0016.AWS EC2 Instance Purchasing Option

 AWS EC2 Instance Purchasing Option

1.       On-Demand Instance – On Demand instance is used for short workload, predictable pricing, pay by second

2.  Reserved ( 1 & 3 years)

a.       Reserved Instances – Used for long workloads

b.       Convertible Reserved Instances – Used for long workload with flexible instances

3.  Saving Plan        – Used for short workloads, cheap, can lose instances (less reliable)

4.  Dedicated Hosts – Used for book an entire physical server, control instance placement

5.  Dedicated Instance – No other customer will share your hardware.

6.  Capacity Reservations – Reserve capacity in a specific AZ for any duration.

 

EC2 on Demand:

ü   Pay for as per use:

o   Linus or windows – billing per second, after the first minute

o   All other operating systems – billing per hours

ü   Has a highest cost but no upfront payment.

ü   No longterm commitment

ü   Recommended for short term and un-interrupted workloads, where you can’t predict how the application will behave.

 

EC2 Reserved Instance:

ü   Up to 72% discount compared to On-demand

ü   You reserve a specific instance attribute (Instance Type, Region, Tenancy, OS)

ü   Reservation Period – 1 Year (+ discount) or 3 years (+++ discount)

ü   Payment Options – No upfront (+), partial upfront (++), All upfront (+++)

ü   Reserved Instance’s Scope – Regional or Zonal (reserve capacity in an AZ)

ü  Recommended for study-state uses application (think database)

ü  You can buy and sell reserved instance in Marketplace

ü  Convertible Reserved Instance

o   Can change the EC2 instance type, instance family, OS, Scope and tenancy

 

EC2 Saving Plan:

ü  Get a discount based on long-term usage (up to 72% - same as RIs)

ü  Commit to a certain type of usage ($ 10/hours for 1 or 3 years)

ü  Usage beyond EC2 saving plan is billed at the On-Demand price

ü  Locked to a specific instance family & AWS region (e.g, M5 in us-east-I)

ü  Flexible across:

o   Instance Size (e.g. m5.xlarge, m5.2xlarge)

o   OS (eg, Linux, Windows)

o   Tenancy (Host, Dedicated, Default)

 

EC2 Spot Instance:

ü  Can get a discount of up to 90% compared to On-demand.

ü  Instance that you can “lose” at any point of time if your max price is less than the current spot price.

ü  The MOST cost-efficient instance in AWS

ü  Usedul for workloads that are resilient to failure

o    Batch jobs

o    Data Analyis

o    Image Processing

o    Any distributed workloads

o    Workloads with a flexible start and end time

ü   Not suitable for critical jobs or databases

EC2 Dedicated Hosts:

ü   A physical server with EC2 instance capacity fully dedicated to your use.

ü  Allow you address compliance requirements and use your existing server-bound software licenses (per-socket, per-core, pe-VM software licenses)

ü  Purchasing Options:

o   On-DEMAND – PAY PER SECOND FOR ACTIVE Dedicated Host

o   Reserved – 1 or 3 years (No upfront, Partial Upfront, All Upfront)

ü  The most expensive options

ü  Useful for software that have complicated licensing model (BYOL – Bring Your Own License)

ü  Or for companies that have strong regulatory or compliance needs

 

EC2 Capacity Reservation:

ü Reserve on-Demand instances capacity in a specific AZ for any duration.

ü You always have access to EC2 capacity when you need it

ü No time commitment (create/cancel anytime), no billing discounts

ü Combine with Regional Reserved Instances and Saving Plans to benefit from billing discounts

ü You’re charged at On-Demand rate whether you run instances or not

ü Suitable for short term, uninterrupted that needs to be a specific workload.