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.
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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, enabling you to conduct low cost experiments and POCs or to spin up and tear down environments for development or test purposes.
Reserved Instances are appropriate for steady-state production workloads, enabling significant discounts over On-Demand pricing. Customers typically switch to Reserved Instances after running experiments and POCs to validate production configurations. You commit to the entire duration of the Reserved Instance term and pay an upfront charge and a discounted hourly rate as shown below. One Year Reserved Instances provide discounts of up to 41% and Three Year Reserved Instances provide discounts of up to 73% over On-Demand pricing. Amazon Redshift uses Heavy Utilization Reserved Instances, which are billed for every hour during the entire Reserved Instance term. This means you’re charged the hourly fee below regardless of whether any usage has occurred during an hour.
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 DW1.XL and DW1.8XL 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 $2,192 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.