EC2 Pricing Models: Understanding Costs and Strategies


Intro
Navigating the landscape of Amazon EC2 pricing can feel like trying to find your way through a maze without a map. It's not just about picking a number on a pricing chart—it involves understanding a host of variables that can influence costs. As more businesses migrate to the cloud, grasping these pricing models becomes increasingly critical for making informed decisions. This section sets the stage for diving deeper into the nuances of EC2 pricing, revealing the factors that sway costs and strategies for cost management that resonate with both newcomers and seasoned professionals in technology.
Software Overview
Purpose and Function of the Software
Amazon EC2, or Elastic Compute Cloud, serves as the backbone of cloud computing for many organizations. It's designed to provide scalable computing capacity in the cloud, enabling users to deploy applications without the need to invest in physical hardware. This flexibility is akin to renting a vehicle rather than buying one—it allows for adjusting resources based on the current needs. Businesses can spin up instances quickly, manage workloads, and scale up or down seamlessly depending on demand.
Key Features and Benefits
Here are some notable features that EC2 brings to the table:
- Variety of Instance Types: Users can select from different instance types, each optimized for specific tasks, such as high-performance computing or memory-intensive applications.
- Pay-As-You-Go Pricing: This model empowers users to pay only for what they use, decreasing costs during low-demand periods.
- Global Reach: With data centers around the globe, EC2 allows businesses to deploy applications closer to end-users, improving latency and performance.
- Autoscaling: The ability to automatically adjust resources according to current traffic ensures that applications remain responsive without overspending.
The benefits become clear when you consider the agility and cost efficiency offered through these features. Businesses can innovate at an unprecedented pace, responding swiftly to market changes and customer needs.
Understanding EC2 Pricing Structures
Amazon EC2’s pricing models consist of several tiers that cater to various user needs, including On-Demand Instances, Reserved Instances, and Spot Instances. Each model has its own distinct advantages and is suited to different usage patterns.
On-Demand Instances
This pricing model works on a pay-as-you-go basis. You only pay for the compute capacity you use. It's convenient for short-term workloads or unpredictable application usage, as it doesn’t require any long-term commitment. It's akin to using a taxi rather than buying a car—ideal for those occasional trips without the hassle of maintenance.
Reserved Instances
For those with predictable workloads, Reserved Instances offer significant savings over On-Demand pricing. Users commit to a one- or three-year term in exchange for a lower hourly rate. This kind of commitment can lead to substantial cost reductions, similar to signing a long-term lease that often comes with lower monthly payments.
Spot Instances
Spot Instances let users bid for unused EC2 capacity at potentially lower prices. It can offer huge savings, but with the caveat that instances could be interrupted. This is perfect for flexible workloads that can withstand interruptions, much like taking a last-minute flight deal; it might not be straightforward, but it’s more affordable.
Cost Factors
Understanding the key factors that influence EC2 pricing is essential for effective budgeting and forecasting. Here are some considerations that can sway costs:
- Instance Type and Size: Different types of instances—ranging from small to large—carry varying hourly rates, based on the resources allocated like CPU and RAM.
- Region: Pricing can differ based on the data center location. Some regions may have higher costs due to demand and supply factors.
- Data Transfer: Charges for data transferred in and out of EC2 instances can accumulate, thus warranting attention when architecting apps.
- Storage Costs: S3 storage, EBS volumes, and other storage solutions come with their own rates that need to be factored into the overall cost assessment.
"Understanding the cost components helps to not just manage expenses but also create a more informed strategy for cloud deployment."
Finally, it’s valuable for users to regularly revisit their EC2 configurations and resource utilization. The dynamic nature of cloud usage means that what works today may need revisiting tomorrow. With a keen eye on the complexities of pricing models, users can maximize the potential of Amazon EC2 to support their business objectives.
Prologue to Amazon EC2
Amazon EC2, or Elastic Compute Cloud, is a cornerstone of Amazon Web Services (AWS) that provides scalable computing power in the cloud. This crucial service allows users to run applications in a flexible, cost-effective manner. Understanding EC2 is akin to having the keys to a vast energy resource that can be tapped into as needed. The emphasis on comprehending its pricing models cannot be overstated, given that even minor miscalculations can lead to unexpected costs. Having a thorough grasp of EC2 also enhances strategic planning, enabling businesses to make informed decisions about resource allocation and budget management.
