Understand AWS Pricing, Cloud Computing Models and Services

Cloud computing is a popular and powerful technology that allows you to access computing services, such as servers, storage, databases, networking, software, analytics, and intelligence, over the internet. Cloud computing can help you improve business performance, reduce costs, scale your operations, and enhance your security.

However, cloud computing can also be confusing and overwhelming, especially if you are unfamiliar with the technical terms and concepts. How do you choose the best cloud service provider, pricing, and cloud computing model for your business?

In this blog post, we will explain the basics of AWS pricing and cloud computing models in an easy way that anyone can understand. We will compare cloud computing to renting a house and use AWS, the leading cloud service provider, as an example.

AWS Pricing Models

AWS is like a big landlord that offers many different types of houses for rent. You can choose from the available sizes, styles, locations, and features of the houses and pay accordingly. Some of the pricing models that AWS offers are:

On-Demand Instances: This is like renting a house by the hour or the day. You only pay for the time you use the house, and you can leave at any time. This is good for people who need a home for a short time or don’t know how long they will need it.
Savings Plans: This is like signing a contract with the landlord to use a certain number of houses for a certain period, such as one year or three years. You get a discount on the rent, but you have to stick to the contract. This is good for people who have a stable and predictable need for houses and who want to save money.
Reserved Instances: This is like reserving a specific house for a certain time, such as one year or three years. You get a bigger discount on the rent, but you have to pay some or all of the rent upfront. You can choose the exact type, size, and location of the house you want. This is good for people who know exactly what kind of house they need and want to secure it for a long time.
Spot Instances: It is like bidding on a house that no one else is using. You can get it for very cheap rent, but you have to be ready to leave the house at any time if someone else wants it. This is good for flexible people who can tolerate interruptions and who want to save a lot of money.
Dedicated Hosts: This is like renting a whole building with many houses and having it all to yourself. You can use your furniture and appliances, and you have more control and visibility over the building. This is good for people who have special requirements or regulations or who need a high level of privacy and security.

You can always find the current rent information for each type of house at [AWS Pricing].

Cloud Computing Models

There are also different ways of storing your belongings and accessing your house. There are three main ways of doing this:

On-premises: This is like keeping your belongings at your place and going there whenever you need them. You have to buy and maintain your place, and you have to take care of the security and utilities. You have more control, flexibility, and security, but you also have more cost, expertise, and scalability challenges.
Cloud: This is like keeping your belongings at the landlord’s place and accessing them through the internet. You don’t have to buy or maintain anything, and you only pay for the space and services you use. You have more scalability, reliability, and cost-efficiency, but you also have less control, customization, and security.
Hybrid: This is like keeping some of your belongings at your place and some at the landlord’s place, depending on your needs and preferences. You can choose which belongings and services to store on-premises or in the cloud, and you can switch between them as you wish. You have more flexibility, agility, and innovation, but you also have more complexity, integration, and management.

The choice of the best way of storing and accessing your belongings depends on various factors, such as the type, size, and nature of your belongings, the budget, the security and compliance requirements, the performance and availability expectations, and the existing infrastructure and skills you have.

IaaS, PaaS, and SaaS

IaaS, PaaS, and SaaS are three types of cloud computing services that offer different levels of access to and control over cloud-based technology. They are sometimes referred to as cloud service models or cloud computing service models. Here is a simple explanation of each type, with some examples for non-IT people:

IaaS (Infrastructure as a Service) is like renting a car. You get to use the car, but you don’t own it or have to maintain it. You can choose the type, size, and features of the car, and you pay for the time and distance you use it. You have control over the driving, but not over the engine or the mechanics. Some examples of IaaS are Rackspace, Digital Ocean, Google Compute Engine, and some deployments of Microsoft Azure and Amazon Web Services (AWS).
PaaS (Platform as a service) is like taking a taxi. You don’t have to worry about the car, the driver, or the route. You just tell the taxi where you want to go, and it takes you there. You pay for the service, not for the car. You have control over the destination, but not over the journey. Some examples of PaaS are Salesforce, AWS Elastic Beanstalk, Heroku, Google App Engine (GAE), and OpenShift.
SaaS (software as a service) is like taking a bus. You don’t have to worry about the car, the driver, the route, or the destination. You just hop on the bus and enjoy the ride. You pay for the ticket to the service. You have access to the bus, but not to the driver or the controls. Some examples of SaaS are Google Drive, Gmail, Dropbox, Apple iCloud, Microsoft One Drive, Microsoft Office 365, and Salesforce CRM¹.

Conclusion

We hope this blog post has helped you understand the basics of AWS pricing and cloud computing models simply and easily. By understanding the pros and cons of each option, you can make an informed decision that suits your business goals and needs.