Abdullah Şamil Güser

Domain 4: Billing, Pricing, and Support in AWS

Overview

Domain 4 focuses on understanding AWS’s billing, pricing models, and support options, highlighting the shift from fixed-cost models in on-premises environments to variable pricing models in the cloud.

Task Statements Breakdown

Task 4.1: Compare AWS Pricing Models

• Objective: Understand the variable pricing model of AWS, which depends on actual usage patterns, unlike fixed-cost models in traditional on-premises setups.
• Key Concepts:
  • Pay-as-you-go Model: Costs vary month-to-month based on usage.
  • Cost Optimization: Potential to influence AWS bills through architectural decisions and usage patterns.
  • Usage Patterns and Costs: Understand how different services and usage scenarios impact pricing.

Task 4.2: Understand Resources for Billing, Budget, and Cost Management

• Objective: Familiarize with tools and strategies for estimating, tracking, and managing AWS expenses.
• Key Resources:
  • AWS Cost Explorer: For analyzing and visualizing costs and usage.
  • AWS Budgets: To set custom budget alerts.
  • Cost Management Tools: Understanding various tools available for managing AWS costs.

Task 4.3: Identify AWS Technical Resources for AWS Support Options

• Objective: Recognize available resources and support plans for billing queries and technical assistance.
• Support Resources:
  • AWS Support Plans: Different levels of support for varied business needs.
  • Billing Support: Resources for resolving billing queries.
  • Technical Assistance: Channels for obtaining help with AWS services and features.

Next Steps

• First Video Focus: Dive into AWS pricing models, understanding the implications of pay-as-you-go, and explore ways to predict and control costs.
• Goal: Equip with the knowledge to effectively manage AWS costs and understand the support structures available for AWS users.

Task Statement 4.1: Compare AWS Pricing Models

Cost Optimization in AWS

• Definition: Achieving business value delivery at the lowest price point.
• Tools and Services: AWS Budgets, Cost and Usage Reports, Cost Explorer, Reserved Instances, Spot Instances, S3, and Glacier.
• Strategies: Matching supply with demand using services like Lambda, EC2 Auto Scaling.

Principles of Cost Optimization

• Rightsizing: Selecting appropriate instance sizes and types.
• Elasticity: Using resources only when needed, following a pay-for-what-you-use model.
• Pricing Models: Choosing between Reserved, On-Demand, Spot Instances, Saving Plans, etc.

AWS Pricing Models

• On-Demand Instances: Flexible, suitable for unpredictable workloads.
• Reserved Instances: Up to 72% savings, 1- or 3-year commitments.
• Spot Instances: Up to 90% savings, suitable for flexible, interruption-tolerant workloads.

Cost Optimization Services

• AWS Trusted Advisor: Monitors infrastructure, recommends optimization.
• AWS Cost Explorer: Tracks and analyzes AWS spending.

Cost Optimization Design Principles

• Storage Optimization: Match storage class to usage, consider S3, EBS, EFS, CloudFront, etc.
• Data Transfer Considerations: Utilize services like Direct Connect and CloudFront to minimize data transfer costs.
• Monitoring and Measurement: Utilize CloudWatch, Trusted Advisor, Well-Architected Framework Tool, and Cost Explorer for ongoing cost management.

Best Practices

• Cost Allocation Tagging: For visibility and accountability of resource costs.
• Effective Account Structure: Aligns with end goals and facilitates cost tracking.
• Team Ownership of Costs: Empower teams with visibility and responsibility for their costs.
• Cloud Center of Excellence (CCOE): A team focused on staying updated with AWS best practices and cost-effective usage.

Next Steps

• Deep Dive: Explore each pricing model in detail, understand specific use cases and benefits.
• Goal: Master the ability to strategically select pricing models to optimize costs while meeting business needs.

Let’s move to the next task statement: Resources for Billing, Budget, and Cost Management.

Task Statement 4.2: Understand Resources for Billing, Budget, and Cost Management

Cost Management Tools and Strategies

• AWS Cost Explorer: For high-level financial reports and detailed analysis of AWS costs and usage.
• AWS Cost and Usage Reports: Provide granular data about costs and usage.
• Billing Alarms and AWS Budgets: Set up automated actions based on budget thresholds.
• AWS Organizations and Control Tower: Central management of billing, access, compliance, and shared resources.

Utilizing AWS Services for Cost Optimization

• AWS Auto Scaling and EC2 Auto Scaling: Minimize costs by matching customer demand.
• AWS Lambda and API Gateway: Automatically scale resources.
• Trusted Advisor: Recommendations for underutilized resources.
• EBS Optimization: Analyze IOPS usage versus capacity for cost savings.

Data Lifecycle Management

• Amazon Data Lifecycle Manager and AWS Backup: Automate deletion of old EBS snapshots/backups.
• Amazon S3 Storage Classes: Familiarize with trade-offs between storage costs and retrieval costs.

Data Transfer and Migration Optimization

• AWS DataSync, Snow Family, AWS Transfer Family, and Storage Gateway: Optimize data migration costs for hybrid environments.
• AWS Pricing Calculator: Estimate migration and operational costs on AWS.

Consolidated Billing and Volume Discounts

• Consolidated Billing: Combine usage across accounts for volume discounts.
• AWS Billing Conductor: Custom billing for AWS Solution Providers and Enterprise customers.

