AWS Fundamentals for Beginners: Pricing, Cloud Models, and IaaS/PaaS/SaaS

When I started learning AWS, I quickly realized one thing: before jumping into services like EC2 or S3, I first needed to understand the basics of cloud.

So on Day 1, I focused on four things:

  1. How AWS pricing works

  2. What on-premises, cloud, and hybrid mean

  3. The difference between IaaS, PaaS, and SaaS

  4. A quick look at AWS history

Let me explain these in simple words.


πŸ’° AWS Pricing Models – How You Pay

The cool thing about AWS is you don’t buy big servers upfront. Instead, you pay only for what you use. Here are the options:

  • On-Demand β†’ Pay as you go. No commitment. Best for learning or testing.

  • Reserved β†’ Commit for 1–3 years, get big discounts. Best for things running 24/7 (like a website).

  • Spot β†’ Super cheap but AWS can take it back anytime. Best for short, flexible tasks.

  • Savings Plans β†’ Like Reserved, but more flexible.

πŸ‘‰ Think of it like traveling:

  • On-Demand = Taxi (pay for the ride).

  • Reserved = Own a car (long-term use).

  • Spot = Carpool (cheap, but not always available).

  • Savings Plan = Monthly bus pass (save money if you travel often).


☁️ On-Premises, Cloud, and Hybrid

Here’s how companies use servers:

  • On-Premises β†’ Servers in your own office/data center. More control, but expensive.

  • Cloud β†’ Rent servers from AWS or others. Flexible, cheaper, and no maintenance.

  • Hybrid β†’ A mix of both.

πŸ‘‰ Imagine storing your stuff:

  • On-Premises = Keeping everything at home.

  • Cloud = Renting storage space.

  • Hybrid = Keep some things at home, rest in storage.


βš™οΈ IaaS, PaaS, SaaS – The Three Service Models

These are just fancy names for how much of the work you want AWS to handle:

  • IaaS (Infrastructure as a Service) β†’ You rent servers, storage, networks. Example: EC2.

  • PaaS (Platform as a Service) β†’ AWS gives you a ready platform to run apps. Example: Elastic Beanstalk.

  • SaaS (Software as a Service) β†’ You just use the software. Example: Gmail, Zoom.

πŸ‘‰ Think of food:

  • IaaS = Buy ingredients, cook yourself.

  • PaaS = Get a meal kit, just follow steps.

  • SaaS = Order a pizza, just eat.


πŸ“– A Quick AWS History

  • 2006 β†’ AWS started with EC2 and S3.

  • 2012 β†’ Free Tier launched β†’ anyone could try AWS.

  • Today β†’ AWS has 200+ services and is the biggest cloud provider.


βœ… Wrap-Up

On Day 1, I learned that:

  • AWS pricing is flexible and depends on your needs.

  • Cloud models = On-premises (own it), Cloud (rent it), Hybrid (mix).

  • IaaS, PaaS, SaaS are just levels of control.

  • AWS started small but now powers companies worldwide.

This foundation helped me see AWS in a much clearer way. Instead of random services, I now understand the β€œwhy” behind the cloud.

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Written by

Vaishnavi Jadhav
Vaishnavi Jadhav