EC2 Pricing Policies and Instance Types

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On-Demand #

Pay a price measured by computing power per hour or second, depending on the instance you run.

No commitment required
When long-term demand forecasting is difficult or you want to use EC2 flexibly
When you want to try it out

Stop Instance #

A method of purchasing leftover instances in the market at a low price through an auction format.

Up to about 90% cheaper
However, you don't know when you'll have to give it back.
When start/stop is flexible or additional computing power is needed.

Reserved Instances (RI) #

A method of committing to use for a fixed period in advance (1 to 3 years).

Up to 75% cheaper (compared to On-Demand)
When demand forecasting is certain
Users who can commit for a certain period to reduce total costs.

Dedicated Hosts #

A method of leasing actual physical servers.

Licensing issues (e.g., Windows Server)
When required by regulations

Instance Types #