Specific Scenario-Based Questions

• Data Transfer Scenarios: Know cost implications of data transfers in various scenarios (e.g., between regions, to the internet).
• S3 Lifecycle Policies and Intelligent Tiering: Understand automatic transitioning and cost-effective access tiering.

Key Takeaways

• Cost Monitoring: Regularly review infrastructure changes and optimize based on cost.
• Cost Allocation Tags: Use tags for filtering and analyzing costs.
• Resource Rightsizing: Continuously assess and adjust resource allocation.
• Data Transfer Considerations: Be aware of costs associated with data transfers and choose optimal solutions.

Next Steps

• Deep Dive: Explore each cost management tool and service in detail.
• Goal: Master the ability to efficiently manage and optimize AWS costs, aligning with business objectives and usage patterns.

Let’s move to the final task statement: Identifying AWS technical resources and AWS support options.

Task Statement 4.3: Identify AWS Technical Resources and Support Options

AWS Support Plans

• AWS Support Plans: Different levels (Basic, Developer, Business, Enterprise) offer varying degrees of support.
  • Enterprise Support: Concierge service, 24/7 technical support, technical account manager, proactive and preventative programs.
  • Business Support Plan: Includes access to AWS support API, use case guidance, Trusted Advisor, and third-party software support.
  • Developer Support Plan: Cost-effective plan with unlimited technical support cases and access to core Trusted Advisor checks.

Utilizing AWS Support and Resources

• AWS Documentation: Extensive documentation for AWS services and features.
• AWS re:Post: Community-driven platform for technical questions and answers.
• AWS Training and Certification: Skill-building through AWS Skill Builder, digital training, and hands-on labs.
• Technical Account Managers (TAMs): Personalized technical support and guidance for your AWS environment.
• AWS Partner Network (APN): Access to a global community of partners with various specializations and skills.

Seeking Assistance

• Documented Knowledge: First step in seeking support; use AWS documentation, whitepapers, and blogs.
• Community Support: AWS re:Post for community-driven advice and solutions.
• Professional Services and APN: For specialized assistance and solutions tailored to specific needs.

Key Takeaways

• Know Your Support Plan Options: Understand the features and benefits of each AWS support plan.
• Leverage AWS Resources: Utilize the wealth of AWS resources for learning, problem-solving, and optimization.
• Effective Search Skills: Develop strong search skills to quickly find relevant information and solutions.
• Support Sources Identification: Be able to identify the most appropriate source of technical assistance based on the issue at hand.

Next Steps

• Deep Dive into AWS Resources: Explore AWS documentation, re:Post, training programs, and partner network in greater detail.
• Develop Search Skills: Practice finding solutions to AWS-related issues efficiently.
• Understand Support Escalation: Learn when and how to escalate issues through AWS support channels.

Let’s move on to the seventh walkthrough question.

Walkthrough Question 7: AWS Pricing Models

Question

• Scenario: A company requires compliance and software licensing that mandates a workload to be hosted on a physical server.
• Keywords: Compliance, software licensing, physical server.

Answer Choices

• Option A: Dedicated Hosts
• Option B: Dedicated Instances
• Option C: Spot Instances
• Option D: Reserved Instances

Evaluation

• Dedicated Hosts (Option A): Physical server fully dedicated to the user’s use. Correct for requirements of a physical server for compliance and licensing.
• Dedicated Instances (Option B): Instances on hardware dedicated to a single customer, but may share hardware with other instances from the same customer. Incorrect for specific physical server requirement.
• Spot Instances (Option C): Utilize unused EC2 capacity at a discount. Incorrect as they do not guarantee a physical server.
• Reserved Instances (Option D): Savings on EC2 costs, but not hosted on a dedicated physical server. Incorrect for physical server requirement.

Conclusion

• Correct Answer: Option A (Dedicated Hosts)
• Rationale: Meets the specific need for a workload to be hosted on a physical server for compliance and licensing reasons.

Next Steps

• Review AWS EC2 Pricing Options: Understand the differences between Dedicated Hosts, Dedicated Instances, Spot Instances, and Reserved Instances.
• Study Compliance Requirements: Learn how different EC2 pricing options align with various compliance and licensing needs.

Let’s move on to the eighth walkthrough question.

Walkthrough Question 8: AWS Consolidated Billing

Question

• Scenario: Understanding the advantage of consolidated billing on AWS.
• Keywords: Consolidated billing.

Answer Choices

• Option A: Volume pricing qualification.
• Option B: Shared access permissions.
• Option C: Multiple bills for each account.
• Option D: Elimination of the need to tag resources.

Evaluation

• Volume Pricing Qualification (Option A): Allows sharing volume pricing discounts across all accounts in an organization. Correct for the advantage of consolidated billing.
• Shared Access Permissions (Option B): Pertains to IAM roles, not directly related to consolidated billing. Incorrect.
• Multiple Bills for Each Account (Option C): Consolidated billing aims to combine multiple accounts into a single bill. Incorrect.
• Elimination of the Need to Tag Resources (Option D): Tagging is still useful in consolidated billing for organization and tracking. Incorrect.

Conclusion

• Correct Answer: Option A (Volume pricing qualification).
• Rationale: Consolidated billing allows for cost savings through shared volume pricing discounts across multiple AWS accounts.

Next Steps

• Review AWS Organizations: Deepen understanding of how consolidated billing works within AWS Organizations.
• Study Tagging Strategies: Learn about the role and importance of tagging in managing costs effectively, even within consolidated billing.

This concludes the eighth walkthrough question. Let’s proceed to the final lesson to wrap up this course.