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AWS Cloud Practitioner Test > Billing and Pricing > Flashcards

Billing and Pricing Flashcards

1
Q

You want to run a questionnaire application for only 1 day (without interruption), which Amazon EC2 purchase option should you use?

A

On-demand instances.

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2
Q

What is Amazon EC2 “Reserved Instances” pricing model?

A

1) Type of EC2 instance that provides huge discount (up to 72%) compared to On-Demand pricing.
2) Capacity reservation when used in specific Availability Zone
3) Shortest reservation length is one year
4) Using Convertible Reserved instances provides flexibility to change families, operating systems, and tenancies.

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3
Q

What is Amazon EC2 “On-Demand Instances” pricing model?

A

1) Type of EC2 instance where you pay for compute capacity (increase/decrease) by the hour
2) Pay specific hourly rate for instances used
3) No long-term commitments
4) Free of complexity and maintenance of hardware large cost
5) Smaller variable cost
6) No longer need “Safety Net” capacity to handle spikes.

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4
Q

What is Amazon EC2 “Spot Instances” pricing model?

A

1) Type of EC2 instance that are unused and available in AWS cloud.
2) Provide up to 90% discount compared to On-Demand prices.
3) Reduces cost of running app, growing app’s computing capacity and throughput, and enables new types computing work.

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5
Q

What is Amazon EC2 “Dedicated Instances” pricing model?

A

1) EC2 instances that run in a VPC on hardware dedicated to a single customer.
2) May share hardware with other instances from the same AWS account that are NOT Dedicated Instances.
3) Physically isolated at the host hardware level from instances that belong to other AWS accounts.
4) Pay for Dedicated Instances On-Demand, save up to 70% by purchasing Reserved Instances, or save up to 90% by purchasing Spot Instances.

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6
Q

What is Amazon EC2 “Dedicated Hosts”?

A

1) It’s physical servers fully dedicated for a customer’s use to address corporate compliance requirements
2) Provides visibility and control over how instances are placed on a physical server
3) Same physical server can be used over time.
4) Integrated with AWS License manager, allows customers to use their own software licenses like Windows Server. This saves money.
5) AWS manages administrative tasks on behalf of customer so customer can launch instances seamlessly

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7
Q

Which AWS offering enables customers to find, buy, and immediately start using software solutions in their AWS environment?

A

1) AWS Marketplace
2) Curated digital catalog makes it easy for customers to find, buy, deploy, and manage third-party software and services that customers need.
3) Includes thousands of software listings such as security, networking, storage, machine learning, business intelligence, database, and DevOps.
4) AWS Marketplace also simplifies software licensing and procurement with flexible pricing options and multiple deployment methods. Customers can quickly launch pre-configured software with just a few clicks, and choose software solutions in AMI and SaaS formats, as well as other formats. Flexible pricing options include free trial, hourly, monthly, annual, multi-year, and BYOL, and get billed from one source, AWS.

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8
Q

An organization has decided to reserve EC2 compute capacity for three years in order to get more discounts. Their application workloads are likely to change during this time period. What is the EC2 Reserved Instance (RI) type that will allow them to modify the reservation whenever they need to?

A

1) Convertible RIs
2) Provide a discount (up to 54% off On-Demand)
3) Capability to change attributes of the RI as long as the exchange results in the creation of Reserved Instances of equal or greater value. These attributes include instance family, instance type, platform, scope, and tenancy.

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9
Q

What is a “Standards RI” and pricing?

A

1) Standard RIs provide the most significant discount (up to 75% off On-Demand)
2) Best for steady-state usage.
3) Standard Reserved Instances are not modifiable

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10
Q

What is a “Scheduled RI” and pricing?

A

1) Available to launch within a time windows reserved
2) Allows to match capacity reservation to a predictable recurring schedule that only requires a fraction of a day, a week, or a month.
3) Scheduled Reserved Instances are not modifiable

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11
Q

What EC2 Reserved Instances (RI) are not modifiable?

A

Scheduled RI and Standards RI

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12
Q

What are some billing benefits of Amazon EC2 On-demand instances?

