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variable costs

  • Definition
    • Costs that rise and fall with actual consumption — the pay-as-you-go model.
    • Also called operational expenditure (OpEx).
  • How AWS bills variably
    • Per second or per hour for compute, per GB-month for storage, per request for AWS Lambda and API calls, per GB for data transfer out.
    • No charge when a resource is not running (a stopped EC2 instance still incurs EBS storage cost, but no compute cost).
  • Why it matters
    • No idle capacity to pay for; costs track business activity.
    • Failed experiments cost hours of compute rather than a hardware purchase.
  • The catch
  • Contrast with
    • fixed costs — bought up front, sized for peak, paid regardless of use.

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