Cost Savings analysis

cost = acquisition + operational cost

lower costs

1. consumption based model: pay for what you use

2. AWS pricing models

3. • on demand

   • reserved (RI reserved instances)

   • spot

   • dedicated hosts (if needed for regulation)

4. frequent price reductions: AWS lower prices automatically applied for customers

5. 1. excludes: reserved instances

Amazon Flywheel

scale: high volume, low margin -> price reductions

eg. AWS mobile device farm for testing mobile apps