EC2 pricing model
While the standard cloud price model is the pay-as-you-go model, AWS provides multiple options to optimize your cost further. As servers are a significant part of any IT infrastructure, it is better to understand all available cost options and get the best out of your dollar. The followings are the four different ways to purchase compute in AWS:
- On-Demand: Pay for compute capacity by the second with no long-term commitments. It is best suited for fluctuating workloads, for example, stock trading. It is the default choice when you spin up an instance and is also suitable for a quick experiment.
- Reserved Instance (RI): You can commit 1- or 3 years to a specific EC2 instance family and receive a significant discount of up to 72% off On-Demand prices. It is best for a steady workload where you know not much fluctuating, for example, internal HR portal. Reserve instance like a coupon where you pay in advance, and it applies automatically when your spin-up instance belongs...