What is Amazon EC2?
At its core, Amazon EC2 helps users launch servers, called instances, in the cloud. It offers a variety of instance types tailored to diverse workloads, from basic tasks to complex operations requiring significant computational resources. Users interact with EC2 primarily through the AWS Management Console, a web-based interface that facilitates the deployment and management of their instances.
One appealing aspect of EC2 is its flexibility. You can adjust the types and number of instances according to your needs. Whether you’re running a simple website or a massive database, EC2 adapts, making it an optimal choice for developers and businesses alike. Moreover, the pay-as-you-go pricing structure means that users only pay for what they use.
Significance of Understanding Pricing
Understanding the intricacies of EC2 pricing is essential for anyone looking to utilize cloud computing effectively. The variability in pricing can be influenced by many factors, including instance type, geographical region, and even specific configurations selected by the user.
It's not just about finding a cheap option; it's about weighing the features you need against the costs involved. Missing the mark can lead to fees that can rack up faster than a speeding ticket in a school zone. For instance, if a company deploys an instance without analyzing its requirements thoroughly, it could easily end up paying for unused capacity.
"In the clouds of EC2, the costs can soar as high as any airplane if not monitored correctly."
Thus, having a keen awareness of pricing models can lead to significant savings and optimized performance for your organization's infrastructure. Balancing your approach to EC2 pricing can mean the difference between a successful project and an unexpected financial shortfall. This navigation through pricing intricacies extends beyond just dollars and cents; it forms the backbone of smart cloud management, a critical skill in today’s tech-heavy environment.
Overview of EC2 Pricing Mechanisms
The pricing models offered by Amazon EC2 represent a vital foundation for effective budgeting and resource allocation in cloud computing. Understanding these mechanisms is crucial as they directly affect operational costs and can significantly influence budgeting strategies for businesses. Whether you're running a startup or managing a large enterprise, having a solid grasp of these pricing mechanisms can lead to substantial savings and optimized performance.
The pricing landscape is complex, peppered with various options that reflect distinct use cases and demands. Comprehending these elements allows users to make informed decisions when provisioning cloud resources. Moreover, it empowers users to align their financial resources with their technical needs effectively.


By breaking down the core EC2 pricing options, we can assess their individual benefits, considerations, and nuances. This clarity is essential for any developer or IT professional keen on harnessing the power of cloud infrastructure without overspending. In this segment, we'll delve into the three main pricing models: on-demand, reserved, and spot instances, each serving unique operational requirements.
On-Demand Instances
On-Demand Instances are perhaps the most straightforward pricing mechanism. This model allows users to pay for cloud computing capacity by the hour or second, with no long-term commitments. Consequently, businesses gain flexibility and cost-effectiveness, especially for unpredictable workloads.
The primary advantages of On-Demand Instances are:
- Immediate Availability: Resources can be started at any time, responding instantly to growing requirements.
- Scalability: Adding or reducing capacity aligns perfectly with real-time needs.
- No Upfront Costs: Users incur expenses only when services are utilized.
However, it’s essential to note that while using On-Demand Instances can be financially viable for short-term needs, the costs may accumulate quickly if loads remain high over extended periods. Hence, evaluating the workload patterns against long-term plans is a sensible approach.
Reserved Instances
Transitioning to Reserved Instances represents a commitment to long-term usage. By reserving capacity for a one- or three-year term, organizations can secure significant discounts compared to On-Demand pricing. This option is particularly appealing for predictable workloads, where consistent usage is guaranteed.
Key features of Reserved Instances include:
- Cost Savings: Up to 75% savings compared to regular On-Demand prices, depending on the payment schedule chosen—whether all upfront, partial upfront, or no upfront.
- Capacity Reservation: Guaranteed capacity at specified locations, reducing risks of outages due to over-provisioning.
- Flexibility: Users can modify reserved instances as requirements change, ensuring adaptability.
It is vital to conduct a thorough analysis of expected workload patterns before committing. While the cost savings can be substantial, it is essential to ensure the resource utilization aligns with business needs over the reserved term.
Spot Instances
Lastly, Spot Instances leverage unused EC2 capacity, allowing users to bid for spare computing power at significantly reduced rates. This mechanism serves as a double-edged sword—while it offers potential cost savings, it does come with a caveat: instances can be terminated by AWS if demand increases.
