How do on-demand instances compare to reserved instances?

How do on-demand instances compare to reserved instances?

On-demand instances allow you to pay for compute capacity by the hour or second, with no long-term commitments. Reserved instances, on the other hand, require you to commit to using a specific instance type for a one or three-year term, offering significant savings.

What are the cost differences between the two?

On-demand instances are typically more expensive per hour compared to reserved instances. Reserved instances can save you up to 75% over on-demand pricing, depending on the commitment length and payment options.

Are there any flexibility benefits with on-demand instances?

Yes, on-demand instances provide greater flexibility as you can start and stop them as needed without any long-term commitment, making them ideal for unpredictable workloads.

Which option is better for startups?

For startups, on-demand instances might be better initially due to their flexibility. However, if you have predictable workloads, reserved instances can lead to significant cost savings in the long run.