Understanding Compute, Storage, and Network Costs
When you look at your cloud bill, you will notice that most of your charges fall into three main categories: compute, storage, and network. Understanding what each of these means and how they are measured will help you make sense of your costs and identify areas for savings.
Compute refers to the processing power you use. This includes virtual machines (instances), serverless functions, and containers. Compute is typically billed by the hour, minute, or even second, depending on the service. You are charged for the time your resources are running, regardless of whether they are fully utilized.
Storage covers the data you keep in the cloud, such as files, databases, and backups. Storage costs are usually billed per gigabyte (GB) per month, and sometimes by the number of requests or retrievals. The more data you store, and the longer you keep it, the higher your storage costs.
Network costs are associated with moving data in and out of the cloud, or between different regions and services. This is often referred to as data transfer. Network charges are typically measured in gigabytes (GB) transferred, and rates can vary depending on the direction and destination of the data.
Each of these categories has its own billing units:
-
Compute: billed per hour, minute, or second of resource usage;
-
Storage: billed per gigabyte per month stored;
-
Network: billed per gigabyte transferred.
Your cloud usage directly affects costs. Bursty compute workloads get expensive if instances are not scaled down, storage costs grow with large datasets and old backups, and heavy data transfers increase network charges. Choosing the right services and scaling strategies is essential for cost control.
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When you look at your cloud bill, you will notice that most of your charges fall into three main categories: compute, storage, and network. Understanding what each of these means and how they are measured will help you make sense of your costs and identify areas for savings.
Compute refers to the processing power you use. This includes virtual machines (instances), serverless functions, and containers. Compute is typically billed by the hour, minute, or even second, depending on the service. You are charged for the time your resources are running, regardless of whether they are fully utilized.
Storage covers the data you keep in the cloud, such as files, databases, and backups. Storage costs are usually billed per gigabyte (GB) per month, and sometimes by the number of requests or retrievals. The more data you store, and the longer you keep it, the higher your storage costs.
Network costs are associated with moving data in and out of the cloud, or between different regions and services. This is often referred to as data transfer. Network charges are typically measured in gigabytes (GB) transferred, and rates can vary depending on the direction and destination of the data.
Each of these categories has its own billing units:
-
Compute: billed per hour, minute, or second of resource usage;
-
Storage: billed per gigabyte per month stored;
-
Network: billed per gigabyte transferred.
Your cloud usage directly affects costs. Bursty compute workloads get expensive if instances are not scaled down, storage costs grow with large datasets and old backups, and heavy data transfers increase network charges. Choosing the right services and scaling strategies is essential for cost control.
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