Employing Spot Instances brings several advantages:
- Cost Efficiency: Users can save up to 90% off On-Demand prices, a tempting proposition for many.
- Ideal for Fault-Tolerant Applications: Spot Instances work well for batch jobs or applications that can endure interruptions and require vast amounts of resources.
- Flexible Usage: Businesses can maximize throughputs for non-critical operations while minimizing expenses.
However, it is crucial for users to have a strategy in place for managing the volatility of Spot Instances, ensuring that their workloads can either adapt or fallback to other models as needed.
"Using a combination of these pricing structures can lead to optimized cost management, balancing flexibility and predictability according to specific operational needs."
EC2 Pricing Per Hour Analysis
In the world of cloud computing, understanding how pricing per hour works is crucial for all users. Whether you're a big enterprise or a startup, knowing how costs are calculated on Amazon EC2 can affect your bottom line. This section dissects the intricacies behind hourly pricing, focusing on specific elements that impact costs and the overall benefits of this model.
Variable Pricing by Instance Type
When it comes to EC2, not all instance types are created equal. Pricing varies significantly based on the instance type selected. Each instance type is designed for specific workloads, ranging from general-purpose tasks to optimized options for compute-intensive applications. For instance, a general-purpose instance like the T3 or T4g series might have a lower hourly rate compared to compute-optimized instances like the C6g. Hence, if you’re looking to run high-performance applications, it may cost you more based on your choice of instance.
A careful evaluation of your workload requirements can charm a bit of control over costs:
- General Purpose Instances: Lower hourly rates suitable for various applications.
- Compute Optimized Instances: Higher rates but better performance for CPU-heavy tasks.
- Memory Optimized Instances: Also on the pricier side, tailored for memory-intensive applications.
Consider selecting instances that match your workload needs precisely. The more aligned the instance is, the more cost-efficient your overall EC2 strategy will be.
Regional Pricing Differences
Region is another factor that complicates EC2 pricing. Amazon maintains data centers worldwide, and pricing can vary significantly from one region to another. For example, services in the US West (Oregon) may charge differently than those in EU (Frankfurt). It can be surprising how geographic location influences costs due to factors like operational expenses and local demand.
Take a look at some common observations:
- Higher Demand Equals Higher Prices: Popular regions may charge more due to increased demand.
- Operational Costs: Regions with lower electricity or labor costs may offer more competitive pricing.
- Latency Considerations: While a cheaper instance might sound appealing in a distant region, increased latency could hinder performance.
Being smart about selecting your region based on both cost and performance requirements allows for strategic savings. You don’t want to pay premium prices while sacrificing speed.
Impact of Instance Size on Cost
The size of the instance directly correlates with pricing. Amazon provides a variety of instance sizes under each type, ranging from small, t2.micro to large, c5.18xlarge due to different computational and memory capacities. Naturally, larger instances come with higher hourly rates.
Understanding that scaling can impact costs is paramount:
- Scaling Up: Increasing instance size inherently raises costs. Be aware of how much capacity you’re truly using.
- Scaling Down: If you’re over-provisioning, consider downsizing to save.
- Auto Scaling Features: These features enable automatic adjustment of the number of instances based on demand, which can be a money-saver.
Just because larger instances come with cooler specs doesn’t mean that they are necessarily the cost-effective choice for your project.
"Balancing your instance size with application needs is the essence of efficient cloud spending."
In summary, analyzing EC2 pricing per hour helps inform better decisions around instance types, regions, and sizes, ultimately leading to a more tailored and budget-friendly cloud experience. By being mindful of how these factors play into the overall costs, users can strategize their use of Amazon EC2 to optimize resource management.


Factors Influencing EC2 Prices
Understanding the various factors that influence pricing in Amazon EC2 is vital for businesses and individuals looking to manage their cloud computing costs effectively. Amidst the many options available, prices can fluctuate considerably based on a range of elements. Being insightful into these factors helps users make informed decisions and ultimately keeps expenses in check. The primary elements of concern include the choice of instance configuration, operating systems, and the network costs associated with data transfer.
Instance Configuration Choices
The choice of instance configuration directly affects the cost of using EC2. Each instance type has different specifications, such as CPU, memory, storage options, and networking capabilities. Therefore, users must tailor their instance setup according to their workload requirements.
