Amazon offers three AWS pricing models that suit the needs of different sized companies at various stages of their life cycles. Their most well known on-demand model charges based on actual usage (hourly compute/storage or I/O capacity consumption). It has created a simple way to reduce costs along with any hesitations that accompany the thought of commitment. AWS also offers the option to optimize cloud costs by reserving resources with Reserved Instances (RI), reducing their price by 30-50%. Finally, for short term or non-mission critical apps, AWS offers Spot Instances, where you negotiate a price and AWS delivers. While the AWS pricing models seem simple to use, if they are given a bit of extra attention with the proper knowledge and planning, you will be able to achieve far greater pricing advantages. Check the following seven guidelines to help you optimize cloud costs with AWS.