Chapter 75: AWS Pricing and Support

AWS Pricing and Support

This is not just “how much does AWS cost?” It is a complete system — how AWS charges you, how you can control & predict your bill, what free tiers exist, what support plans are available, and how to avoid the classic ₹50,000–₹2 lakh surprise bills that many Hyderabad startups face in their first 3–6 months.

I will explain it like we’re sitting together with a whiteboard and a second cup of filter coffee — slow, clear, step-by-step, full of real analogies, actual 2026 Hyderabad startup examples, current pricing reality in ap-south-1 & ap-south-2, and exactly how smart teams keep their bills predictable and support useful.

1. The Golden Rule of AWS Pricing (Memorize This First)

AWS Pricing Principle #1 (2026 reality):

You pay only for what you use — but “use” includes everything you forget to turn off.

Unlike traditional servers where you buy a fixed machine and pay the same every month, AWS is pay-as-you-go — but that means idle resources, forgotten test environments, and misconfigured auto-scaling can cost you much more than a fixed server ever would.

The most common bill shocks in Hyderabad startups in 2026 come from exactly these:

  • Left EC2 instances running in us-east-1 (very expensive region)
  • Public S3 buckets with thousands of GET requests from bots
  • Forgot to delete EMR/SageMaker training clusters
  • Lambda functions with recursive loops
  • RDS Multi-AZ + Provisioned IOPS way higher than needed

2. The Main Pricing Models on AWS (How You Actually Get Billed)

Pricing Model How it works (simple) Typical services using this model Best for (Hyderabad startup example)
On-Demand Pay by the second / hour — no commitment EC2, RDS, Lambda (default), ECS Fargate Dev/test, unpredictable traffic
Savings Plans Commit to 1 or 3 years of usage — up to 72 % discount EC2, Fargate, Lambda, SageMaker Production workloads with steady usage
Reserved Instances (RI) Commit to specific instance type & term (1 or 3 years) EC2, RDS, Redshift Predictable long-running instances
Spot Instances Bid on spare capacity — up to 90 % cheaper, can be interrupted EC2 Spot, ECS Spot tasks, Batch jobs Non-critical batch jobs, ML training
Pay-per-request / Serverless Pay only for actual usage (requests, duration, GB-seconds) Lambda, DynamoDB (on-demand), Athena, Glue, Step Functions Variable / bursty workloads
Data Transfer Charges for moving data out to internet / between regions S3, CloudFront, EC2 → internet Minimize egress costs with CloudFront

2026 quick rule for Hyderabad startups:

  • Start with On-Demand + Free Tier → safe for learning
  • Move to Savings Plans as soon as monthly bill > ₹30,000–50,000 (usually covers 70–80 % of usage)
  • Use Spot for non-critical batch jobs (CI/CD, ML training)
  • Never run production in expensive regions (us-east-1, eu-west-1) — stick to ap-south-1 or ap-south-2

3. The Free Tier — Your Best Friend in the First Year

AWS Free Tier (still very generous in 2026):

Service Free Tier Amount (every month, forever unless noted) Typical Hyderabad startup usage
EC2 750 hours t3.micro / t4g.micro Dev/test instances running 24/7
S3 5 GB Standard storage, 20,000 GET, 2,000 PUT Small static website + user uploads
Lambda 1 million requests + 400,000 GB-seconds Background jobs, webhooks
DynamoDB 25 GB storage, 25 write/read capacity units Small metadata / cart tables
RDS 750 hours db.t4g.micro (Single-AZ) Dev/test database
CloudWatch Basic monitoring, 10 custom metrics, 1 million API requests Most dashboards & alarms

Real example: A college project team in CBIT / Vasavi launches a Node.js API + React frontend + DynamoDB → Runs on t4g.micro (free) + S3 static hosting (free) + Lambda (free) + DynamoDB (free) → Monthly AWS bill = ₹0 for first 12 months — even with 1,000 daily users

