Features of On-demand, Reserved, Spot and Dedicated EC2 instances

  The key features of Amazon EC2 On-Demand Instances are:

  1. Flexible and Scalable: On-Demand Instances allow you to scale your compute resources up or down as needed to meet the changing demands of your application. You can launch and terminate instances as required without any long-term commitments.

  2. Pay-as-you-go Pricing: With On-Demand Instances, you pay only for the compute capacity you use, by the second, with no upfront costs or long-term commitments. This makes them well-suited for workloads with unpredictable usage patterns or short-term requirements.

  3. No Upfront Commitment: On-Demand Instances do not require any long-term commitments or upfront payments. You can start, stop, or terminate instances as needed, without penalty.

  4. Suitable for Diverse Workloads: On-Demand Instances are suitable for a variety of use cases, including web servers, databases, virtual desktops, and other applications with short-term, unpredictable workloads or spikes in traffic.

  5. Per-Second Billing: On-Demand Instances are billed in one-second increments, with a minimum of 60 seconds, which helps optimize costs for irregular or short-lived workloads.


The key features of Amazon EC2 Reserved Instances are:

  1. Discounted Pricing: Reserved Instances offer a discounted hourly rate compared to On-Demand Instances in exchange for a 1-year or 3-year upfront commitment.

  2. Capacity Reservation: Reserved Instances purchased for a specific Availability Zone provide a capacity reservation, improving the likelihood of capacity availability when you need it. Reserved Instances purchased for a Region do not provide a capacity reservation.

  3. Billing Commitment: With Reserved Instances, you are billed for the entire term of the reservation, regardless of actual usage, to receive the discounted rate.

  4. Flexibility: Reserved Instances have less flexibility compared to On-Demand Instances, as you are committed to the term of the reservation.

  5. Availability for Other AWS Services: In addition to Amazon EC2, the Reserved Instance pricing model is also available for Amazon RDS, Amazon ElastiCache, Amazon OpenSearch Service, Amazon Redshift, and Amazon DynamoDB.


The key features of Amazon EC2 Spot Instances are:

  1. Discounted Pricing: Spot Instances can provide discounts of up to 90% compared to On-Demand pricing, allowing you to significantly reduce the cost of running your applications.

  2. Flexible Workloads: Spot Instances are best suited for flexible workloads that can tolerate interruptions, as they can be terminated by Amazon EC2 when the capacity is needed back.

  3. Interruption Handling: When Amazon EC2 needs the capacity back, Spot Instances can be interrupted with a 2-minute notification. You can choose the interruption behavior, such as termination, stopping, or hibernation.

  4. Partial Hour Billing: If your Spot Instance is interrupted within the first hour, you are not charged for the partial hour used. However, if you stop or terminate the instance, you pay for any partial hour used.

  5. Spot Pricing: The Spot price for each instance type in each Availability Zone is determined by long-term trends in supply and demand for EC2 spare capacity. You pay the Spot price that's in effect, billed to the nearest second.

  6. Diversification: To ensure the reliability of your Spot Instance workloads, it's recommended to diversify your usage across multiple instance types and Availability Zones.


The key features of Amazon EC2 Dedicated Instances are:

  1. Dedicated Hardware: Dedicated Instances run on physical servers dedicated to a single AWS customer. This provides you with additional isolation and control over your compute resources.

  2. Pricing: Dedicated Instances are billed at a higher hourly rate compared to On-Demand Instances, but the pricing is still variable based on usage.

  3. Capacity Reservation: Dedicated Instances provide a capacity reservation, ensuring that your instances will be available when you need them.

  4. Tenancy Options: You can choose between "Dedicated" and "Host" tenancy options for your Dedicated Instances. Dedicated tenancy provides isolation at the instance level, while Host tenancy provides isolation at the physical server level.

  5. Licensing: Dedicated Instances can be beneficial for running software that requires a per-socket or per-core license, as you have dedicated access to the physical hardware.

  6. Compliance: Dedicated Instances can help you meet certain compliance requirements, such as those related to data sovereignty or data residency.

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