EC2 purchasing options

We will now look at the types of EC2 contracts.

On-Demand

In this offer, you don’t need to contract for a specific time period. AWS charges according to the time you use the server. You can provision a server, shut it down, and release the server whenever you want. It is a pay-as-you-go model.

Reserved

You need to sign a contract with AWS for 1–3 years. The key thing to note is that AWS offers a discount for a Reserved commitment.

Spot

Let’s imagine you have an application that has flexible start and end times. You define a bid price for whatever you are willing to pay for the server. Let’s imagine you have a data processing application that runs for five hours and the running time is not important. You are able to run at the beginning or end of the month; it is not a problem. You can provision a Spot instance that significantly reduces your cost.

Dedicated

This is useful when your organization has a software...