Topic 43

Pricing and Free Tiers Across the Clouds

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All three major clouds — AWS, Google Cloud, and Azure — price the same fundamental way: metered usage, billed by the unit, with on-demand as the default and discounts available through commitment or interruptibility. That shared model is the right frame. But the details differ in ways that matter, especially for someone deciding where to learn or where to run a first project.

The most important area of difference is the free offer. Every provider gives new accounts some amount of free usage, but the structure, the limits, and the honest caveats are not the same. This topic maps those differences as accurately as possible — and then flags the most important caveat of all: cloud pricing changes often. The specifics described here reflect what was publicly documented as of June 2026. Always check the provider's live pricing page before making any cost decision.

Same Model, Different Numbers

The per-unit rates for compute, storage, and data transfer differ across providers and change over time. Google Cloud was an early adopter of per-second billing for compute; the others followed. All three have different on-demand rates for different machine families, different per-GB storage rates by tier, and different egress rates by destination region. At the level of this course, those numbers are less important than the structural understanding — and they change enough that specific figures go stale quickly.

What does not change is the shape: usage-based, itemized, with the same categories (compute, storage, data transfer, managed services) showing up on every bill regardless of provider. If you understand one cloud's bill structure, you understand them all at the conceptual level.

Free Offers Compared

Each provider offers new accounts a way to explore at little or no cost. The structures are genuinely different, which matters when you are deciding where to start.

AWS updated its free offering in July 2025 from the previous "12 months of specific service allowances" model to a credits-based approach. New accounts receive approximately $100 in credits at sign-up, with the ability to earn up to an additional $100 through program activities, usable over roughly six months. AWS also maintains a set of "always-free" allowances — services that remain free in limited quantities indefinitely, regardless of account age. Note, however, that under AWS's current Free account plan, the account itself ends after about six months or when its credits run out unless you upgrade to a Paid plan — the always-free allowances exist within that structure, so the overall free account does not continue indefinitely. If you read older documentation still describing "750 hours of EC2 per month for 12 months," that program no longer applies; check the current AWS Free Tier page for the current structure.

Google Cloud offers new accounts a $300 credit (as of this writing) usable over 90 days, plus a set of permanently free-tier resources — small amounts of compute, storage, and database access — that continue after the initial credit expires. The always-free tier is notable for covering a modest virtual machine (the e2-micro instance in certain regions) at no cost indefinitely, which makes it a convenient baseline for learning experiments.

Azure gives new accounts a free account that includes a $200 credit usable for 30 days, 12 months of limited access to certain popular services, and a set of always-free services with no expiry. The 12-month portion covers specific service sizes (small databases, a modest virtual machine) up to defined usage caps — after that period or after the caps are reached, standard billing applies.

Most cloud sign-ups ask for identity verification and often a payment method, but the exact requirement depends on the provider, account type, region, and student or free-plan eligibility — always check the live sign-up page. Providing a payment method does not mean you will be charged: it is only charged if you explicitly upgrade beyond the free tier limits. Setting a budget alert (Topic 42) from day one is the recommended safeguard for anyone learning on any of the three.

Free Data Transfer Allowances

Data transfer out (egress) to the internet is billed after a free monthly allowance on all three providers. As of June 2026, AWS and Azure both offer the first 100 GB per month of outbound data transfer at no charge. Google Cloud gives 200 GB per month of free internet egress on its Standard network tier, per region (in place since 2023); the always-free tier also separately includes small per-service amounts. For small personal projects, learning environments, and early-stage development, these allowances comfortably cover most scenarios. Data transfer in (ingress) remains free without limit on all three, as it has been since each provider launched.

The Honest Caveat

Cloud pricing is one of the most frequently updated areas of the cloud industry. New machine types launch, old ones are discounted or retired, free tier structures change (as AWS demonstrated in July 2025), and egress fees have generally moved downward over the years as competition has intensified. Any specific figure in this topic — credit amounts, free tier allowances, always-free service limits — should be verified against the provider's live documentation before you rely on it for a decision.

