Welcome.

This video will cover the fundamentals of AWS pricing.

There are three fundamental drivers of cost with AWS compute, storage, and outbound
data transfer.
These properties change a bit depending on the AWS product.
In most cases, there is no charge for inbound data transfer.
Data that you put into AWS is free.
Also, data transfer between services in the same region is free for outbound data
transfers.
It is aggregated across services and then charged at the outbound data transfer rate.
This charge appears on the monthly statement as AWS data transfer out.
While the number of services have increased dramatically, our philosophy on pricing has
not changed.
At the end of each month you pay for what you use.
You can start or stop using a service at any time.
There are no long term contracts required.
For each service you pay exactly for the amount of resources that you actually use.
This utility style pricing model dictates that you pay for what you use, pay less when you
use more, and pay even less as AWS grows.
We will now take a closer look at the core concepts of pricing in terms of implementing a
data center.
You might have spent too much time and money building them.
With AWS, you pay only for the services that you consume with no large upfront
expenses.
You can lower operational costs, so you no longer need to dedicate valuable resources to
building cost infrastructure.
This will save you from purchasing servers or leasing facilities.
You can then focus on innovation for your business by paying only for what you use and
for as long as you use it.
All services are available on demand, require no upfront payment or long term contracts.
You can get volume based discounts and realize important savings as your usage
increases.
For services like Amazon S3, pricing is tiered, which means that you pay less per GB
when you use more.
You benefit from the economies of scale that enable you to increase adoption and keep
costs under control.
As your organization evolves, AWS provides services to help you meet your needs.
For example, AWS Storage Services offers options to help you lower pricing based on
how frequently you access your data.
To optimize your savings, you can choose the right combination of storage solutions
while preserving performance, security and durability.
AWS constantly focuses on reducing costs and improving operational efficiencies.
These optimizations and the growing economies of scale result in savings back to you.
AWS has lowered pricing 75 times as of September 2019.
Another benefit of AWS growth is that future higher performing resources replaced
current ones for no extra charge.
AWS realizes that every customer has different needs.
If none of the AWS pricing models work for your project, custom pricing is available for
high volume projects with unique requirements.
To help new AWS customers get started in the cloud, AWS offers the AWS free tier for up
to one year.
If you are a new AWS customer, you can run a free Amazon EC2T2 micro instance for a
year free of charge, while also using a free usage tier for Amazon S3 and for Amazon
EBS for storage and other AWS services.
AWS also offers services for no additional charge, such as Amazon DPC, AWS Elastic
Beanstalk, auto scaling.
AWS Cloud Formation and AWS Identity and Access Management.
There is no charge for these services, but there must be charges associated with the
resources they provision.
For example, we automatically scale additional PC2 instances.
There will be charges for those instances.
The auto scaling service is free.
Thanks for watching.
We'll see you in the next video.

Welcome to Section 2, Total cost of ownership.

