EC2 Pricing Models

Cards (30)

  • 5 Different ways to pay for EC2:
    1. On-demand
    2. Spot
    3. Reserved
    4. Dedicated
    5. AWS Savings Plan
  • On-demand is a pay-as-you-go (PAYG) model, where you consume compute and then you pay.
  • When you launch an EC2 instance it is by default using On-Demand Pricing.
  • On On-demand model you are charged by the second or the hour.
  • Reserved Instance (RI) are designed for applications that have a steady-state, predictable usage, or require reserved capacity.
  • RI is reduced in pricing based on the following:
    1. Term - the longer the term the greater the savings
    2. Class - the less flexible the greater the savings
    3. RI Attributes
    4. Payment Options - the greater upfront you give the greater the savings.
  • RI Attributes (Instance Attributes) are limited based on Class Offerings and can affect the final price of RI instances.
  • The 4 RI Attributes:
    1. Instance Type - this is composed of the instance family and the instance size.
    2. Region - in which region the reserved instance is purchased.
    3. Tenancy - whether your instance runs on shared or single-tenant hardware.
    4. Platform - what operating system was used (Linux or Windows).
  • Regional RI means you purchased for a Region.
  • Zonal RI means you purchase for an Availability zone.
  • RI Limits is a limit to the number of Reserved Instances that you can purchase per month.
  • Per month you can purchase:
    1. 20 Regional Reserved Instances per Region.
    2. 20 Zonal Reserved Instances per AZ.
  • Regional Limits is where you cannot exceed your running On-demand instance limit by purchasing regional reserved instance.
  • Zonal Limits is where you can exceed your running On-demand instance limit by purchasing zonal Reserved Instances.
  • Capacity Reservations is when EC2 instances are backed by different kind of hardware, and so there is a finite amount of servers available within an Availability Zone per instance type or family.
  • Capacity Reservation is a service of EC2 that allows you to request a reserve of EC2 instance type for a specific region and AZ.
  • Standard RI is where the RI attributes can be modified.
  • Convertible RI is where RI attributes cannot be modified instead you perform an exchange.
  • RI Marketplace allows you to sell your unused Standard RI to recoup your RI Spend for RI you do not intend or cannot use.
  • Spot Instances is when AWS has unused compute capacity that they want to maximize the utility of their idle server.
  • Spot Instances provide a discount of 90% compared to on-demand pricing because instances can be terminated anytime when capacity is needed.
  • Dedicated Instances is designed to meet regulatory requirements.
  • Dedicated Host is used when you have string server-bound licensing that won't support multi-tenancy or cloud deployments.
  • Multi-tenant is when multiple customers are running workloads on the same physical hardware and only separated via virtual isolation.
  • Single Tenant is when a single customer has dedicated hardware and is physically separated from other hardwares.
  • Savings Plan is an offer similar to Reserved Instances but simplifies the purchasing process.
  • 3 Types of Savings Plan:
    1. Compute Savings Plan
    2. Ec2 Instance Savings Plan
    3. SageMaker Savings Plan
  • Compute Savings Plan provide the most flexibility and help to reduce your costs by up to 66%
  • EC2 Instance Savings Plan provide the lowest prices, offering savings of up to 72% in exchange for commitment of usage of individual instance families in a region.
  • SageMaker helps you reduce costs by up to 64% and is applied for SageMaker usage.