EC2 Instance Purchase Options
Introduction
There are seven types of EC2 instance purchase options available on Amazon Web Services (AWS). Each option has its unique pricing model, usage requirements, and benefits. In this article, we will explore each option in detail.
Purchase Options
1. On-Demand Instances
On-Demand Instances are billed by the second when launched. You can pay for the instances per hour or per second, with a 60-second minimum. No commitment is required for such instances.
2. Savings Plan
Savings Plan instances offer a discount when a commitment of 1 or 3 years is made to use a consistent amount per hour. Use this option when you can commit to consistent usage but do not require a consistent configuration.
3. Reserved Instances
Reserved Instances offer a discount when a commitment of 1 or 3 years is made to keep the same configuration. Use this when you need a consistent configuration and capacity reservation. Reserved Instances are offered at up to a 75% discount. While not deprecated, AWS encourages using the Savings Plan instead of Reserved Instances as the preferred way to save on EC2 instances.
4. Spot Instances
Spot Instances are heavily discounted instances that utilize unused EC2 capacity with no commitment. They are useful if your applications can tolerate interruptions. Spot Instances are offered at up to a 90% discount off the On-Demand price with no prior commitment.
5. Dedicated Hosts
Dedicated Hosts are entire physical hosts fully dedicated to running EC2 instances. Discounts are available for existing per-socket, per-core, or per-VM software licenses.
6. Dedicated Instances
Dedicated Instances are instances running on single-tenant hardware. Dedicated Hosts and Dedicated Instances are useful when software compliance requirements necessitate isolation.
7. Capacity Reservations
Capacity Reservations is an option that reserves capacity for EC2 instances in a specific Availability Zone. Capacity reservations are billed at the equivalent rate of On-Demand instances, whether they are used or not.
Conclusion
Each EC2 instance purchase option has its unique benefits and requirements. Understanding these options is crucial in choosing the right one for your needs. In my next article, I will be writing about how to choose the appropriate billing option.
Frequently Asked Questions
Q: What is the difference between Savings Plan and Reserved Instances?
A: Savings Plan and Reserved Instances both offer discounts for committed usage, but Savings Plan does not require a consistent configuration, while Reserved Instances require a consistent configuration.
Q: What are Spot Instances?
A: Spot Instances are heavily discounted instances that utilize unused EC2 capacity with no commitment.
Q: What is the benefit of Dedicated Hosts?
A: Dedicated Hosts are entire physical hosts fully dedicated to running EC2 instances, providing discounts for existing per-socket, per-core, or per-VM software licenses.
Q: What is Capacity Reservations?
A: Capacity Reservations is an option that reserves capacity for EC2 instances in a specific Availability Zone, billed at the equivalent rate of On-Demand instances.