A

1) No long-term commitments
2) No up-front payments
3) Follow pay-as-you-go pricing model
4) charged per second based on hourly rate

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13
Q

You are working on a project that involves creating thumbnails of millions of images; however, consistent uptime is not really an issue, and continuous processing is not required. Which type of EC2 buying option would be the most cost-effective?

A

1) Spot Instances because it’s cost effective discount (up to 90% ) off On-Demand pricing.
2) Cost effective for flexible apps, jobs, etc.
3) If Spot price is greater that specified price/capacity purchased, the instance will be automatically interrupted.

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14
Q

What is AWS pricing model and drivers?

A

1) AWS cloud uses Pay-as-you-go model:
a) no up-front charges or long-term commitments for on-demand resources
b) stop paying for services when you stop using it
c) no termination fees
2) 3 drivers of cost with AWS are:
a) Compute capacity: pay hourly from time a resource is launched until it terminates.
b) Storage: charged by GB.
c) Outbound data transfer: no charge for data transfers INTO AWS cloud or within same region. Outbound data transfers aggregated across services and charged at outbound transfer rate per GB. The more data transferred the less it costs.

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15
Q

What types of Cost Management Services does AWS provide?

A

1) Organize/report/track cost and usage
2) Consolidated billing and access permission.
3) Better planning through budgeting and forecasting
3) Lower cost with resources and pricing optimizations

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16
Q

You have set up consolidated billing for several AWS accounts. One of the accounts has purchased a number of reserved instances for 3 years. What is true about this scenario?

A

All accounts can receive the hourly cost benefit of the Reserved Instances because AWS treats all accounts in an organization as 1 account.

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17
Q

How can you view the distribution of AWS spending in one of your AWS accounts?

A

1) Using AWS Cost Explorer.
2) Free tool to view cost and usage data from 13 months in the past, and forecast of how much likely to use in next 3 months.

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18
Q

What AWS resource can help a customer delve deep into the Amazon EC2 billing activity for the past month?

A

1) The AWS Cost & Usage Reports.
2) Has all detailed information about the AWS cost and usage for each service category used by account and its IAM users in hourly/daily line items.

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19
Q

What is AWS TCO?

A

1) It’s AWS Total Cost of Ownership
2) Calculator for customers to evaluate savings from using AWS and comparing to on-premise/on-location environments
3) Matches current infrastructure to most cost-effective AWS offering.
4) Considers all costs to run solution.

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20
Q

Define AWS Budget resource

A

1) Provides ability to set custom budgets to alert customer when costs/usage exceed (or are forecasted to exceed) the budgeted amount.

21
Q

What are the 10 Use Cases considered in the AWS Cost Management Services? Hint: A, B, C, E, F, I, O, P, R, R

A

1) Access - track billing information for organization in consolidated view
2) Budget - keep spend in check with custom budget threshold and auto-alert notification
3) Control - establish effective governance mechanisms with right guardrails in place
4) Elasticity - scale/schedule services based on expected utilization pattern/needs
5) Forecast - estimate resource utilization/spend with forecast dashboards
6) Inspect - stay up-to-date with resource deployment and cost optimization opportunities
7) Organize - Construct cost allocation and governance foundation
8) Purchase - Leverage free trials and discounts based on workload patterns/needs
9) Report - detail view of cloud spend and allocable cost data
10) Rightsize - align service allocation size to actual workload demand

22
Q

What 2 AWS resources help customers ORGANIZE their cost allocation and governance foundation with their own tagging strategy?

A

1) AWS Cost Allocation Tags

2) AWS Cost Categories

23
Q

What 2 AWS resources help customers REPORT and raise awareness/accountability for their cloud spending with detailed and allocable cost data?

A

1) AWS Cost Explorer

2) AWS Cost and Usage Report

24
Q

What 2 AWS resource give customers ACCESS to track billing information across their organization in a consolidated view?

A

1) AWS Consolidated Billing

2) AWS Credits

25
Q

What 3 AWS resources give customers CONTROL to establish effective governance mechanisms with the right guardrails in place?

