[Errata] Chapter 3: Support Plan Pricing

[mcraghead]

Please describe the error you're reporting I think the wrong percentage is used at the Enterprise level for an example in that section. Discussion of an enterprise support plan for an organization spending $750,000/month. Book says it's a 3% "surcharge" at $22,500. However, at the enterprise level, you don't pay 3% until you go over a million dollars.

Please indicate the chapter or appendix, section, and page number where the error appears (if applicable) Chapter 3 Page 35 Paragraph - third

Please include any other comments or questions No additional comments.

[mcraghead]

Did anyone look at this or not? There is no response to what was submitted.

[dbclinton]

I think this was largely covered by issue #25: https://github.com/awsccp/awsccp.github.io/issues/25

[mcraghead]

@dbclinton No, this is different. Issue #25 was about the values at the margins straddling two different payment bands under the Enterprise plan (e.g. $150,000 being part of both the 10% band and the 7% band). This (potential) issue that I raise here is not related to the straddling bands.

In the example in the book that I pointed out, the organization spent $750,000/month. That value doesn't straddle any of the bands, so it's not related to #25 . It is firmly in the 5% band. However, the paragraph says that the organization should protect themselves with a 3% support surcharge at $22,500. That would be the correct amount if $750,000 was in the 3% band, but it's not. The organization would need to spend at least a million dollars to get to a 3% support fee. The amount they spent is in the 5% band. The correct answer, given the organization spend each month should be $37,500.

Am I missing something or is there an issue with my math? I want to make sure I get this correct.

Thank you.

[dbclinton]

Ok. I understand exactly your point now. You're correct: the book's example is wrong (and needs correcting). But your example support charge for $750k of spending ($37,500) is also wrong. The actual cost for support that month would be $52,500. According to the example on this page: https://aws.amazon.com/premiumsupport/pricing/ the first $150,000 of usage would be billed at 10% - meaning the support cost would be $15,000. The next $350,000 of usage gets a 7% support rate, which would come to $24,500. And support for the final $250,000 of usage would be billed at 5%, which would be $12,500. Meaning, that the total support bill for that month would be $52,000. This isn't hard math, I have no idea why it keeps getting me all mixed up. :) David

[mcraghead]

Thanks for the update and the correction in my math. My math was wrong because my understanding was wrong. I was computing based on where the monthly spend ended up in the Enterprise plan band. I didn't get that it was cumulative. I'm glad you pointed that out. Otherwise I would have gotten any question related to that incorrect. :-)

Thanks again.

[thekrol01]

@dbclinton $15,000 + $24,500 + $12,500= 52000

[dbclinton]

@thekrol01 Yup. Right you are. I updated my post. This sad journey never ends, does it? :)

[thekrol01]

@dbclinton ha ha, no worries :-)

[benpiper]

Adding another report via email:

The question was as follows:

8) Your company enrolled in the Business Support plan and, through the course of three months, consumed $33,000 of AWS services (the consumption was equally divided across the months). How much will the support plan cost the company for the full three months?:

The answer was $33k * 7% = $2310. However as I review the pricing example from AWS, the cost should be calculate as follows: 11k each month:

• 10% of first 0 - 10k: 10000 * 10% = 1000
• 7% charge from 10k-80k: 1000 * 7% = 70
• Total each month: 1070. Total price paid 3 months 1070*3 = 3210