Billing and Pricing Flashcards

1
Q

What is AWS’s 5 pricing policies

A

1) Pay as you go
2) Pay less when you reserve (longer contract = greater saving)
3) Pay less per unit by using more
4) Pay even less as AWS grows
5) Custom pricing

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2
Q

What is the difference between OPEX and CAPEX

A

CAPEX: Stands for Capital expenditure which is where you pay upfront. Its a fixed, sunk cost
OPEX: Stands for Operational expenditure which is where you pay for what you use (think utility billing)

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3
Q

What are AWS 4 best practices and key principles for pricing models?

A

1) Understand the fundamentals of pricing. You pay for compute, storage and data outbound (not data inbound)
2) Start early with cost optimization. Adopting cloud required technical and organisational evolution. Put cost visibility and control mechanisms in place before the env grows large and complex
3) Maximise the power of flexibility. AWS services are priced independently and transparently, so you pay for what you need. No contracts are required unless you choose to save through reservation. Paying on an as-needed basis means you can focus on your innovation and be fully elastic. You dont pay for services when you dont need them
4) Use the right pricing model for the job. AWS offers several pricing models depending on the product: on demand, dedicated instances, spot, reserved

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4
Q

What is the AWS Free Tier

A

To help new AWS customers get started in the cloud. You can run a free Amazon EC2 microinstance for a year while leveraging S3, EBS, Load balancing and other services

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5
Q

Which AWS services are free (7)

A

1) Amazon VPC (whenever you provision an EC2 this sits in a VPC)
2) Elastic beanstalk (but resources provisioned are not)
3) CloudFormation (but resources provisioned are not)
4) IAM
5) Autoscaling (pay for EC2 it provisions)
6) Opsworks (Dev ops products. Pay for resources provisioned)
7) Consolidated billing

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6
Q

EC2: what determines price?

A

1) Clock hours of server time (instance type determines pay per hour/second)
2) Instance type (FIGHTDRMCPXY)
3) Pricing model (spot, reserved, on demand, dedicated)
4) Load balancing
5) Detailed monitoring (standard monitoring is every 5 mins, detailed every 1 min)
6) Autoscaling (more than one EC2)
7) Operating systems and software packages

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7
Q

What are the 4 EC2 pricing models

A

1) On demand
2) Reserved
3) Spot
4) Dedicated Host

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8
Q

What is EC2: On Demand pricing model and use case?

A

Pay fixed rate by hour/second with no commitment
Use case: Users wanting low cost and flexibility without up-front payments and commitment, apps with short term unpredicatable workloads that cant be interrupted, or applications being developed/tested for the first time

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9
Q

What is EC2: Reserved pricing model and use case?

A

Provides you with capacity reservation and offer a significant discount. Contracts terms are 1-3 year. Pay less for longer contracts and upfront
Use case: Apps with steady state/predictable usage, applications that require reserved capacity or users able to make upfront payments to reduce costs further

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10
Q

What is EC2: Spot pricing model and use case?

A

Enables you to bid the price you want for instance capacity, providing cost savings if your applications have flexible start/end times. When the price is above your bid, you lose the server
Use case: applications with a flexible start and end time, users with urgent computing need for large amounts of additional capacity, or apps only feasible at low computer prices e.g. genomics companies do work in the middle of the night

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11
Q

What is EC2: dedicated hosts pricing model and use case?

A

Physical EC2 servers dedicated for your use. Help reduce costs by allowing you to use existing server bound software licenses. Can be purchased on demand (hourly) or reserved (70% off)
Use case: useful for regulatory requirements that may not support multi-tenant virtualisation, licensing which does not support multi tenancy or cloud deployments.

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12
Q

For EC2: reserved instanced, what are the possible savings?

A

1 year contract
No upfront - $0 upfront, $44.53 monthly - 36% savings over on demand
Partial upfront - $256 upfront, $21.17 monthly - 39% savings
All upfront - $501 upfront, $0 monthly, 40% savings

3 year contract
No upfront - $0 upfront, $30.55 monthly - 56 savings over on demand
Partial upfront - $515 upfront, $14.60 monthly - 59% savings
All upfront - $968 upfront, $0 monthly, 62% savings

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13
Q

Lamdba: what determines price?

A

1) Requests
1 million per month free. $0.2 per 1 million thereafter
2) Duration
400000GB/s free per month, up to 3.2 million seconds. 0.0000016 every GB/second thereafter
3) Additional charges
If lambda uses other AWS services or transfers big data

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14
Q

EBS: what determines price?

A

1) Volume (per GB)
2) Snapshots (per GB)
3) Data transfer

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15
Q

S3: what determines price?

