From the course: Complete Guide to the AWS Well-Architected Framework

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Choosing a pricing model

Choosing a pricing model - Amazon Web Services (AWS) Tutorial

From the course: Complete Guide to the AWS Well-Architected Framework

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Choosing a pricing model

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- [Instructor] Pricing is a big concept to understand when working with Amazon compute resources because it's very complicated. When you start and order your first instances, you will be typically using what's called the on-demand pricing. The on-demand pricing, you could think of it as, "I want it, I order it. The current price is what I pay," and this is the default compute pricing model, and you'd be surprised at the number of companies that are using on-demand pricing and also complaining about Amazon being too expensive. It is a flat rate with no commitments. That's why the price is slightly higher. You can use it. You can lose it. You can increase or decrease capacity. You've got a basic price. Now, the usefulness of on-demand is that you might want to spin up a test environment for a short period of time, or maybe short-term use such as scaling applications up and down in a random timeframe. Maybe you need a couple of instances a couple of times a week. You don't know when, so…

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