Cost Savings analysis cost = acquisition + operational cost
lower costs
- consumption based model: pay for what you use
- AWS pricing models
- on demand
- reserved (RI reserved instances)
- spot
- dedicated hosts (if needed for regulation)
- frequent price reductions: AWS lower prices automatically applied for customers
- excludes: reserved instances
Amazon Flywheel scale: high volume, low margin -> price reductions
eg. AWS mobile device farm for testing mobile apps