A

1) Storage class (Standard, IA, 1AZ IA)
2) Storage amount
3) Data transfer

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16
Q

Glacier: What determines price:

A

1) Storage
2) Data retrieval time
Expedited: 1-5 mins, $0.3 per GB, on demand - $0.01 per request, provisioned - $100 per provisioned capacity unit
Standard: 3-5 hours, $0.01 per GB, $0.05 per 1000 requests
Bulk: 5-12 hours, $0.0025 per GB, $0.25 per 1000 requests

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17
Q

Snowball: what determines price

A

1) Service fee per job
50TB = $200
80TB = $250
2) Daily charge
First 10 days free, after is 15 dollars a day
3) Data transfer
Data transfer to S3 is free. Data transfer out is not

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18
Q

RDS: what determines pricing

A

1) Clock hours of server time
2) Database characteristics (e.g. type, SQL)
3) Database purchase type
4) Number of database instances
5) Provisioned storage (size in GB)
6) Additional storage
7) Requests
8) Deployment types
9) Data transfer

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19
Q

DynamoDB: what determines pricing

A

1) Provisioned throughput - write
2) Provisioned throughput - read
3) Indexed data storage - charges hourly rate per GB disk space table consumes

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20
Q

CloudFront: what determines pricing

A

1) Traffic Distribution
2) Requests
3) Data transfer out

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21
Q

What is AWS budgets?

A

Gives ability to set custom budgets that alert you when your cost or usage (or are foretasted to exceed) your budgeted amount. Used to budget/predict costs BEFORE they have been incurred

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22
Q

What is AWS cost explorer?

A

Easy to use interface that allows you to visualize, understand and manage your AWS costs and usage over time. Used to explore costs AFTER they have been incurred

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23
Q

What are the 4 AWS support plans

A

1) Basic
2) Developer
3) Business
4) Enterprise

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24
Q

What does the basic support plan include?

A

Cost: Free
Tech support: NA
TAM: NO
Who can open cases: none

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25
Q

What does the developer support plan include?

A

Cost: $29 a month (scales based on usage)
Tech support: Business hour access via email
TAM: no
Who can open cases: 1 person, unlimited cases

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26
Q

What does the business support plan include?

A

Cost: $100 a month (scales based on usage)
Tech support: 24/7 email, chat, phone
TAM: No
Who can open cases: unlimited contacts, unlimited cases

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27
Q

What does the enterprise support plan include?

A

Price: $15000 a month
Tech support: 24/7 email chat and phone
TAM: Yes
Who can open cases: Unlimited contacts, unlimited cases

28
Q

What is the basic support plan response times?

A

NA

29
Q

What is the developer support plan response times?

A

General: <24 business hours

System impaired: <24 hours

30
Q

What is the business support plan response times?

A

General: <24 hours
System impaired: <13 hours
Production system impaired: <4 hours
Production system down: <1 hour

31
Q

What is the enterprise support plan response times?

A
General: <24 hours 
System impaired: <13 hours 
Production system impaired: <4 hours 
Production system down: <1 hour
Business critical system down: <15 mins
32
Q

What is tagging?

A

Tags are key value pairs attached to AWS resources. Contain metadata (data about data). These can be inherited e.g. if you use a CloudFormation to provision resources all with a certain tag, or contain specific information

33
Q

What is a resource group service?

A

Makes it easy to group your resources using the tags that are assigned to them, based on one or more tags e.g. region, name, department, employee ID. This makes it possible to apply automation to resource groups e.g. stop all EC2 instances in a give region.
Using resource groups in combination with AWS systems manager allows you to control and execute automation against entire EC2 fleets at the push of a button

34
Q

What is Tag editor service?

A

Global service that allows us to discover resources and add additional tags to them as well.
Note: newer regions may take some time to become compatible with Tag editor

35
Q

What are AWS organisations?

A

Account management service that enables you to consolidate multiple AWS accounts into an organisation that you create and can centrally manage. Available at two levels:

1) All features
2) Consolidated billing only

36
Q

What are organisational unites?

A

Units within an organisation e.g. finance, developers, prod, test

37
Q

Explain policies within an organisation

A

You can apply policies to an OU or to an AWS account directly e.g. prevent developers provisioning EC2 instances.

38
Q

Explain a root account

A

This is the base account of the organisation

39
Q

What is the benefit of organisations

A

You will get economies of scale and get consolidated billing.

40
Q

Explain how consolidate billing works (in terms of S3)

A

If you have a paying account (independent, cannot access resources of other accounts), which manages 3 linked accounts (all independent), you will receive one consolidated bill across all 3 accounts. Instead of paying each storage amount separately, you can take advantage of tiered S3 pricing (cheaper the more you use) to accumulate the storage amount and pay less

41
Q

What is the limit for consolidated billing

A

20, but this is a soft limit and can apply to increase this limit

42
Q

What are the benefits of consolidated billing?

A

1) One bill per AWS account
2) Easy to track charges and allocated costs
3) Volume pricing discount

43
Q

Explain how consolidated billing works (in terms of Ec2)

A

If you have a paying account, and Test is using 6 on demand instances, and Prod has reserved 5 instances but are only using 3, the paying account will be billed for all 5RIs and only 4 on demand instances

44
Q

What are the best practices with AWS organisations?

A

1) Always enable MFA on root account
2) Always use strong and complex password on root account
3) Paying account should be used for billing purposes only, do not deploy resources on this account

45
Q

Recap: what is the difference between CloudTrail and CloudWatch?

A

CloudWatch is a performance monitoring service (e.g. CPU)
CloudTrail monitors API calls in the AWS platform and is used for auditing (logging events tool). Is on a per account and per region basis

46
Q

How can you use CloudTrail with AWS organisations

A

Activate CloudTrail on the paying account, which will consolidate logs in an S3 bucket. Create bucket policy allowing cross account access. Turn on CloudTrail in other accounts and use the bucket in the paying account to consolidate these

47
Q

How do billing alerts work in organisations?

A

Can set up billing alerts in the paying account, which will alert for all linked accounts. Can still create billing alerts on individual account basis

48
Q

How do you create an organisation?

A

1) Create organisation
2) Add additional accounts
3) Add OUs (Developers, HR, sales)
4) Add policies to OUs (full access, block EC2 provisioning)
5) Move accounts to OUs
6) Attach and detach service control policies
7) If you create an organisation as a root account you cant invite another root account

49
Q

What is AWS Quick Starts

A

Way of deploying environments quickly using CloudFormation templates built by AWS Solutio Architects who are experts in the technology e.g. blockchain, data lakes, IOT
Remember: the service is free but the resources it provisions are not

50
Q

What is AWS Landing Zones?

A

Allows you to set up a secure, multi-account AWS environment at the click of a button based on AWS best practices. Starts with 4 AWS accounts: AWS organisation account, shared services account, log archive account and security account. Automates multiple account set up

51
Q

What are the two types of AWS calculators?

A

1) AWS simple monthly calculator

2) AWS total cost of ownership calculator

52
Q

What is the AWS simple monthly calculator

A

Hosted as a static webpage on S3, tells you how much you will pay for resources on a monthly basis
Add resources as a row and nominate usage and type to calculate
Allows you to estimate costs
This means, if you use reserved instance the calculator would show $0

53
Q

What is AWS total cost of ownership calculator?

A

Gives you the total saving of having servers on cloud vs on prem. AWS helps reduce total cost of ownership by reducing the need to invest in large capital expenditures and providing a pay as you go model. Breaks savings down into:
1) Server costs
2) Storage costs
3) Network costs
4) IT labour costs
Produces reports and enables you to make a business case to move to the cloud

54
Q

Which support plan features access to AWS support during business hours via email?

A

Developer

55
Q

Which support plans feature a <4 hour response time in the event of impaired production system?

A

Business and Enterprise

56
Q

True or False: With consolidated billing, the paying account ca make changes to any of the resources owned by a linked account

A

False

57
Q

Which EC2 instance type will realize a saving over time in exchange for a contracted term-of-service?

A

Reserved

58
Q

Which is not a fundamental AWS charge?

Compute, storage, data in, data out

A

data in

59
Q

By Default, what is the max number of linked account per paying account under consolidated billing?

A

20

60
Q
Which affect your billing for RDS?
Data transfer in 
Number of requests 
Additional storage 
Standby time 
Clock Hours of server time
A

Number of requests, additional storage and clock hours of server time

61
Q

What is a resource group?

A

A collection of resources that share on or more tags

62
Q

What are the 4 EC2 pricing options?

A

On demand, reserved, spot, dedicated host

63
Q

What are cost allocation tags?

A

A tag is a label that you or AWS assigns to an AWS resource. Each tag consists of a key and a value. For each resource, each tag key must be unique, and each tag key can have only one value. You can use tags to organize your resources, and cost allocation tags to track your AWS costs on a detailed level. After you activate cost allocation tags, AWS uses the cost allocation tags to organize your resource costs on your cost allocation report, to make it easier for you to categorize and track your AWS costs.

64
Q

our Project Manager needs to know the daily spend of the company’s AWS account over the last 60 days to consider creating and implementing cost-effective measures. What should you do?

Direct him to AWS Budgets.

Direct him to Monthly Spend by Service View in AWS Cost Explorer.

Direct him to Daily Spend View in AWS Cost Explorer.

Direct him to Monthly Spend by Linked Account View in AWS Cost Explorer.

A

Direct him to Daily Spend View in AWS Cost Explorer.

65
Q

Which of the following are payment options for Reserved Instances?

MURI

DURI

AURI

PURI

NURI

A

Reserves instances are available with all upfront, partial upfront, or no upfront (AURI, PURI, and NURI) pricing

66
Q

How many elastic IP addresses can you associate with a running EC2 instance with no charge?

A

1