AWS helps you reduce your overall IT costs in multiple ways. With AWS you can replace your upfront capital expense with low variable cost and pay only for the resources you consume. AWS's economies of scale, and efficiency improvements, allow AWS to continually lower prices, while multiple pricing models allow you to optimize your costs for both variable and stable workloads.
AWS's pricing philosophy is driven by a virtuous cycle - more AWS customers drive more AWS usage; more AWS usage drives greater infrastructure spend, which gives AWS significant economies of scale - thereby lowering infrastructure cost and allowing AWS to pass savings on to customers in the form of lower prices.
AWS has lowered prices 45 times in the last six years. Some of the recent price reductions include the following -
#45, 01 Aug 2014 – Amazon Route 53 Price Reduction
#44, 01 Jul 2014 – Amazon Redshift Price Reductions in Asia
#43, 17 Jun 2014 – EBS Provisioned IOPS Price Reduction
#42, 26 Mar 2014 - EC2, S3, RDS, EMR, ElastiCache Price Drops
#41, 21 Jan 2014 – EBS and S3 Price Reductions
#40, 20 Dec 2013 – EC2 HI1 Instance Price Reduction
#39, 05 Nov 2013 – EC2 M3 Instance Price Reduction
#38, 10 Jul 2013 – EC2 Dedicated Instance Price Reduction
#37, 10 Jun 2013 – RDS MySQL, SQL & Oracle Price Drops
For a complete list of price drops, refer to the AWS blog
No minimum commitments or long-term contracts required. You replace your upfront capital expense with low variable cost and pay only for what you use. In essence, you convert your capital expense into variable expense.
You save more as you grow bigger. For storage and data transfer, pricing is tiered. The more you use, the less you pay per gigabyte. For compute, you get volume discounts up to 10% when you reserve more.
For certain services like Amazon EC2 and Amazon RDS, you can invest in reserved capacity. In that case, you pay a low upfront fee and get a significantly discounted hourly rate, which results in overall savings up to 60% (depending on the type of instance you reserve) over equivalent On-Demand capacity.
AWS is constantly focused on reducing our data center infrastructure costs and improving our operational efficiencies. These optimizations, and AWS’s growing economies of scale, result in passing savings back to you in the form of lower prices. Since 2006, AWS has lowered pricing 45 times.
There are three fundamental characteristics you pay for with AWS: compute, storage, and data transfer out. These characteristics vary slightly depending on the AWS product you are using. However, fundamentally these are the core characteristics that have the greatest impact on your AWS cost.
AWS also offers a variety of services for no additional charge. These include Amazon VPC, AWS Elastic Beanstalk, AWS CloudFormation, AWS Identity and Access Management, Auto Scaling, and AWS OpsWorks.
To help new AWS customers get started in the cloud, AWS is introduced a free usage tier. The free tier can be used for anything you want to run in the cloud: launch new applications, test existing applications in the cloud, or simply gain hands-on experience with AWS.
Select from the dropdown menu below to see all AWS Free Tier available products.