How does AWS pricing work?

AWS pricing is based on a pay-as-you-go model, which means you only pay for the services and resources you actually use. The cost of using AWS services is determined by various factors including the type and amount of services used, the duration of usage, and the region in which the services are utilized. AWS offers a range of pricing options, including on-demand, reserved instances, and spot instances, each with its own pricing structure. With on-demand pricing, you pay for the resources on an hourly basis, whereas reserved instances offer discounted prices for longer-term commitments. Spot instances provide the opportunity to bid for spare AWS capacity at significantly discounted rates. Additionally, AWS offers cost optimization tools and recommendations to help customers manage their expenses efficiently.