AWS EC2 Pricing
AWS Tutorial: Amazon EC2 Pricing
Welcome to the Amazon EC2 Pricing lesson. AWS provides highly flexible purchasing options so you can optimize your costs based on how long you need a server and how predictable your traffic is.
Why Learn EC2 Pricing?
Cloud costs can spiral out of control if you use the wrong pricing model for your workload. By understanding how On-Demand, Reserved, and Spot instances work, you can save your company up to 90% on their monthly AWS bill.
Tutorial Overview
In this tutorial, you will explore the four main ways to pay for Amazon EC2 instances:
- On-Demand Instances
- Reserved Instances
- Spot Instances
- Dedicated Hosts
EC2 Pricing Models
- On-Demand Instances: You pay for compute capacity by the second with no long-term commitments. This is the most flexible option, perfect for short-term, spiky, or unpredictable workloads.
- Reserved Instances: You make a 1-year or 3-year commitment to a specific instance type and region, in exchange for a significant discount (up to 72% off On-Demand). Best for applications with steady state usage.
- Spot Instances: You request spare Amazon EC2 computing capacity for up to 90% off the On-Demand price. However, AWS can reclaim these instances with a 2-minute warning. Ideal for fault-tolerant, flexible workloads like background batch processing.
- Dedicated Hosts: A physical EC2 server dedicated entirely for your use. This helps you address strict corporate compliance and regulatory requirements or use existing server-bound software licenses.
Exercise
?Which EC2 pricing option provides the steepest discount but can be interrupted by AWS?