AWS EC2 Pricing Choices Clarified

July 25, 2018


Puzzled about AWS EC2 case types and AWS EC2 pricing choices? In this post, we describe some of the methods that it is possible to decrease cloud costs, with a useful video at the conclusion that offers figures showing the cost limit for a particular case type.

Case Types and AWS EC2 Pricing Alternatives

AWS offers several different case types, each suited to a specific variety of uses. Within each of those case types there are a number of different pricing alternatives, varying from the most costly ‘On-Demand’ alternatives to Reserved Cases, Transformable Reserved Cases, and Spot Cases, all of which are available at a reduced price.

On-Demand cases are the most flexible and obviously the costliest alternative. As the name indicates, they are bought on demand when they are required. They can be turned on and off at any time needed, gyrated up and run for an hour or so prior to being ended, or they can be run round the clock. They will always be there when you require them. If you switch them off, you will be charged for the disk, however, you will be capable to save a substantial amount as you will not be charged for the CPU or memory.

Users who are capable to pledge to usage over the long term can achieve substantial cost savings by buying Reserved Cases. Users just select their case size and after that dedicate to that case for a year or three years, with alternatives available to pay monthly, every six months in advance, or for the whole period of the agreement beforehand.

The cost savings can be substantial compared to On-Demand instances, even though to attain the cost benefits the cases must be used all through the period of the agreement. Usually, the cost advantages of a 1-year agreement are not realized until at least month 10.

Changeable Reserved Cases allow users to have the cost-saving advantages of Reserved Cases, even though they include greater flexibility because they can be swapped for other (more costly) case types if needed. They are cheaper than On Demand, however, not as cheaper as the inflexible Reserved Cases.

One more substitute is the use of Spot Cases. These are On Demand Cases that are sold off at a substantial reduction. The cost of Spot Cases is variable, as is availability, and there are no assurances of availability. There can be disruptions and the cases can be switched off without notification. There is usually a 15% chance of disruptions, so they are not appropriate for all applications and processing, even though the cost savings are substantial. Spot Cases are usually available at about 65% of the cost of On Demand cases.

In this useful video, Chris Parlette, the Director of Cloud Solutions at ParkMyCloud, describes the AWS case types, the advantages of each case family, and the different prices of using each and areas where savings can be made.