A

1) AWS Identity and Access Management
2) AWS Organizations
3) AWS Control Tower

26
Q

What 2 AWS resources help customers FORECAST and estimate the resource utilization and spend with forecast dashboards they can create?

A

1) AWS Cost Explorer Self-Service

2) AWS Budgets Event-Driven

27
Q

What 2 AWS resources help customers BUDGET to keep their spending in check with customer budget thresholds and auto alert notifications?

A

1) AWS Budgets

2) AWS Budget Alert via Chime and Slack

28
Q

What 5 AWS resources allow customers PURCHASE and leverage free trials and programming discounts based on their workload pattern/needs?

A

1) AWS Free Tier
2) AWS Reserved Instances
3) AWS Savings Plans
4) AWS Spot Instances
5) Amazon DynamoDB On-demand

29
Q

What 4 AWS resources give customers ELASTICITY to scale and schedule services based on their expected utilization pattern/needs?

A

1) AWS Instance Scheduler
2) Amazon Redshift pause and resume
3) EC2 Auto Scaling
4) AWS Trusted Advisor

30
Q

What 4 AWS resources allow customers to RIGHTSIZE and align their service allocation size to their actual workload demand?

A

1) AWS Cost Explorer Right Sizing Recommendations
2) AWS Compute Optimizer
3) Amazon Redshift resize
4) Amazon S3 Intelligent Tiering

31
Q

What AWS resource help customers INSPECT and stay up-to-date with their resource deployment and cost optimization opportunities?

A

1) AWS Cost Explorer

32
Q

What are AWS EC2 Pricing Options?

A

1) On-demand: Pay as you go, no upfront, no commitment requirement
2) Reserved Instances: Cost saving sup to ~75%, depending on service (also available RDS, DynamoDB, ElastiCache, Redshift). Requires a 1-year or 3-year term commitment. ll upfront payment, Partial upfront payment, No upfront payment.
3) Spot Instances: Deeply discounted EC2 instances up to 90% savings. Use spare compute capacity, appropriate only for workloads that can be interrupted.
4) Dedicated instances - hardware dedicated to a single customer, instances (licensing, compliance).

33
Q

What is AWS Free Tier?

A

1) Free hands-on experience with AWS platform, products, and services
2) Services that expire 12 months after sign-up: Amazon EC2, Amazon S3, Amazon RDS, Amazon CloudFront.
3) Services that do not expire at end of 12 month: AWS DynamoDB, Amazon Glacier, AWS Lambda

34
Q

What does AWS Support Concierge Service do?

A

1) AWS Support Concierge Service assists customers with account and billing inquiries.
2) Included as part of the Enterprise Support plan, the Support Concierge Team are AWS billing and account experts that specialize in working with enterprise accounts.
3) The Concierge team will quickly and efficiently assist you with your billing and account inquiries, and work with you to help implement billing and account best practices so that you can focus on running your business.
4) Support Concierge service includes:
- 24 x7 access to AWS billing and account inquires.
- Guidance and best practices for billing allocation, reporting, consolidation of accounts, and root-level account security.
- Access to Enterprise account specialists for payment inquiries, training on specific cost reporting, assistance with service limits, and facilitating bulk purchases

35
Q

What are the 4 support plans AWS offers?

A

1) Basic Support = free of charge, for those brand new to AWS cloud
2) Developer Support = Test/Dev workloads
3) Business Support = Production Workloads
4) Enterprise Support = Enterprise Mission Critical workloads

36
Q

What does the Developer Support Plan provide?

A

1) Support via email (only) during business hours
2) General questions, turn-around < 24 hours during business hours.
3) System impaired, turn-around < 12 hours during business hours.
4) Cloud Support Associates provide support.

37
Q

What does the Business Support Plan provide?

A

1) Support via email, phone, or chat (24x7)
2) General questions, turn-around < 24 hours
3) System impaired, turn-around < 12 hours
4) Prod system impaired, turn-around < 4 hours
5) Prod system down <1 hour
6) Cloud Support Engineers provide support.

38
Q

What does the Enterprise Support Plan provide?

