AWS Instance Purchasing Options

Definition:

Pay-as-you-go instances with no long-term commitments or upfront payments.

Pros:

• Maximum flexibility
• No upfront cost
• No long-term commitment

Cons:

• Highest price per instance
• No capacity reservation

Real-world Example:

Development and testing environments with variable workloads.

Definition:

1 or 3-year commitment for specific instance types with significant discounts.

Pros:

• Up to 72% discount vs On-Demand
• Capacity reservation
• Predictable costs

Cons:

• Upfront payment required
• Long-term commitment
• Less flexibility

Real-world Example:

Production databases or web servers with steady state usage.

Definition:

Unused EC2 capacity available at up to 90% discount compared to On-Demand.

Pros:

• Lowest cost (up to 90% off)
• Great for flexible workloads
• Cost optimization

Cons:

• Can be interrupted with 2-min notice
• Not suitable for critical workloads
• Variable pricing

Real-world Example:

Batch processing, data analysis, or containerized workloads.