Amazon EC2 Pricing models

April 24, 2021 Notes

There are different pricing models for EC2 as mentioned below

On-Demand Instances
Reserved Instances
Spot Instances
Dedicated Hosts

1.On-Demand Instances

In this pricing model, we can use the instance as per our need according to hourly or per second (only for Linux Instances) and no upfront payments are needed. We can use the EC2 instance and its resource as per our needs and when payment comes we need to pay the amount of resource used in regards to the duration of usage.

2.Reserved Instances

If we have a good idea about the resource usage and needs of our application we can use Reserved
Instances. in reserved instances we will get instances in a particular availability zone with a predictable workload. so we can get a 75 % discount when compared to On-Demand Instances.
clients can commit to using EC2 over a 1- or 3-year term to reduce their total computing costs.

3.Spot Instances

Amazon EC2 Spot Instances are unused EC2 computing capacity available in the AWS cloud. Spot Instances are available at up to a 90% discount when compared to On-Demand instances. Based on the current demand and supply the price of Amazon EC2 spot Instances fluctuates periodically. If we want immediate resources on large scale and at the same time want to have less cost then we can go with Spot instances.

4.Dedicated Hosts

A Dedicated Host is a physical EC2 server dedicated for your use. Dedicated Hosts can help you reduce costs by allowing you to use your existing server-bound software licenses, including Windows Server, SQL Server, and SUSE Linux Enterprise Server (subject to your license terms), and can also help you meet compliance requirements.

Reference: https://aws.amazon.com/ec2/pricing/