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Pricing Models for Amazon EC2
Amazon Elastic Compute Cloud (Amazon EC2) is
a web service that provides secure, resizable
compute capacity in the cloud.You can select
from a variety of operating systems and
resource configurations like memory, CPU,
storage that is required for your application.
Amazon EC2 enables you to obtain and
configure capacity within minutes. You can use
one or hundreds or even thousands of server
instances simultaneously. Some of the
considerations for estimating Amazon EC2 cost
are Operating systems, Clock hours of server
time, Pricing Model, Instance type and Number
of instances.
Users can pay only for what they are using
according to per-second billing. so, This EC2
per-second billing will helps the users to
remove the cost of the unused minutes and also
seconds from the user’s bill.
Pricing models for Amazon EC2:
There are four pricing models for Amazon EC2
instances: On-Demand Instances, Reserved
Instances, Spot Instances, and Dedicated Hosts.
1. On-Demand Instances:
In this model, based on the instances you
choose, you pay for compute capacity per hour
or per second (only for Linux Instances) and
no upfront payments are needed. You can
increase or decrease your compute capacity to
meet the demands of your application and
only pay for the instance you use. This model
is suitable for developing/testing application
with short-term or unpredictable workloads.
On-Demand Instances is recommended for
users who prefer low cost and flexible EC2
Instances without upfront payments or long-
term commitments. Depending on the
demands of your application Users can also
increase or decrease their compute capacity.
2. Spot Instances:
Amazon EC2 Spot Instances is unused EC2
capacity in the AWS cloud. Spot Instances are
available at up to a 90% discount compared to
On-Demand prices. The Spot price of Amazon
EC2 spot Instances fluctuates periodically
based on supply and demand. It supports both
per hour and per second (only for Linux
Instances) billing schemes. Applications that
have flexible start and end times and users
with urgent computing needs for large scale
dynamic workload can choose Amazon EC2
spot Instances. Spot Instances is very best for
the applications that are very feasible and
having very low compute prices and also for
the applications which have flexible start and
end times.
3. Reserved Instances:
Amazon EC2 Reserved Instances provide you
with a discount up to 75% compared to On-
Demand Instance pricing. It also provides
capacity reservation when used in specific
Availability Zone. For applications that have
predictable workload, Reserved Instances can
provide su"cient savings compared to On-
Demand Instances. The predictability of usage
ensures compute capacity is available when
needed. Customers can commit to using EC2
over a 1- or 3-year term to reduce their total
computing costs. It has very flexible pricing
model which o#ers low prices on EC2.
4. Dedicated Hosts:
A Dedicated Host is a physical EC2 server
dedicated for your use. Dedicated Hosts can
help you reduce costs by allowing you to use
your existing server-bound software licenses
like Windows server, SQL server etc. and also
helps you to meet the compliance
requirements .Customers who choose
Dedicated Hosts have to pay the On-Demand
price for every hour the host is active in the
account. It supports only per-hour billing and
does not support per-second billing scheme.
The Dedicated Host is something physical EC2
server which is dedicated for the use of user.
Per-second billing scheme:
Today, many customers use Amazon EC2 to do a
lot of work in a short time, sometimes minutes
or even seconds. In 2017, AWS announced per-
second billing for usage of Linux instances
across On-Demand, Reserved, and Spot
Instances. The minimum unit of time that will
be charged is a minute (60 seconds ), but after
your first minute of time, it is charged for
seconds. However if you start then stop an
instance in 30 seconds, you will be charged the
60 seconds not 30.
This Per-second billing is available for all the
instances launched in:
On-Demand Instances
Reserved Instances
Spot instances
All regions
All Availability Zones
Amazon Linux
Windows
Ubuntu
Article Tags : Amazon Web Services Misc
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