A

1) Support via email, phone, or chat (24x7)
2) General questions, turn-around < 24 hours
3) System impaired, turn-around < 12 hours
4) Prod system impaired, turn-around < 4 hours
5) Prod system down <1 hour
6) Mission critical down, turn-around < 15 minutes
7) Cloud Support Engineers, Support Concierge, and Technical Account Manager (TAM) provide support.

39
Q

What are the 7 “core” checks all AWS users get access to with AWS Trusted Advisor?

A

1) S3 Bucket Poermissions
2) Security Groups - Specific Ports Unrestricted
3) IAM Use
4) MFA on Root Account
5) EBS Public Snapshots
6) RDS Public Snapshots
7) Service Limits?

40
Q

Which AWS Support Plans have access to “core” checks with AWS Trusted Adisor?

A

1) Business and Enterprise Support Plans.

41
Q

How does AWS Trusted Advisor compare to Amazon Inspector?

A

1) Trusted Advisor analyzes the entire AWS account environment, while Inspector only analyzes EC2 instances (apps and network access).
2) Trusted Advisor reports findings through email (requires opt-in), dashboard, or API (for Buss/Enterp. support only), while Inspector reports findings through API or dashboard.
3) Trusted Advisor does not require agent installation, while Inspector does.
4) Trusted Advisor is FREE of cost, while Inspector cost depends on number EC2 and rules involved.

42
Q

How are AWS customers billed for Linux-based Amazon EC2 usage?

A

EC2 instances will be billed on one second increments, with a minimum of one minute.

43
Q

What is the AWS EC2 pricing model?

A

1) Pricing is per instance-hour for each instance, from the time an instance is launched until it is terminated or stopped.
2) For Linux or Ubuntu Instances, each partial instance-hour consumed will be billed per-second (minimum of 1 minute)
3) For other instance types, each partial instance-hour consumed will be billed as a full hour.
4) Per-second billing is available for instances launched in:
- On-Demand, Reserved and Spot forms
- All regions and Availability zones
- Amazon Linux and Ubuntu

44
Q

What are the 3 payment options when purchasing a Standard or Convertible Reserved Instance?

A

1- No Upfront:

      No upfront payment is required. You are billed a discounted hourly rate  for every hour within the term, regardless of whether the Reserved Instance is being used. No Upfront Reserved Instances are based on a contractual obligation to pay monthly for the entire term of the reservation. A successful billing history is required before you can purchase No Upfront Reserved Instances.

2- Partial Upfront:

       A portion of the cost must be paid up front and the remaining hours in the term are billed at a discounted hourly rate, regardless of whether you’re using the Reserved Instance.

3- All Upfront:

       With the All Upfront option, you pay for the entire Reserved Instance term with one upfront payment. This option provides you with the largest discount compared to On-Demand instance pricing.
45
Q

Which reserved instance payment option result in you paying a discounted hourly rate throughout the duration of the term? (Choose two)

A

No Upfront and Partial Upfront.

46
Q

When using the AWS TCO tool (Total Cost of Ownership), what information is required to calculate the potential savings of using AWS vs. on-premises?

A

The number of on-premise virtual machines.
The AWS TCO tool does not ask you to provide information about your current power and cooling consumption, data center space, IT labor costs. The AWS TCO tool estimates these costs based on specific assumptions for on-premises, co-location, and AWS environments.

47
Q

What is the AWS service that enables you to manage all of your AWS accounts from a single master account?

A

AWS Organizations is an account management service that enables you to consolidate multiple AWS accounts into an organization that you create and centrally manage.

AWS Organizations enables the following capabilities:

1- Automate AWS account creation and management

2- Consolidate billing across multiple AWS accounts

3- Govern access to AWS services, resources, and regions

4- Centrally manage access policies across multiple AWS accounts

5- Configure AWS services across multiple accounts

48
Q

What will impact the price paid for an EC2 instance (6)?

A

EC2 instance pricing varies depending on many variables:

1) The buying option (On-demand, Reserved, Spot, Dedicated)
2) Selected Amazon Machine Imaging (AMI)
3) Selected instance type (size)
4) Region
5) Data Transfer in/out
6) Storage capacity.

AWS Cloud Practitioner Test (6 decks)

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