Therefore, you will not want to launch a Spot Instance if you want to immediately launch a server. Depending on your maximum bid price and Amazon's excess compute capacity and Spot Price, it may take several days or even weeks before an Instance is actually launched. When you make a request to Amazon for a Spot Instance, you must wait until Amazon can fulfill that request. Typically, Amazon will update the Spot Price several times throughout the day. However, if either the Spot Price exceeds your maximum bid price or Amazon needs your Spot Instance in order to fulfill an On-Demand or Reserved Instance launch request, your Spot Instance will be terminated. A Spot Instance will continue to run as long as the Spot Price remains below your maximum bid price. A running Spot Instance will be billed at the variable Spot Price, not your bid price. If the Spot Price for Spot Instances falls below your maximum bid price, a Spot Instance will be launched. You can set a maximum bid price that you're willing to pay for an instance (e.g. In order to maximize the utilization rates of existing cloud resources, Amazon offers Spot Instances which allow you to bid on unused compute capacity on EC2. If instance capacity is ever 100% utilized in a particular availability zone, Amazon reserves the right to terminate a Spot Instance so that it can be provisioned in order to satisfy a Reserved Instance launch request. If instance capacity ever becomes limited in a particular availability zone, Reserved Instance users have top priority when launching instances. Another benefit of Reserved Instances is that you have priority over On-Demand and Spot Instance users. Remember, you can always use On-Demand Instances to satisfy any additional resource needs. For example, if you know that you will always have at least 4 instances running at a steady rate for the next year, you might consider purchasing 4 Reserved Instances for a 1-year team. Reserved Instances are an ideal option for businesses that have very predictable and steady usage requirements, and can provide significant cost savings over time. Launching an instance is no different in the case of Reserved and On-Demand instances, however the system will apply the lower usage rate based on the number of Reserved Instances in that zone of the same type. When you purchase Reserved Instances of a particular type in an availability zone and you have existing instances of the same instance type running in that zone, they will automatically be charged at the lower usage rate. The main difference is how Amazon bills your EC2 instance usage. From a technical perspective, EC2 instances are treated the same as on-demand instances inside the Dashboard. When you purchase a Reserved Instance, you must specify a particular instance type (e.g. Pricing varies depending on size and term length. The one-time fee is available for 1 and 3 year terms. You also have the option of reserving EC2 instances where you pay a one-time payment up-front in order to secure a lower server usage charge when those instances are used. You will be charged at an hourly rate until the instance is terminated. There is a fixed price for a particular instance type. The most common instance purchase option follows the On-Demand pricing model. The table below highlights some of the key differences. It's important to properly understand the costs and benefits associated with each option. There is no difference in terms of the underlying hardware that is being launched. The different purchase options are available for all EC2 Instance Types.ĭepending on your technical and financial requirements, one of these options might provide a comparative advantage over the other. Amazon offers 3 different ways to purchase EC2 instances.
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