Comparing the Pricing of AWS, Azure, and Google Cloud: Virtual Machine Costs Explained
When selecting a cloud provider for running Virtual Machines (VMs), pricing is often one of the top considerations. With AWS, Azure, and Google Cloud being the leading cloud providers, understanding their pricing models and cost structures can help you make an informed decision.
VM Pricing Models Across AWS, Azure, and Google Cloud
Each cloud provider offers a range of VM sizes and types, designed for different workloads such as general-purpose, compute-optimized, memory-optimized, and storage-optimized tasks. While the basic pricing models might seem similar across AWS, Azure, and Google Cloud, subtle differences in cost components and discounts can impact the total expense.
1. Amazon Web Services (AWS)
AWS charges for VMs (called EC2 instances) based on factors like instance type, region, operating system, and whether the VMs are reserved, spot instances, or on-demand. Some key aspects of AWS VM pricing include:
On-Demand Instances: You pay by the second (with a minimum of 60 seconds) for EC2 instances. Costs vary significantly depending on the region, instance type, and operating system. For example, running a basic t2.micro Linux instance in the Ohio region costs around $0.0116 per hour.
Savings Plans and Reserved Instances: Committing to 1- or 3-year terms can provide substantial discounts (up to 72% off the on-demand price).
Spot Instances: Allow you to take advantage of unused capacity for steep discounts, although they can be terminated by AWS if the capacity is needed elsewhere.
AWS is relatively transparent with pricing details. The AWS Pricing Calculator allows you to estimate costs for different VM types, regions, and OS. However, some costs, like data transfer and storage I/O, can be more complex to predict and may require deeper analysis.
2. Microsoft Azure
Azure’s VM pricing, similar to AWS, is determined by instance size, region, and OS. Azure has several VM series catering to different workloads (e.g., general-purpose B series, compute-optimized F series). Key aspects include:
Pay-As-You-Go: Azure’s on-demand VMs are billed per second, with prices varying by region and VM size. For instance, a B1s Linux instance in the East US region costs around $0.008 per hour.
Azure Reserved Instances: By reserving VMs for 1- or 3-year terms, you can save up to 72% compared to the pay-as-you-go rates.
Spot VMs: Similar to AWS, Azure offers spot VMs that allow you to use unused capacity at a reduced cost. These can be preempted based on demand, so they're ideal for flexible, non-critical workloads.
Azure provides detailed pricing information directly in its portal and through the Azure Pricing Calculator. It also offers a unique benefit: Azure Hybrid Benefit, which allows customers to use their on-premises Windows Server or SQL Server licenses with Software Assurance to get discounts on Azure VMs. This can significantly reduce the cost of running Windows VMs on Azure compared to AWS and Google Cloud.
3. Google Cloud Platform (GCP)
Google Cloud offers Compute Engine VMs with a pricing model that focuses on simplicity and discounts for sustained use:
On-Demand Pricing: Similar to AWS and Azure, Google Cloud charges per second for VMs, with no minimum time requirement. A e2-micro instance running in the Iowa region costs around $0.006 per hour.
Sustained Use Discounts: GCP automatically applies discounts (up to 30%) based on how long a VM runs each month, rewarding continuous usage without requiring long-term commitments.
Committed Use Contracts: Customers can commit to 1- or 3-year terms to receive discounts on VM usage, similar to the reserved instance model of AWS and Azure.
Preemptible VMs: Equivalent to AWS's Spot Instances and Azure's Spot VMs, preemptible VMs offer significant savings for workloads that can handle interruptions.
GCP's pricing information is accessible and straightforward through its console and pricing calculator. One notable advantage is the custom VM option, allowing users to select a precise number of virtual CPUs (vCPUs) and memory for their workloads, potentially leading to more cost-effective configurations.
Operating System Costs: Windows vs. Linux
When running Windows VMs, the choice of cloud provider can significantly impact costs:
Azure: Due to its ownership of Windows, Azure can offer Azure Hybrid Benefit, allowing customers to use existing Windows Server licenses to reduce the cost of running Windows VMs. This benefit makes Azure potentially more cost-effective for Windows workloads compared to AWS and GCP.
AWS: Windows VMs on AWS include the cost of Windows licensing in the per-hour pricing. While reserved instances and savings plans can reduce overall costs, AWS does not provide an equivalent to the Azure Hybrid Benefit.
Google Cloud: Similar to AWS, GCP includes Windows licensing in the per-hour cost of Windows VMs. However, it does not offer a direct discount similar to Azure’s Hybrid Benefit.
For Linux VMs, pricing differences are generally less pronounced because there are no licensing fees associated with the OS. All three providers offer a range of free or low-cost Linux distributions, with charges based primarily on the chosen VM size and region.
Pricing Transparency in Each Cloud Console
AWS: Offers a detailed pricing calculator and cost explorer. However, some users find AWS pricing complicated due to the extensive list of services and hidden costs, such as data transfer fees.
Azure: The Azure portal provides clear pricing information, including the Azure Pricing Calculator, which allows for estimating costs based on specific configurations. The transparency around the Azure Hybrid Benefit adds value for Windows users.
Google Cloud: Google Cloud’s pricing calculator is user-friendly, and its sustained use discounts are automatically applied, simplifying cost management. The custom VM configuration option provides flexibility and cost optimization opportunities.
Conclusion
Each cloud provider has distinct advantages in terms of VM pricing. Azure offers a clear benefit for Windows VMs through the Azure Hybrid Benefit, which can significantly reduce costs. AWS provides extensive VM options, with potential savings through reserved instances and spot pricing, though it can be complex to navigate. Google Cloud is known for its automatic sustained use discounts and flexibility in creating custom VMs, which can lead to cost efficiencies.
When choosing a provider, consider your specific workload, region, operating system, and potential for long-term commitments to maximize cost savings. Using each provider's pricing calculator and understanding the nuances of their pricing models is crucial to making an informed decision.
