What Does AWS Mean?
AWS stands for Amazon Web Services, a cloud computing platform created by Amazon that allows individuals and businesses to:
- Put your website online
- Save your files (like photos and documents)
- Run your apps and programs
- Manage databases
- Share content with people anywhere in the world
You only pay for what you actually use, like paying for electricity or water.
What Are AWS Credits?
AWS Credits are like gift cards for Amazon’s cloud services. They’re free money added to your account to help pay your bills.
Think of them like:
- Gift cards that can only be used on AWS
- Coupons that automatically apply at checkout
- Free trial money to help you get started
You can’t turn them into cash, but they automatically pay your AWS bills until they run out or expire.
Key AWS Abbreviations and What They Mean
Below are the most common AWS abbreviations you’ll encounter, explained in simple language.
1. EC2 – Elastic Compute Cloud
EC2 lets you rent a virtual server in the cloud instead of buying physical hardware.
What It Is Used For:
- Running websites
- Running applications
- Deploying software
- Testing products
Instead of buying physical hardware, you get a virtual server that runs 24/7 in the cloud. You only pay for when it runs and how powerful it is.
2. S3 – Simple Storage Service
S3 lets you store files in the cloud.
What It Is Used For:
- Images
- Videos
- PDFs
- Backups
- Website assets
Think of S3 like Google Drive or Dropbox, but built specifically for websites and applications. It is Highly secure, scalable and reliable.
3. RDS – Relational Database Service
RDS lets you create and manage databases without needing to be a database expert.
What It Is Used For:
- User accounts
- Orders
- Content management
- Business data
A database is where your application stores organised information like user accounts and orders. RDS handles the technical setup and maintenance automatically.
4. Lambda – AWS Lambda
AWS Lambda is a serverless computing service. You don’t set up or manage any servers. AWS automatically runs your code only when it’s triggered.
What It Is Used For:
- Automations
- Background tasks
- Event-driven applications
You write code, AWS runs it automatically when needed, and you only pay for the time it actually runs. No idle servers. No constant billing.
5. CloudFront – Content Delivery Network (CDN)
CloudFront is AWS’s Content Delivery Network (CDN). A CDN stores copies of your content in multiple locations worldwide so users can access it faster.
What It Is Used For:
- Faster website loading
- Reduced server costs
- Global audience reach
When someone visits your site from Nigeria, Europe, or the USA, CloudFront automatically serves content from whichever location is closest to them.
6. IAM – Identity and Access Management
IAM controls who has access to which resources in your AWS account. It makes sure each person or service has exactly the permissions they need, nothing more, nothing less.
What It Is Used For:
- User permissions
- Security control
- Access roles
7. VPC – Virtual Private Cloud
A VPC is your own isolated network within AWS. Think of it like having your own private, secure section inside a shared building; the AWS building.
What It Is Used For:
- Isolating resources
- Improving security
- Structuring cloud architecture
What Is Cloud Computing?
Cloud computing means renting computer power and storage over the internet instead of buying and maintaining your own physical equipment.
Key Characteristics:
- Pay only for what you use
- Scalable (grows with your needs)
- Accessible anywhere
- No hardware maintenance needed
This is why AWS credits are so valuable; they let you build and test your ideas without spending money upfront.
Who Is Eligible for AWS Credits?
AWS credits are available to:
- New users
- Startup founders
- Students and educators
- Nonprofits and NGOs
- Hackathon participants
- Early-stage builders
How to Access AWS Credits (Step-by-Step)
Option 1: AWS Free Tier
AWS gives new accounts free usage limits on many services for 12 months.
Steps:
- Visit aws.amazon.com
- Create an account
- Add a credit or debit card (required but won’t be charged during free tier)
- Choose a free support plan
Best For:
- Beginners
- Learners
- Small experiments
Option 2: AWS Activate (Startups)
AWS’s official startup support program.
Credit Range:
$1,000 – $100,000+
Steps:
- Visit aws.amazon.com/activate
- Apply under:
- Activate Founders
- Activate Portfolio
- Submit startup details
- Wait for approval
Credits are applied automatically to your billing account.
Option 3: AWS Educate (Students)
AWS program for students and educators.
Steps:
- Visit aws.amazon.com/education/awseducate
- Sign up
- Verify student status
Option 4: AWS Credits via Hackathons
AWS sponsors many tech events and competitions.
How It Works:
- Participate
- Complete challenges
- Receive credits
Option 5: AWS Credits for Nonprofits
What It Is:
Discounted or free AWS services for NGOs.
Steps:
- Register on TechSoup
- Verify nonprofit status
- Apply for AWS nonprofit benefits
How to Check Your AWS Credits
- Log in to AWS Console
- Go to Billing
- Click Credits
You’ll see:
- Credit balance
- Expiration date
- Applicable service
Common AWS Terms Beginners Should Know
- Region – Physical location where AWS data centres are located
- Availability Zone (AZ) – Isolated data centres within a region
- Instance – A running virtual server
- Billing Alert – Notification when usage exceeds limits
Final Thoughts
AWS credits remove the financial barrier that stops many people from building digital products. Once you understand the abbreviations and terms, AWS becomes less intimidating and more empowering. For entrepreneurs, creators, nonprofits, and startups, AWS credits are not just free money; they are opportunity capital.
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