AWS Reserved Instances
AWS Reserved Instances are a pricing model that allows customers to reserve capacity for Amazon EC2 instances for a specified term in exchange for a significant discount compared to on-demand pricing.
Description
AWS Reserved Instances provide customers with a flexible and cost-effective way to manage their cloud resources. By committing to use a specific instance type in a specific region for a one- or three-year term, customers can save up to 75% compared to on-demand rates. This model is particularly beneficial for businesses with predictable workloads that require consistent compute resources over time. Reserved Instances can be purchased in three payment options: All Upfront, Partial Upfront, and No Upfront, allowing customers to choose the best financial plan for their budget. Furthermore, Reserved Instances are not tied to a specific instance, meaning customers can change instance types or sizes within the same family as their needs evolve, offering flexibility alongside cost savings. This model is ideal for enterprises, startups, or organizations managing large-scale applications, databases, or development environments that require reliable and cost-effective compute resources.
Examples
- A tech startup uses AWS Reserved Instances to host its web application, securing a three-year commitment which allows for budget predictability while enjoying a 60% discount on instance costs.
- A large retail company reserves instances to run its e-commerce platform during peak seasons, ensuring they have the necessary capacity while benefiting from lower costs compared to on-demand pricing.
Additional Information
- Reserved Instances can be modified to accommodate changes in instance types or sizes, providing greater flexibility for evolving workloads.
- AWS offers a marketplace where customers can sell unused Reserved Instances, allowing for additional cost recovery options.