EC2 pricing - CheatSheet
● EC2 has 4 pricing models On-Demand, Spot, Reserved Instances (RI) and Dedicated
● On-Demand (least commitment)
○ low cost and flexible
○ only pay per hour
○ Use case: short-term, spiky, unpredictable workloads, first time apps
○ ideal when your workloads cannot be interrupted
● Reserved Instances up to 75% off (best long-term value)
○ Use case: steady state or predictable usage
○ can resell unused reserved instances (reserved instance marketplace)
○ reduced pricing is based on Term x Class Offering x Payment Option
○ Payment Terms: 1 year or 3 years
○ Payment Options: All Upfront, Partial Upfront, and No Upfront
○ Class Offerings
■ Standard: up to 75% reduced pricing compared to on-demand. Cannot
change RI attributes
■ Convertible: up to 54% reduced pricing compared to on-demand. Allows
you to change RI attributes if greater or equal in value
■ Scheduled: you reserve instances for specific time periods, eg. once a
week for a few hours. Savings vary
● Spot pricing up to 90% off (biggest savings)
○ request spare computing capacity
○ flexible start and end times
○ use case:
■ can handle interruptions (server randomly stopping and starting)
■ for non-critical background jobs
○ instances can be terminated by AWS at anytime
○ if your instance is terminated by AWS, you don't get charged for a partial hour of
usage
○ if you terminate an instance you will still be charged for any hour it ran
● Dedicated Hosting (most expensive)
○ dedicated servers
○ can be on-demand or reserved (up to 70% off)
○ use case
■ when you need a guarantee of isolate hardware (enterprise requirements)
Free Services
● certain services are free themselves, but the resources they setup will cost you
○ IAM - identity access management
○ Amazon VPC
○ services are free, but they can provision AWS services which cost money
■ Auto Scaling
■ CloudFormation
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