What are EC2 Reserved Instances and how do they differ from On-Demand Instances?

AWS Cloud Practitioner Medium

AWS Cloud Practitioner — Medium

What are EC2 Reserved Instances and how do they differ from On-Demand Instances?

Key points

  • Reserved Instances require a commitment for a discount
  • On-Demand Instances are billed at full price with no commitment
  • Reserved Instances are cost-effective for long-term usage
  • On-Demand Instances are flexible but more expensive
  • Understanding the pricing models is crucial for cost optimization

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