Instance purchasing options – On-Demand, Spot, and Reserved Instances

As we continue our exploration of Amazon EC2 instance types and families, it is essential for you to understand various purchasing options available to meet your specific needs and budget. EC2 offers five primary purchasing options: On-Demand, Reserved, Spot, Savings Plans, and Dedicated Instances. In this section, we will delve into each of the purchasing options, explaining their key features, benefits, and use cases to help to make informed decisions for your workloads:

• On-Demand Instances: On-Demand Instances offers the most straightforward and flexible pricing model. With this option, you pay for the compute capacity by hour or second, depending on the instance type, with no long-term commitments or upfront payments required. On-Demand Instances are ideal for users who want the following:
  • The ability to scale capacity up or down without any commitments.
  • The flexibility to test new applications or...