EC2 Cost Optimization

• On-Demand - Pay by the hour.

  • Pay only for the seconds that the instance is on running state
  • Recommended to Short term irregular workflows that cannot be interrupted

• Savings Plans - Commit to a certain usage for a discount

  • Compute Savings Plan: 66% discount to any ec2 instance
  • Ec2 Instance Savings Plan: 72% discount on a instance family in a region

• Reserved instances - 1 to 3 year commitment including instance type and region

  • Applied to On Demand Instances
  • Can be convertible to different instance prices

• Spot Instances -> bid on unused machines and pay lower prices!

• Dedicated Hosts - Get a physical host fully dedicated

  • See How does EC2 work on bare metal

• Dedicated Instances - pay per hour on instances that run on single-tenant hardware

• Capacity Reservation - Reserve a capacity for Ec2 in a specific AZ for any duration

  • Needs to provide: AZ, Number of Instances, EC2 type, tenancy, platform/OS
  • Automatically used by running instances that match the attributes

Links: EC2