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AWS can be very cheap or very
expensive depending on how you use it.

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To understand pricing on AWS,

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we need to talk about two related
concepts, space and time.

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Space is a measure of capacity or
capability.

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For example, a computer with a large hard
drive is capable of holding a lot of

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information, so
we say it has a lot of space.

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But storage capacity isn't the only
kind of capacity there is.

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What about processor capacity?

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A computer with a fast processor
is capable of processing a lot of

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information.

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So we also say it has a lot of space,
even if it has a small hard drive.

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There's also network capacity,

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which is how fast the computer is
able to talk to other computers.

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We could say that a computer with
a very fast network has a lot of space.

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Basically, you can think of space as
a measure of how powerful a computer is.

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More powerful computers are capable of
holding more stuff and doing more stuff.

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Then there's time.

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Time is a pretty straightforward concept.

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It's a measure of how long it takes
to do something, but things get a bit

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more complicated when you have multiple
actors working simultaneously.

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Let's say you need to
stuff 60 envelopes and

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it takes a minute to stuff one envelope.

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Its going to take 60 minutes of work,
right.

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Well, what if we have four people
stuffing envelop simultaneously?

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Each person only has to stuff 15 envelops,
so it takes 15 minutes.

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But the task hasn't gotten any smaller.

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It's still 60 minutes of work even if it
only took 15 minutes of time on the clock.

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When we talk about time with computers,
we're usually talking about the total work

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time added up across all the computers
that are working on the task together.

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So how does all this relate to AWS?

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Anything that you do on AWS will
require some amount of space,

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some amount of time, or both.

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The price you pay is based
on space multiplied by time.

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In addition, you can usually trade space
for time, at least to some degree.

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Let's take a look at an example
to understand what this means.

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You and
your friends are going on vacation and

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you'll all be staying at the Amazon Hotel.

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You need to decide how
many rooms to book and

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how many nights you'll
be staying at the hotel.

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At the Amazon hotel,
you can book a regular room or a suite.

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A suite has more space, but
it costs more money than a regular room.

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How do you make sure that you can
stay at the hotel as long as possible

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while not paying too much money?

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You could all try to
squeeze into one room.

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This means that you'll be able
to stay at the Amazon hotel for

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a long time,
because one room isn't very expensive.

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However, you're sacrificing space
to get that extra time, and

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no one will sleep very well
in that cramped space.

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Alternatively, everyone
could get their own room, or

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even their own separate suite.

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Now, everyone has a lot of space,
but that gets expensive quickly and

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you might only be able to
afford one night at the hotel.

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Effectively, you're sacrificing
time to get that extra space.

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The best approach is
somewhere in the middle.

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A small number of rooms and suites, shared
so that everyone has just enough space

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will make sure that you pay the minimum
amount for the maximum benefit.