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What are reserved instances and how do they work?

An example of an AI chatbot conversation about reserved instances usage in cloud computing.

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You

What are reserved instances and how do they work?

MagicBuddy
MagicBuddy

Reserved instances are a pricing model in cloud computing where you commit to using a specific instance type for a set period, usually one or three years, in exchange for a lower hourly rate.

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You

What are the benefits of using reserved instances?

MagicBuddy
MagicBuddy

The main benefits include cost savings, predictable pricing, and the ability to reserve capacity for your applications.

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You

Can I change my reserved instance type later?

MagicBuddy
MagicBuddy

Yes, many cloud providers allow you to modify your reserved instances, but there may be limitations and fees involved.

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You

How do I calculate the savings from reserved instances?

MagicBuddy
MagicBuddy

You can calculate savings by comparing the cost of on-demand instances versus the cost of reserved instances over the commitment period.

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