- To provide a clearer picture:
- Compute-optimized instances are ideal for high-performance needs, such as deep learning models. However, they might not be necessary for simple web hosting.
- Memory-optimized instances are geared towards applications requiring high memory loads, like databases. Picking a more robust instance for lightweight tasks can lead to unnecessary expenses.
Moreover, understanding the various instance families—like T2, M5, or C5—helps in selecting a configuration that strikes a balance between performance and cost. Each family fits specific workloads, and mismanagement here can swiftly escalate charges, undermining budget goals.
Operating System Selection
The operating system (OS) used in EC2 instances also plays a significant role in determining pricing. AWS provides a variety of OS options, including Windows Server, various distributions of Linux, and custom AMIs (Amazon Machine Images). Each OS has its licensing costs, and this affects the overall expenditure on cloud services.
- Windows Server tends to be more expensive than Linux instances. For businesses that primarily run Linux-based applications, sticking with a Linux distribution can yield significant savings.
- Using custom AMIs can be financially savvy if they contain pre-installed applications and configurations, thus saving time and potentially costs on provisioning.
It's essential to evaluate not just the initial cost but also how the OS choice aligns with your applications and overall cloud strategy.
Networking and Data Transfer Costs
Lastly, users often overlook networking and data transfer costs, which significantly influence the bottom line. While EC2 instances might appear reasonably priced, burgeoning data transfer charges can quickly undermine budget allocations.
- Consider these points:
- Data transfer in generally incurs no costs. However, data transfer out to the internet is charged based on usage. This is crucial for businesses with high outbound traffic.
- Inter-region data transfers carry costs as well. If your applications require frequent, large-scale communications between different regions, this can also impact pricing.
Estimating and monitoring these networking costs could save users from unpleasant billing surprises.
"Understanding the intricate details of EC2 pricing is not just about saving money; it's about making strategic decisions that enhance operational efficiency."
In summary, factors influencing EC2 prices include the instance configuration, chosen operating system, and networking costs. By paying attention to these components, users can achieve a more favorable pricing structure tailored to their specific needs.
Cost Management Strategies
In the realm of cloud computing, navigating the waters of costs can be quite a tricky endeavor. An effective cost management strategy is not just beneficial; it’s essential for professionals looking to optimize their Amazon EC2 spend. Understanding these strategies can lead to significant savings, making it easier to balance performance with budgetary constraints. When tailoring these strategies, it’s important to consider the varying needs of your projects, as well as the scale of your operations.
Utilizing AWS Cost Explorer
AWS Cost Explorer is a powerful tool, allowing users to visualize their spending patterns. It offers comprehensive reports on past spending and forecasts future costs based on your current usage. By using cost explorer, individuals can take control over their finances, uncovering insights that might otherwise be hidden.
- Benefits
- Track usage and spending over time.
- Identify trends that help anticipate budget needs.
- Filter data by services, linked accounts, and tags for in-depth analysis.
Paying attention to the details can often lead to identifying areas where spending is excessive. For instance, say you notice a spike in costs for underused resources, indicating a need to revisit your instance allocation.
Budgeting and Alerts
Setting a budget is like having a compass when venturing into unknown territory. Without it, it’s easy to get lost and overspend. AWS allows users to set custom budgets for their accounts or specific projects and even provides alerts when costs approach those budgets.
- Key Considerations
- Specify budget thresholds based on unique project needs.
- Determine the frequency of alerts (daily, weekly, monthly).
- Use historical data to set realistic budgets based on past performance.
With a well-defined budget in place, professionals can better manage unforeseen costs, making decision-making a lot less painful. An important note here is to create a budget that is a bit flexible, as certain projects may experience unpredictable usage spikes that could legitimately lead to extra costs.
Evaluating Use of Savings Plans
For those who are committed to using EC2 services over the long term, looking into AWS Savings Plans can pay off. These plans offer a significant discount compared to on-demand pricing and can lead to substantial savings.
- Types of Savings Plans
- Compute Savings Plans: Flexibility to change instance families and regions.
- EC2 Instance Savings Plans: Tied to specific instance family and region.
Opting for a Savings Plan requires careful planning and consideration of your usage patterns. It’s important to evaluate whether your anticipated usage aligns with the commitment period of one or three years, ensuring that you’re not just saving but also utilizing those savings effectively. This commitment comes with great benefits but also requires a solid understanding of your long-term cloud needs.