4. AWS Support Plans — Which One Should You Choose?

Plan Monthly Cost (rough, 2026) Key Benefits (what you actually get) Who uses this plan in Hyderabad?
Basic Free 24×7 billing & account support, Trusted Advisor (7 checks), forums Students, very early startups
Developer ~₹2,500–7,500 Email support during business hours, full Trusted Advisor Small startups, side projects
Business ~₹7,500–35,000 24×7 phone/email support, Infrastructure Event Management, full Trusted Advisor Most scaling startups & mid-size companies
Enterprise On-Ramp ~₹35,000+ TAM (Technical Account Manager), Well-Architected reviews, concierge support Serious fintech, health-tech
Enterprise ₹1,00,000+ Dedicated TAM, 24×7 priority support, organizational workshops Large enterprises, banks

2026 recommendation for Hyderabad teams:

  • Month 1–6 → Basic or Developer (free / low cost)
  • Month 6–18Business Support — when monthly bill > ₹50,000–80,000 → Full Trusted Advisor alone usually pays for the plan in 1–2 months
  • After ₹5–10 lakh/month → consider Enterprise On-Ramp for TAM help

5. Real Hyderabad Example — How a Startup Uses Pricing & Support

Your startup “TeluguBites” (restaurant discovery + food ordering) — 8 developers, 3 DevOps, 5 AWS accounts

Pricing journey (typical 2026):

  • Month 1–3 — Basic support + Free Tier → Bill ~₹8,000–15,000 (mostly EC2 On-Demand + RDS) → Used Cost Explorer to see “dev account” spending 60 % on idle t3.medium instances → stopped them
  • Month 4 — Bill crossed ₹45,000 → Upgraded to Business Support (~₹12,000/month) → Full Trusted Advisor found:
    • 4 idle EC2 instances → stopped → saved ₹9,000/month
    • RDS Single-AZ → enabled Multi-AZ → added high availability
    • Security group allowing 0.0.0.0/0 on port 22 → fixed in 5 min
  • Month 8 — Bill ~₹1.2 lakh/month → Bought Compute Savings Plan (1-year, all-in) → 65 % discount on ECS Fargate & Lambda → Bill dropped to ~₹70,000/month for same usage
  • Support usage:
    • Called 24×7 support twice: once for RDS Multi-AZ failover question, once for VPC peering limit increase
    • Saved ~3 days of debugging

Summary Table — AWS Pricing & Support Cheat Sheet (2026 – India Focus)

Question Answer (Beginner-Friendly)
How does AWS charge? Pay-as-you-go — seconds/hours/requests/GB — you pay for what you use (and what you forget to turn off)
Free Tier — how long? Most services “forever free” tier (e.g., 750 h EC2 t4g.micro every month)
When to upgrade support? When monthly bill > ₹50,000–80,000 — Business Support usually pays for itself
Best way to control costs? Tag everything, use Cost Explorer + Budgets alerts, buy Savings Plans early
Biggest bill shock causes? Idle EC2/RDS, public S3 GETs from bots, non-approved regions (us-east-1)
First thing to do today? Open Cost Explorer → see last 30 days usage → stop any idle t3/t4g instances

Teacher’s final note (real talk – Hyderabad 2026):

AWS pricing is very fair — but it punishes forgetfulness and rewards discipline.

The teams that keep bills low & predictable in Hyderabad are not the ones using the cheapest services — they are the ones who:

  1. Tag every resource (Environment, Owner, Project)
  2. Check Cost Explorer weekly
  3. Set Budgets alerts at 80 %
  4. Buy Savings Plans as soon as usage is predictable
  5. Use Business Support for Trusted Advisor once bill > ₹50,000

Do these five things religiously and your AWS bill will stay predictable & reasonable even as you scale.

Got it? This is the “how to use AWS without getting a heart-attack bill” lesson.

Next?

  • Step-by-step: Set up Cost Explorer + Budgets + tag policy in a new account?
  • Deep dive: Savings Plans vs Reserved Instances — which one saves more in 2026?
  • Or how to use Trusted Advisor Cost Optimization checks to find idle resources?

Tell me — next whiteboard ready! 🚀💰

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