EC2 Instance Purchasing Options
Learn about EC2 instance purchasing options and how we can reduce costs.
AWS EC2 provides multiple EC2 purchasing options that can be used for different use cases. It’s important that we choose the right EC2 option for our use case to avoid overpaying. Let’s look at these options from AWS with examples.
On-Demand Instances
On-Demand Instances can be provisioned and terminated by us as needed, and we simply pay by the second for the instances we launch. This option is good for use cases where we don’t know the required number of EC2 instances for our applications in advance. We can use On-Demand Instances to scale our instances anytime.
Savings Plans
Savings Plans are a flexible pricing model offered by AWS with lower prices compared to on-demand in exchange for a commitment of a set usage per hour for a one–three year term. If our use case requires a basic account of hours spent for a long term (one–three years), we can use a savings plan to get a discount on the on-demand pricing of the instances. There are three types of savings plans:
- Compute Savings Plan: This includes the basic costs across AWS Lambda, Fargate, and EC2.
- EC2 Savings Plan: This plan only includes the basic cost of the AWS EC2 service.
- Sagemaker Savings Plan: This plan includes the basic cost of the AWS SageMaker service.
Reserved Instances
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