"Cost management isn't just about saving money; it’s about making informed decisions that align with your business objectives."


In the ever-evolving landscape of cloud services, navigating through different pricing models with keen strategies ensures that you’re not just getting by but thriving.
Comparative Analysis with Other Cloud Services
In today’s fast-paced tech world, the cloud has become more than just a buzzword; it’s where companies operate, store data and run applications. As a decision-maker or tech enthusiast, understanding how Amazon EC2 stacks up against other cloud services is not just educational but essential. It plays a significant role in deciding which platform meets your unique needs best. This comparative analysis dives into the pricing structures of EC2 against Microsoft Azure and Google Cloud, allowing you a clearer perspective on which option suits your business or project.
Azure vs. EC2 Pricing
When you line up Azure and EC2 side by side, you can see the contrast in their pricing strategies. Both offer pay-as-you-go models, but you’ll notice some differences in costs which can impact long-term flexibility and budgeting.
- Base Prices: Azure tends to have a higher baseline cost for their virtual machines compared to EC2. However, EC2 has a wide variety of instance types serving various workloads, which can mean more variability in costs. This variance allows businesses a more tailored approach to their spending.
- Discounts and Savings: On the front of cost-saving options, Azure offers Azure Hybrid Benefit for Windows Server users, effectively reducing the overall bill by applying your existing licenses. In contrast, EC2 offers Reserved Instances for longer commitments and Savings Plans that provide flexibility. Depending on your workload's predictability, either option could lead to significant savings.
- Additional Services and Features: If you factor in additional services, Azure often includes a plethora of built-in features such as security and compliance at the same pricing level. EC2 requires additional attention to detail in identifying additional costs related to services like Elastic Block Store or data transfer, which can trip up the uninitiated.
For example, if you run a small startup and anticipate needing only a handful of instances, EC2 may offer more flexibility in instance selection and cost management. However, should your operation expand quickly and require repeatable services, Azure might provide more substantial built-in features that help you scale.
Google Cloud Pricing Comparisons
Now, let’s shift our focus to Google Cloud. The landscape here is equally varied. Google Cloud’s pricing model is slightly different due to its commitment to long-term discounts, often favoring sustained usage.
- Pricing Structure: Google Cloud tends to charge based on the use of resources more consistently than Azure or EC2. For instance, they offer per-second billing, which can contribute to reduced costs if instances are spun up and down frequently.
- Compute Engine Options: Google Cloud also provides various predefined machine types, similar to EC2. However, they allow users to create custom VM configurations that can optimize resources while minimizing costs. This can be particularly appealing if you are developing applications with specific resource requirements.
- Sustained Use Discounts: One of the attractive aspects of Google Cloud is its sustained use discounts for resources that are utilized for most of the billing month. This pricing model effectively reduces costs over time without the need for pre-emptive commitment like in Reserved Instances or Savings Plans.
So, if you plan to keep your applications running and are wary of unpredicted costs, Google Cloud might be the most economical choice, especially for longer projects. Comparatively, EC2 shines in scenarios where you need a wide variety of instance types and configurations to match diverse workloads.
Both Azure and Google Cloud present unique pricing structures, but careful evaluation of your workloads can lead to informed decisions and potential cost savings.
Considering these comparisons, it becomes evident that the choice between these leading cloud service providers hinges not just on pricing but also on specific requirements and preferences aligned with your business goals.
Deciding on which cloud service suite fits best involves weighing not only initial costs but also projected needs and usage patterns over time. Always assess what's on the horizon for your projects before tying yourself to a particular provider.
Practical Considerations When Choosing EC2
Navigating the complexities of Amazon EC2 pricing doesn’t merely hinge on numbers; it encompasses a myriad of practical considerations. For both individuals embarking on their cloud journey and organizations looking to optimize their cloud deployment, being mindful of resource requirements and billing cycles can make all the difference.
Understanding your specific needs in terms of resource utilization is not just a minor detail; it’s a pillar that sustains your cloud strategy. Grasping these elements leads to informed decision-making, and, ultimately, cost-efficiency.