Many businesses ask how do you compare on-premises versus cloud implementations?
The difference between these two options is how they're deployed.
An on-premises infrastructure is installed on a company's own computers and servers.
There are several fixed costs, also known as capital expenses.
They're associated with traditional infrastructure.
Capital expenses include facilities, hardware, licenses and maintenance staff.
Scaling up can be expensive and time consuming.
Scaling down does not reduce fixed costs.
A cloud infrastructure is purchased from a service provider who builds and maintains the
facilities, hardware and maintenance staff.
A customer pays for what is used.
Scaling up or down is simple.
Costs are easy to estimate because they depend on services.
It is difficult to compare an on-premises IT delivery model with a WS cloud.
The two are different because they use different concepts and terms.
To evaluate an on-premise solution, consider capital expenditure and long planning
cycles.
This model requires multiple components to buy, build, manage and refresh resources
over time.
Evaluation of a WS cloud involves a discussion about flexibility, agility and consumption
based costs.
So how can you identify the best option?
You can identify the best option by comparing the on-premises solution to a cloud
solution.
Total cost of ownership or TCO is a financial estimate intended to help buyers and
owners determine the direct and indirect cost of a product or system.
TCO includes the cost of a service plus all the costs that are associated with owning a
service.
In the cloud environment, TC always used to compare the cost of running an entire
infrastructure environment for a specific workload in an on-premises or location facility
to the same workload running on a cloud-based infrastructure.
Companies use this comparison for budgeting purposes when they make decisions about
the optimal deployment solution.
Some of the costs associated with data center management include server costs for both
hardware and software and facilities to house the equipment, storage costs for the
hardware administration facilities, network costs for hardware administration facilities
and IT labor costs that are required to administer the entire solution.
When you compare an on-premises to a cloud solution, it is important to accurately
assess the true cost of both options.
With the cloud, most costs are up front and readily calculated.
For example, cloud providers give transparent pricing based on different usage metrics
such as RAM, storage and bandwidth among others.
Pricing is often fixed per unit of time.
Customers gain certainty over pricing and are then able to readily calculate cost based on
several different usage estimates.
Compare this process to on premises technology.
Though they're sometimes difficult to determine, calculations of in-house cost must take
into account both direct costs of the company running a server like power, force based
storage and IT operations and manage those resources as well as indirect cost of running
a server like network and storage infrastructure.
This diagram is conceptual and it does not include every cost item.
Depending on the solution you're implementing, software cost can include database,
management and middle tier costs.
Facilities costs can include upgrades, maintenance, building security, taxes, and so on.
IT labor costs can include security administration and application administration costs.
This diagram includes an abbreviated list to demonstrate the type of costs that are
involved in data center maintenance.
Here's a sample cost comparison.
This example shows a cost comparison for an on premises solution and a cloud solution
over three years.
For this comparison, two similar environments were constructed to represent the on
premises and AWS environments.
Additional direct and indirect costs are associated with the on premises solution not
included.
The components of the on premises solution include one virtual machine with four CPUs,
16 gigabytes of RAM and a Linux operating system.
Average utilization is 100% optimized by RAM.
The components of a comparable AWS environment include one M4 large instance with
four CPUs 16 gigabytes of RAM and instant type is a three-year partial up front reserve.
For instance, the on-premises three-year total cost is $167,422.
The AWS cloud three-year total cost is $7509, which is a 96% savings over the on-
premises solution.
Plus the three-year total savings using cloud infrastructure would be $159,913.
This comparison helps the business clearly understand the differences between
alternatives.
What is the difference in the cost?
Remember, the on-premises solution is predictive.
It continues to incur costs whether the capacity is used.
In contrast, the AWS solution is commissioned when needed and deconditioned when the
resources are no longer in use, which results in lower overall costs.
AWS offers the AWS pricing calculator to help you estimate a monthly AWS bill.
You can use this tool to explore AWS services and create an estimate for the cost of your
use cases on AWS.
You can model your solution before building that, explore the price points and
calculations behind your estimate and find the available instance types and contract terms
that meet your needs.
This enables you to make informed decisions about using AWS.
You can plan your AWS cost and usage or price out setting up a new set of instances and
services.
The AWS pricing calculator helps you estimate monthly costs of AWS services, identify
opportunities for cost production and model your solutions before building them.
It also allows you to explore price points and calculations behind your estimates and find
the available instance types and contract terms that meet your needs.
The AWS pricing calculator enables you to name your estimate and to create and name
groups of services.
Groups are containers that you add services to in order to organize and build your
estimate.
You can organize your groups and services like cost center, department, product
architecture, and so forth.
AWS pricing calculator estimates are displayed in multiple ways.
The total for your first 12 months is the total estimate for your current group and all of
the services and groups in your current group.
It combines the upfront and monthly estimates.
Your total upfront is how much you're estimated to pay upfront as you set up your AWS
app.
Your total monthly is the monthly estimated spend while you run your AWS app.
Within a group, you can see the estimated cost for each service.
If you want to price out different ways to build your AWS setup, you can use different
groups for each variation of your setup and compare the estimates for the different setups.
Hard benefits include reduced spending on compute, storage, networking, and security.
They also include reductions in hardware and software purchases, reductions in
operational costs, backup and disaster recovery, and a reduction in operations personnel.
Cloud total cost of ownership defines what will be spent on the technology after adoption
or what it costs to run the solution.
Typically a TCO analysis looks at the as is on premises infrastructure and compares it
with the cost of the 2B infrastructure state in the cloud.
While this difference might be easy to calculate, it might only provide a narrow view of
the total financial impact of moving to the cloud.
A return on investment analysis, or ROI, can be used to determine the value that is
generated while considering spending and savings.
This analysis starts by identifying the hard benefits in terms of direct and visible cost
reductions and efficiency improvements.
Next, soft savings are identified.
Soft savings are value points that are challenging to accurately quantify, but they can be
more valuable than the hard savings.
It's important for you to understand both hard and soft benefits understand the full value
of the cloud.
Soft benefits include reusing services and applications that enable you to define and
redefine solutions by using the same cloud service.
There is also an increase in developer productivity as well as improved customer
satisfaction.
Further, agile business processes can quickly respond to new and emerging opportunities
and allow increased global reach.
Thanks for watching.
We'll see you in the next video.

