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Cost Management

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Besides the ability to control expenses by closely managing the resources you use, cloud computing transitions your IT spending from a capital expenditure (capex) framework into something closer to operational expenditure (opex).

In practical terms, this means you no longer have to spend $10,000 up front for every new server you deploy—along with associated electricity, cooling, security, and rack space costs. Instead, you're billed much smaller incremental amounts for as long as your application runs.

That doesn't necessarily mean your long‐term cloud‐based opex costs will always be less than you'd pay over the lifetime of a comparable data center deployment. But it does mean you won't have to expose yourself to risky speculation about your long‐term needs. If, sometime in the future, changing demand calls for new hardware, AWS will be able to deliver it within a minute or two.

To help you understand the full implications of cloud compute spending, AWS provides a free Total Cost of Ownership (TCO) Calculator at aws.amazon.com/tco-calculator. This calculator helps you perform proper “apples‐to‐apples” comparisons between your current data center costs and what an identical operation would cost you on AWS.

AWS Certified Solutions Architect Study Guide

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