Assessing Resource Requirements
Before committing to any instance type or size, it’s crucial to evaluate the exact resources your application will need. Underestimating this can lead to performance issues or, conversely, overspending on unnecessary capacity. A clear assessment process typically involves:
- Identifying Workload Characteristics: Thoroughly understand the nature of your workload—are you running compute-intensive applications, or is your usage more storage-heavy?
- Estimating Traffic: Anticipate the level of inbound and outbound traffic. This affects both the instance type chosen and the associated data transfer costs.
- Projecting Future Expansion: It’s important to consider future growth opportunities. A flexible EC2 strategy allows you to scale resources accordingly, as your needs evolve.
For instance, if your project starts small but is projected for rapid growth, it might be wise to consider a more powerful instance upfront rather than dealing with multiple scaling issues later on. Likewise, if you’re unsure about resource usage patterns, using tools like AWS CloudWatch can help monitor resource consumption, thereby honing your estimates.
Understanding Billing Cycles
Grasping the concept of billing cycles is instrumental for anyone utilizing EC2. The way EC2 bills its customers can be a bit intricate, thus warranting a careful examination. Understanding these cycles involves:
- Monthly Billing: Typically, Amazon bills on a monthly basis. This cycle means you’ll need to prepare for charges that reflect your usage throughout that month.
- Hourly Charges: Being aware that many EC2 instance types incur costs per hour can be crucial. It’s important to monitor when instances are up and running, especially if you’ve opted for on-demand instances.
- Free Tier Considerations: If you are eligible for the AWS Free Tier, being aware of its parameters can help avoid unexpected costs. Keep track of usage to ensure you remain within these limits in order to benefit from no charges.
It’s often the case that users forget about the costs associated with idle instances. Instances left running but not utilized can accumulate charges quickly, so it’s advisable to regularly review and shut down any unnecessary instances.
Ultimately, awareness of billing cycles along with resource requirement assessment provides you with the clarity needed for effective AWS budgeting. As you develop a comforting grasp of these factors, navigating the intricate seas of EC2 pricing will not just be manageable; it’ll be second nature.
"Understanding your workload and resource needs is the compass that guides your EC2 pricing strategy."
End
Focusing on these practical considerations—assessing resource requirements and understanding billing cycles—is essential to make the most of your EC2 experience. It sheds light on how seemingly mundane details can significantly impact costs and resource allocation. In the ever-changing landscape of cloud computing, these insights serve as your best defense against overspending and inefficiency.
Culmination
Understanding the pricing mechanisms behind Amazon EC2 is more than just numbers on a page. It lays the groundwork for efficient cloud resource management, impacting not only budget considerations but also operational effectiveness. The nuances of EC2 pricing models, such as On-Demand, Reserved, and Spot Instances, create a multifaceted landscape that can be navigated with the right knowledge.
Summarizing the Pricing Landscape
In this article, we've dissected various aspects of EC2 pricing. Each pricing model offers distinct advantages tailored to different usage scenarios. For instance, On-Demand Instances provide flexibility, perfect for projects with unpredictable workloads. In contrast, Reserved Instances can significantly cut costs for steady long-term applications. Spot Instances introduce another layer, appealing to those who can leverage temporary resources at a bargain.
One of the most critical insights is recognizing how various factors play into the overall cost structure. The type of instance, regional variations, and selected configurations all influence the final bill. As developers and IT professionals assess their resource needs, understanding these components ensures that they won't find themselves in the deep end when invoices arrive. The landscape is not just about costs; it's about aligning financial decisions with business objectives.
"A keen understanding of your needs will save both time and resources down the line."
Future Trends in EC2 Pricing
Looking ahead, the EC2 pricing model may continue to evolve, driven by technological advancements and shifting market demands. One notable trend is the increasing adoption of machine learning and artificial intelligence. As these technologies become more prevalent, we may see new pricing structures that cater specifically to workloads associated with such tools.
Additionally, we might expect more transparent pricing models, aligning costs with the actual usage in real-time. Tools that refine resource allocation and monitoring can likely enhance decision-making for developers and businesses. The potential for additional savings through improvements in cost management strategies should not be dismissed either. Savings Plans may further simplify purchasing choices, providing an easy way to manage costs across multiple services beyond EC2 alone.
In summation, the journey through EC2 pricing models informs strategic resource management. Staying ahead of the curve and adapting to emerging trends will be vital in harnessing the powerful benefits offered by cloud technologies while keeping costs effective.