this video will review a case study on the total cost of ownership for Delaware North, a
major food and hospitality company.
Delaware North originated in 1915 as a cleanup and hotcorn concession center.
Today it's a leader in the food service and hospitality industry.
Delaware N serves more than 500 million customers annually at more than 200 locations
around the world, resulting in 3 billion in annual sales.
The company's on-premises data center was becoming too expensive and inefficient to
support its global business operations.
Delaware N had to constantly upgrade aging equipment in order to rapidly deploy new
solutions to meet customer requirements.
The CIO stated Delaware N needed to find a better solution.
They turned to AWS.
In 2013, Delaware N migrated 50 websites to AWS as a test bed.
They conducted an evaluation to see if they could move all of their workloads to AWS.
The evaluation process centered on 3 criteria.
First, a cloud solution needed a broad set of technologies that could handle all Delaware
N enterprise workloads while delivering support for critical functions.
From an operational perspective, Delaware N wanted the features and flexibility to
modify core IT processes to improve efficiencies and lower costs.
Finally, financial requirements needed to demonstrate a return on investment for moving
away from their existing data center environment.
A cost comparison completed by Delaware N demonstrated that it could save $3.5 million
based on a five year run rate by moving its on premises data center to AWS.
Their CIO noted that the technology stack available on a WS was more than sufficient to
meet the company's technical requirements.
Delaware N saved at least 3.5 million 5 years by reducing their server hardware by more
than 90%.
The most dramatic physical change was elimination of 205 servers.
Everything that ran on that hardware was migrated to a WS.
About 6 months into its cloud migration, Delaware N realized benefits to its data center
consolidation, security compliance, disaster recovery and faster deployment time for new
services.
By leveraging the security best practices of a WS, Delaware N was able to eliminate a lot
of compliance tasks that in the past took up valuable time and money.
The solution helps Delaware N operate with greater speed and agility.
It used to take between two and three weeks to provision new business units.
Now it only takes one day.
Thanks for watching.
We'll see you in the next video.

