloud pricing is pay-as-you-go. A forgotten EC2 instance = $700/month. Always set up billing alerts before doing anything else.AWS CLIbash
# Set up a billing alert
aws budgets create-budget ...Practical Exercise
Go to AWS Console -> Billing
Set up a billing alert for $10
Explore the AWS Pricing Calculator
Search for "AWS free tier" to see what is free
Key Takeaways
- On-Demand: pay per use, most expensive.
- Reserved: commit 1-3 years, up to 72% off.
- Spot: spare capacity, up to 90% off, can be terminated.
- ALWAYS set up billing alerts before doing anything.
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