The structural understanding — same model, different details, free offers are real but limited, egress is free up to a point — is what this course provides. The current numbers are yours to look up; the conceptual frame makes them interpretable when you do.

Free offers across the three major clouds (as of June 2026 — verify before use)
Free offers
new-account free usage from each provider
AWS
credits-based (~$100 sign-up + up to $100 earned, ~6 months) + always-free
Google Cloud
$300 credit / 90 days + permanent always-free tier (incl. small VM)
Azure
$200 credit / 30 days + 12-month service access + always-free
Free sign-up offerAWS ~$100 credits at sign-up + up to $100 earned (~6 months); plus always-free allowancesGoogle Cloud $300 credit over 90 days; plus permanent always-free tierAzure $200 credit over 30 days + 12-month limited service access + always-free
Always-free highlightsAWS Lambda, DynamoDB, S3 (limited), and others — varies by serviceGoogle Cloud e2-micro VM (select regions), Cloud Storage (5 GB), BigQuery (1 TB queries/mo)Azure Azure Functions, Cosmos DB (limited), Blob Storage (5 GB), and others
Free data transfer outAWS first 100 GB/month to the internet freeGoogle Cloud 200 GB/month free internet egress on the Standard network tier (per region, since 2023); always-free tier also includes small per-service amountsAzure first 100 GB/month to the internet free
Cost management toolsAWS AWS Cost Management and Cost ExplorerGoogle Cloud Google Cloud Billing with budget alerts and BigQuery exportAzure Microsoft Cost Management and Azure Advisor
Common Confusions
  • "Free tier means free forever for everything." Free tiers are limited by service, by usage amount, and usually by time. Once you exceed the usage limit or the time window, standard billing applies. Always-free allowances cover specific services in specific quantities — not all services, not unlimited use.
  • "AWS still offers 12 months of 750 compute hours per month." That was the previous structure. As of July 2025, AWS moved to a credits-based model for new accounts. If you read documentation describing the old program, it is out of date. Check the current AWS Free Tier page.
  • "The cheapest sticker price wins." The total cost of running a workload depends on compute, storage, egress, discounts, and fit — not just the listed on-demand rate. Egress pricing, free tier structure, and available commitment discounts often matter more than the headline per-hour price for a given machine type.
  • "Free offers are identical across clouds." They differ in shape — credits versus usage allowances versus time windows — and in which services they cover. Google Cloud's permanent always-free VM is different in kind from Azure's 12-month offer, which is different from AWS's credits model.
Why It Matters
  • Knowing the structure of each provider's free offer is what lets you make an informed decision about where to start learning or experimenting — without accidentally accumulating charges you did not expect.
  • The AWS free tier change in July 2025 is a real example of why "pricing changes often" is not a throwaway caveat — it is a practical rule. The conceptual model stays stable; the numbers need regular verification.
  • Understanding that all three clouds use the same fundamental billing model means the skills you build reading and managing a bill on one provider translate directly to the others.

Knowledge Check

Which statement best describes how AWS, Google Cloud, and Azure approach cloud pricing?

  • Each uses a different fundamental model — one charges flat fees, one by request only
  • Google Cloud is consistently cheapest because it introduced per-second billing first
  • All three use the same billing model — compute, storage, egress — but rates differ
  • They offer identical pricing that differs only by region, not by provider

Since July 2025, how does AWS structure its free offering for new accounts?

  • 12 months of free compute at 750 hours per month of a specific instance type
  • A credits-based model — roughly $100 at sign-up plus up to $100 earned, usable over ~6 months
  • Unlimited free access to every AWS service across all regions for the first 30 days after sign-up
  • A permanent always-free tier covering every AWS service with no usage cap

What happens to data transfer into the cloud (ingress) on most major cloud providers?

  • It is free — all three major providers do not charge for data arriving into the cloud
  • It is billed at the same per-gigabyte rate as data transfer out
  • It is free only for customers who also hold a commitment discount plan
  • Providers charge for ingress only after a customer has uploaded more than one terabyte that month

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