On-Demand pricing lets you pay for capacity by the hour. Your data warehouse cluster requires no long-term commitments or upfront costs. This frees you from the cost and complexity of planning and purchasing data warehouse capacity ahead of your needs. On-Demand pricing lets you pay as you go.
Reserved Instance pricing offers significant savings over On-Demand pricing. Reserved Instances are appropriate for steady-state production workloads. You commit to the entire duration of the Reserved Instance term. Using Reserved Instance pricing, you can save 41% with a 1-year term and 73% with a 3-year term over On-Demand pricing.
For On-Demand, the effective price per TB per year is the hourly price for the instance times the number of hours in a year divided by the number of TB per instance. Let's consider this in the context of US East (N. Virginia). In this case, using On Demand pricing, this works out to $3,723 per TB per year for both XL and 8XL nodes. For Reserved Instances, the effective price per TB per year is the upfront payment plus the hourly payment times the number of hours in the term divided by the number of years in the term and the number of TB per node. Again using US East (N. Virginia), for 1 year Reserved Instances, this works out to $2,190 per TB per Year. For 3 year Reserved Instances, the effective price is $999 per TB per year.
Backup storage is the storage associated with your automated and manual snapshots for your data warehouse. Increasing your backup retention period or taking additional snapshots increases the backup storage consumed by your data warehouse. There is no additional charge for backup storage up to 100% of your provisioned storage for an active data warehouse cluster. For example, if you have an active single XL node cluster with 2TB of storage, we will provide up to 2TB-Month of backup storage at no additional charge. Backup storage beyond the provisioned storage size and backups stored after your cluster is terminated are billed at standard Amazon S3 rates.
Amazon Redshift does not charge for data transfer. In particular, you will not incur charges for data transferred between Amazon Redshift and Amazon S3 for backup, restore, load, or unload operations. However, if you run your Amazon Redshift clusters in Amazon VPC, you will see a charge from AWS at standard AWS Data Transfer rates for the data transferred over JDBC/ODBC to your Amazon Redshift cluster endpoint.
You have a choice of two node types when provisioning your cluster, an extra large node (XL) with 2TB of compressed storage or an eight extra large node (8XL) with 16TB of compressed storage. You can start with a single XL node and scale up to a 100-node 8XL cluster. XL clusters can contain 1 to 32 nodes while 8XL clusters can contain 2 to 100 nodes.
Amazon Redshift currently supports the following data warehouse node types: