# Module 2 - Cloud Economics and Billing

# Section 1: Fundamentals of pricing
## AWS pricing model
Three fundamental drivers of cost with AWS:
1. Compute
* Charged per hour/second
* Varies by instance type
2. Storage
* Charged typically per GB
3. Data transfer
* Outbound is aggregated and charged
* Inbound has no charge (with some exceptions)
* Charged typically per GB

## How do you pay for AWS ?

## Pay for what you use
Pay only for the servuces that you consume, with no large upfront expenses

## Pay less by using more
Realize volume-based discounts:
* **Savings** as usage increases
* **Tiered pricing** for services like Amazon Simple Storage Service (Amazon S3), Amazon Elastic Book Store (Amazon EBS) or Amazon Elastic File System (Amazon EFS) $\rightarrow$ the more you use, the less you pay per GB
* Multiple storage service deliver **lower** storage costs based on needs

## Pay even less as AWS Grows
* AWS focuses on lowering cost of doing business
* This pratice results in AWS passing savings from economies of scale to you
* Since 2006, AWS has **lowered pricing 75** times (as of Septembre 2019)
* Future higher-performing resources replace current resources for no extra charge

## Custom pricing
* Meet varying needs through custom pricing
* Available for high-colume projects with unique requirements

## AWS Free Tier
Enables you to gain free hands-on experience with the AWS platform, products and services. Free for 1 year for new customers

## Services with no charge

# Module 2: Total cost of Ownership
## On-premises versus cloud

## What is Total Cost of Ownership (TCO) ?
:::warning
**Total Cost of Ownership (TCO)** is the financial estimate to help identify direct and indirect costs of a system.
:::

Why use TCO ?
* To compare the costs of running an **entire infrastructure environmnet of specific workload** on-premises versus on AWS
* To budget and **build the business case** for moving to the cloud

## TCO Consideration

## On-premises versus all-in-cloud
You cloud cave up to **96 percent** a year by moving your infratstructure to AWS. Your 3-year total savings would be **\$159,913**

## AWS Pricing Calculator
Use the **AWS Pricing Calculator** to:
* Estimate monthly costs
* Identify opportunities to reducse monthly costs
* Model your solutions before building them
* Explore price points and calculations behind your estimate
* Find the available instance types and contract terms that meet your needs
* Name your estimate and create name **groups** of services

## Reading an estimate
Your estimate is broken into:
* first 12 months total
* total upfront
* total monthly


## Additional benefit considerations
:::info
* Cloud Total Cost of Ownership: what will be spent to run the solution
* Return on Investement analysis (ROI): determine the value generated while considering savings $\rightarrow$ *soft* and *hard* benefits
:::
|**Hard benefits**|**Soft benefits**|
|---|---|
|Reduced spending on compute, storage, networking, security|Reuses of service and applications that enabl you to define (and redefine solutions) by using the same cloud service|
|Reductions in hardware and softare purchases (capex)|Increased developer productivity|
|Reductions in operational costs, backup, and disaster recovery|Improved customer satisfaction|
|Reduction in operations personnel|Agile business processes that can quickly respond to new and emerging opportunities|
||Increase in global reach|

## Case study: Delaware North
Background:
* Growing global company with over 200 locations
* 500 million customers: \$3 billion USD annual revenue

Challenge:
* Meet demand to rapidly deploy new solutions
* Constantly upgrade aging equipment

Criteria:
* Have a broad solution to handle all workloads
* Be able to modify processes to improve efficiency and lower costs
* Eliminate busy work (such as patching software)
* Achieve a positive return on investment (ROI)

Solution:
* Move their on-premises data center to AWS
* Eliminated 205 servers (90%)
* Moved nearly all aplications to AWS
* Used 3-year Amazon ECE2 Reserved Instances

### Cost comparison

### Results

# Section 3: Billing
:::info
AWS Organizations: account management service to consolidate multiple AWS accounts
:::

* a branch can have only one parent

## Key features and benefits
* Policy-base account management
* Group based account management
* APIs that automate account management
* Consolidate billing

## Security with AWS Organizations
* Control access with AWS Identity and Access Management (IAM)
* IAM policies enable you to allow or deny access to AWS services for users, groups and roles
* Service control policies (SCPs) enable you to allow or deny access to AWS services for individuals or group accounts in an organizational unit (OU)

## Organization setup

## Accessing AWS Organizations
* AWS Management Console
* AWS Command Line Interface (AWS CLI) tools
* Software development kits (SDKs)
* HTTPS Query application programming interfaces (API)

# Section 4: AWS Billing and Cost Management
## AWS Billing Dashboard

Spend summary: how much you spent last month
Month-to-Date spend by service: services most used

## Tools
* AWS Budgets
* AWS Cost and Usage Report
* AWS Cost Explorer

## Monthly bills

## Cost Explorer

## Forecast and track costs

## Cost and usage reporting

# Section 5: Technical Support Models
## AWS Support
* Provide unique combination of tools and expertise:
* AWS Support
* AWS Support Plans
* Support is provided for:
* Experimenting with AWS
* Production use of AWS
* Business-critical use of AWS
* Proactive guidance
* Technical Account Manager (TAM)
* Best practices:
* AWS Trusted Advisor
* Account assistance
* AWS Support Concierge

## Support plans
AWS Support offers four support plans:
* **Basic Support**: Resource Center access, Service Health Dashboard, product FAQs, discussion forums, and support for health checks
* **Developper Support**: Support for early development on AWS
* **Business Support**: Customers that run production workloads
* **Entreprise Support**: Customers that run business and mission-critical workloads

## Case Severity and response times

# Wrap-up
# Sample exam question
Which AWS service provides infrastructure security optimization recommendations ?
1. AWS Price List Application Programmin Interface (API)
2. Reserved Instances
3. AWS Trusted Advisor
4. Amazon Elastic Comput Cloud (Amazon EC2) Spot Fleet

:::spoiler Answer
Keyword: recommendations

Answer: 3.
:::