Reserved Instances
A pricing model in AWS that allows customers to reserve capacity for a specified duration in exchange for a significant discount on instance costs.
Description
Reserved Instances (RIs) are a purchasing option provided by Amazon Web Services (AWS) that allows customers to reserve compute capacity in advance for one or three years. This model is particularly beneficial for businesses with predictable workloads, as it offers substantial savings compared to on-demand pricing. When customers commit to a Reserved Instance, they can choose between All-Available, Partial, or No Upfront payment options, allowing for flexibility based on budget and cash flow requirements. RIs are not tied to a specific instance but rather to a region and can be applied to instances of the same type, providing the ability to adjust resources as needed. Additionally, businesses can benefit from the ability to change instance sizes or types within the same family, which adds a layer of adaptability for evolving workloads. This model is especially advantageous for organizations running consistent applications, such as databases and enterprise applications, leading to predictable operational costs and improved budget management.
Examples
- A financial services company reserves RIs for their database workloads, saving up to 40% compared to on-demand pricing.
- An e-commerce platform uses RIs to ensure capacity during peak holiday seasons, achieving consistent performance while optimizing costs.
Additional Information
- Reserved Instances can be modified or exchanged for other RIs, providing flexibility in the face of changing needs.
- AWS offers two types of RIs: Standard RIs, which provide the highest savings but are less flexible, and Convertible RIs, which allow for changing the instance type or family.