EC2 Instance Purchasing Options (Most Common)

EC2 Instance Purchasing Options (Most Common)

On-Demand
On-demand purchasing allows you to choose any instance type you like and provision/terminate it at any time (on-demand)

1. is the most expensive purchasing option
2. is the most flexible purchasing option.
3. you are only charged when the instance is running (and billed by the hour)
4. you can provision/terminate and on-demand instance at anytime.

Reserved:
Reserved purchasing allows you to purchase an instane for a set time period of one (1) or three (3) years.

1. This allow for a significant price discount over using on-demand.
2. You can select to pay upfront, partial upfront, no upfront.
3. Once you buy a reserved instance, you own it for the selected time period and are responsible for the entire price - regardless of how often you use it.

Spot:
Spot pricing is a way for you to "bid" on an instance type and only pay for and use that instance when the spot price is equal to or below your "bid" price.