AWS EC2 On-demand Pricing: How It Works and How To Get EC2 Best Deal


AWS EC2 On-demand Pricing: How It Works and How To Get the Best Deal

AWS EC2 On-demand Pricing: How It Works and How To Get EC2 Best Deal

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What is AWS EC2 On-demand Pricing?

The normal prices of EC2 servers are:

1: Standard Instance

 2: Reserved Instance

 3: On Demand Instance

 4: Spot Instance

 What Is the Difference Between the Standard Instance and Reserved Instance?

 A standard instance is the same as an autoscaling group that contains a single server and is available 24/7 for 99.99 % of the days of the year. The difference between the Standard Instance and Reserved Instance is that they are available only for a single month.

 As AWS describes: When reserving an instance, you choose a starting date for your instance. You choose the number of months you need your instance to be available for (the periods are called calendars).

 When your instance is reserved, we use a mathematical formula to determine when it will be ready to use.

How AWS EC2 On-demand Pricing Works

When Amazon launched its EC2 cloud computing platform in 2006, it faced a major problem. Pricing for its EC2 virtual machine instances had been determined with a "quota-based" system that only supported symmetric multi-node contracts.

 This allowed users to choose to run EC2 instances based on what they could afford, but not intelligently.

 Subsequent updates enabled customers to save money by running more instances on the same machine, but these savings were ultimately offset by the increased overhead associated with spinning up additional EC2 instances to meet demand.

 In response, Amazon introduced its "EC2 On-Demand" offering. This allowed customers to choose to pay a flat-rate for access to as many AWS cloud resources as they could accommodate in a month.

How to get the best deal on AWS EC2 On-demand Pricing

Before we dive into the nitty-gritty details, let's quickly explain how EC2 On-demand Pricing works.

 First, let's talk about the three options: 1. Simple Reserved Instances for Simple Reserved Storage Reserved Instances are the simplest way to provision and manage a static, virtual machine (VM).

 You will be provided with a Reserved Instance (either an on-demand or a Capacity Provisioned Instance), and you will pay for the hours in advance.

 For example, an 8-hour reservation on June 18th, 2017 costs you $0.05 and then $0.005 per hour for the next 4 hours (from 6:00am-9:00am) to $0.012 per hour from 9:00am-11:00am (note that the billing period begins at 6am). This configuration provides a single instance that is relatively stable. 2.


AWS EC2 is a good choice for EC2 and a better option to start with for people who are just starting to get into the AWS ecosystem.

 I was initially scared of the cost for a first-time user as it was under a dollar a month and for a second user it was about 5 times more. Now, this post talks about how you can easily get the most out of it without spending a lot. Hopefully, it can show you the best of the two.

 At the end of the post, there are some useful links to get you started and to keep you updated about the status of AWS. If you have any questions or want to comment, please let me know.

 Please take a moment to read through what we covered. There is a lot of good stuff in here and if you have any questions, please feel free to leave them in the comments.

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