Welcome.
This video will cover AWS Organizations.
Depending on the size of your business, sometimes it is easier to assign separate AWS
accounts to each department or team.
This will allow for the spending of each group to have a clear and defined report about
their use and expenses.
When this happens, we need a service which ties all of these separate accounts together.
We use AWS Organizations for consolidated billing of multiple accounts.
AWS Organizations is a free account management service that enables you to.
Consolidate multiple AWS accounts, input organizational trees with each branch
representing a partner or team.
AWS organizations include consolidated billing and organization security management
capabilities.
Here's some terminology to understand the structure of AWS organizations.
The diagram shows a basic organization or root that consists of seven accounts that are
organized into four organizational units, or OU.
An OU is a branch or account.
A branch can also contain other branches, no different than a regular tree.
This hierarchy is like an upside down tree with a root at the top.
A branch can have only one parent, and each account can be a member of exactly 1
branch.
An account is a standard AWS account that contains your AWS resources.
In general, AWS Organizations enables you to do more than just consolidate accounts for
billing.
You can also use it to apply security controls to one or more of the accounts represented.
AWS Organizations does not replace associating AWS identity and access management
policies with users, groups and roles within an AWS account.
With IAM policies, you can allow or deny access to AWS services.
An IAM policy can be applied only to IAM users, groups or roles, and it cannot restrict
the AWS account itself.
In contrast with organizations, you use service control policies to allow or deny access to
particular AWS services for AWS accounts directly or as a group of accounts in a branch.
The specified actions from an attached service control policy affect the entire account,
including all I am users, groups and roles to the account.
It also includes the AWS account group user.
Keep in mind that this process assumes that you have access to two or more existing
AWS accounts and that you can sign into each account as an administrator.
Review these steps for setting up AWS organizations.
Step one is to create your organization with your current AWS account as a primary
account.
You also invite one AWS account to join your organization and create another account as
a member account.
Step 2 is to create 2 organizational units in your new organization and place the member
accounts in those OUS.
Step three is to create service control policies which enable you to apply restrictions to
what actions can be delegated to users and roles in the member accounts.
A service control policy is a type of organizational control policy.
Step 4 is to test your organization's policies, sign in as a user for each of the roles such as
OU1 or OU2 and see how the service control policies impact account access.
Alternatively, you can use the IAM policy simulator to test and troubleshoot IAM and
resource based policies that are attached to IAM users, groups or roles in your AWS
account.
Like other services, AWS organizations can be managed through different interfaces.
The AWS Management Console is a browser-based interface that you can use to manage
your organization and your AWS resources.
You can perform any task in your organization by using the console.
AWS command line interface tools enable you to issue commands at your system's
command line to perform AWS organization tasks.
This method can be faster and more convenient than using the console.
You can also use AWS software developing kits to handle tasks such as cryptographically
signing requests, managing errors, and retrying requests automatically.
AWS SDKS consist of libraries and sample code for various programming languages and
platforms such as Java, Python, Ruby, Net, iOS, and Android.
The AWS Organization's HTTPS Query API gives you programmatic access to AWS
organizations.
You can use the API to issue HTTPS requests directly to the service.
When you use the HTTPS API, you must include code to digitally sign requests by using
your credentials.
Thanks for watching.
We'll see you in the next video.

This video will cover AWS billing tools.

AWS billing and cost management is a service that you use to pay your AWS bill,
monitor your usage and budget your expenses.
Billing and cost management enables you to forecast and obtain a better idea of what
your costs and usage might be in the future so that you can plan ahead.
You can set a custom time period and determine whether you would like to view your
data at a monthly or daily level of granularity.
With the filtering and grouping functionality, you can further analyze your data using a
variety of available dimensions.
The AWS Cost and Usage Report tool enables you to identify opportunities for
optimization by understanding your cost and usage data trends and how you are using
your AWS implementation.
AWS Billing dashboard lets you view the status of your month to date AWS expenses and
identify the services that account for the majority of your overall monthly bill.
You can also understand at a high level how costs are trending.
One of the graphs that is located on the dashboard is the spend summary shows you how
much you spent last month, the estimated cost of your AWS usage for the month to date,
and the forecast for how much you're likely to spend this month.
Another graph is month to date spend by service which shows the top services that you
use most and the proportion of costs that are attributed to that service.
These tools include AWS budgets, AWS cost usage reports and AWS cost Explorer.
The AWS Bills page lists the cost that you incurred over the past month for each AWS
service with a further breakdown by AWS region and linked account.
This tool gives you access to the most up to date information on your costs and usage,
including your monthly build and the detailed breakdown of your AWS services that you
use.
The AWS Billing and Cost Management Console includes the Cost Explorer page for
viewing your AWS cost data.
With Cost Explorer you can visualize, understand and manage your AWS costs and usage
over time.
The Cost Explorer includes a default report that visualizes your costs and usage for your
AWS services.
The monthly running cost report gives you an overall view of all your costs for the past
three months.
It also provides forecasting numbers for the coming month for the corresponding
confidence interval.
You can also use AWS budget to create notifications for when you go over your budgets
for the month.
Budgets can be tracked monthly, quarterly, or yearly level.
You can customize the start and end date.
Budget alerts can be sent via e-mail or via Amazon Simple Notification Service Amazon
SMS.
The AWS cost and usage report is a single location for accessing comprehensive
information about your AWS cost and usage.
This tool lists the usage for each service category that is used by an account and its users
in hourly or daily line items and any tax that you activated for tax allocation purposes.
You can have AWS publish billing reports to an S3 bucket.
These reports can be updated once a day.
Thanks for watching.
See you in the next video.

