Amazon Redshift has no upfront costs and you can pay as you go. Pricing is simple – you are charged an hourly rate based on the type and number of nodes in your cluster. You can create a cluster using either Dense Storage (DW1) nodes or Dense Compute nodes (DW2). Dense Storage nodes allow you to create very large data warehouses using hard disk drives (HDDs) for a very low price point. Dense Compute nodes allow you to create very high performance data warehouses using fast CPUs, large amounts of RAM and solid-state disks (SSDs).
If you have less than 500GB of data in your data warehouse, your most cost-effective and highest performance option is Dense Compute nodes. Above 500GB, if your primary focus is performance, you can continue with Dense Compute nodes up to hundreds of terabytes, giving you the highest ratio of CPU, Memory and I/O to storage for $5,500/TB/Year (3 Year Reserved Instance pricing). If you want to reduce costs or need to scale further, you can switch to our larger, more cost-effective Dense Storage nodes and scale up to a petabyte or more of compressed user data for under $1,000/TB/Year (3 Year Reserved Instance pricing). Scaling your cluster up and down or switching between node types requires a single API call or a few clicks in the AWS Console.
You have the choice of paying by the hour or committing to a one or three year term to get a significant discount. On-demand pricing enables you to conduct proofs of concept (POC) or other experiments with low commitment, even shutting down clusters after hours or on weekends to minimize costs. Once you stabilize your configuration or go into production, you can get up to a 73% discount by purchasing reserved instances.
If you're new to Amazon Redshift, you may be eligible for a 2 month free trial.