This video will cover AWS technical support plans.

Whether you are new or continue to adopt AWS services and applications as your
business solution, AWS wants to help you do amazing things.
AWS support can provide you with unique combination of tools and expertise based on
your current and future use cases.
Support was developed to provide the right resources to help you succeed.
We want to support all our customers, including customers that might just be
experimenting with AWS.
The idea is for you to be able to plan, deploy, and optimize with confidence.
For account assistance, the support concierge is a billing and account expert who will
provide quick and efficient analysis on billing and account issues.
The concierge addresses all non-technical billing and account level inquiries.
If you want to ensure that you follow best practices in your AWS environment, you can
use AWS Trusted Advisor.
AWS Trusted Advisor is an automated service that acts like a customized cloud expert.
It is an online resource that checks for opportunities to reduce monthly expenditures and
increase productivity.
Trusted Advisor tells you what you are doing right.
It tells you where you need to watch out, and it also points out what needs to be corrected
because it represents a problem in your implementation.
Want to leverage trusted advisor as much as possible during your implementation in order
to make sure you get things done right the first time.
If you would like corrective guidance, AWS support has technical account managers also
known as Tams or designated as a primary form of contact.
The Tams provide guidance, architectural review and continuous ongoing communication
to keep you informed and prepared as you plan and optimize your solution.
Please know the technical Account Manager is only available via the Enterprise Support
plan.
AWS support offers 4 plans.
They are basics, developer, business and enterprise.
The basic plan is free of charge and offers support for account and billing questions and
service limit increases.
The other plans offer an unlimited number of technical support cases with pay by the
month pricing and no long term contracts.
Customers with a developer support plan have access to additional features including best
practice guidance, client side diagnostic tools, building block architecture support, which
means guidance on how to use AWS products, features and services together.
Business or enterprise support plans have access to more advanced support features
including full access to AWS Trusted Advisor and use case guidance.
With business or enterprise support, you also get access to an API for interacting with
Support Center and Trusted Advisor.
This API allows for automated support, case management and Trusted Advisor
operations.
Exclusive to the Enterprise Support plan, you have access to a technical account manager,
white glove case routing, application architecture, guidance, management, business
reviews, and infrastructure event management support.
AWS wants you to be able to plan, deploy, and optimize with confidence.
You get to select the plan that best fits your needs.
In addition to understanding the cost and features of different support plans, it is critical
that you understand the service levels that are associated with each.
In addition to the support plan you select, the case severity will drive the type of response
that you receive.
There are five different severity levels.
Your business is at risk.
Critical functions of your application are unavailable.
Your business is significantly impacted.
Important functions of your application are unavailable.
Important functions of your application are impaired or degraded.
Non critical functions of your application are behaving abnormally or you have a time
sensitive development question.
You have a general development question or you want to request a feature.
Note that there is no case support with a basic support plan.
Keep the response times in mind for you determine.
Thanks for watching.
See you in the next video.