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ec2-pricing.md

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Reserved Instances (RI)

  • Designed for applications that have a steady state, predictable usage or require reserved capacity.
  • Reduced Pricing is based on Term x Class Offering x Payment Option

    • Term

      • {The longer the term the greater the savings}
      • Commit to 1 year or 3 Year contract
      • Reserved Instances do not renew automatically
      • When it is expired it will use on-demand with no interruption to service

    • Class

      • {The less flexible the greater savings}
      • Standard
        • Up to 75% reduced pricing compared to on-demand
        • Can modify RI attributes
      • Convertible
        • Up to 54% reduced pricing compared to on-demand
        • can exchange RI based on RI attributes if greater or equal in value
      • Scheduled
        • AWS no longer offers Scheduled RI

    • Payment Options

      • {The greater upfront the greater savings}
      • All upfront : full payment at the start
      • Partial Upfront : A portion of the cost must be paid and remaining hours billed at a discounted hourly rate
      • No Upfront : billed at a discounted hourly rate for every hour within the term,regardless of whether the Reserved Instance is being used
    • RIs can be shared between multiple accounts within AWS organization
    • Unused RIs can be sold in the Reserved Instance Marketplace

Reserved Instance (RI) Attributes

  • RI attributes
    • are limited based on class offering and can affect the final price of an RI instance
    • 4 RI attributes:
      • Instance Type:
        • eg. m4.Large. This is composed of the instance family (for example , m4) and the instance size (for example large)
      • Region:
        • The region in which the Reserved Instance is purchased
      • Tenancy:
        • Whether your instance runs on shared(default) or single-tenant (dedicated) hardware
      • Platform:
        • the operating system eg. Windows or Linux/Unix

Regional and Zonal RI

Regional RI : purchase for a region Zonal RI : purchase for an Availability Zone
does not reserve capacity reserves capacity in the specified Availability Zone
RI discount applies to instance usage in any AZ in the Region RI discount applies to instance in the selected AZ (No AZ Flexibility)
Ri discount applied to instance usage within the instance family, regardless of size. Only supported n Amazon Linux, Unix Reserved Instances with default tenancy No instance size flexibility
Ri discounts applies to instance usage for the specified instance type and size only
You can queue purchases for regional RI You can't queue purchases for Zonal RI

RI Limits

  • There is a limit to the number of Reserved Instances that you can purchase per month
    • Per month you can purchase
      • 20 Regional Reserved Instances per Region
      • 20 Zonal Reserved Instances per AZ
Regional Limits Zonal Limits
You cannot exceed your running On-Demand Instance limit by purchasing regional Reserved Instances. The default On-Demand Instance limit is 20. You can exceed your running On-Demand Instance limit by purchasing zonal Reserved Instances
Before purchasing RI ensure On-Demand limit is equal to or greater than your RI you intend to purchase If you already have 20 running On-Demand Instances, and you purchase 20 Zonal Reserved Instances, you can launch a further 20 On-Demand Instances that match the specifications of your zonal Reserved Instances

Capacity Reservations

  • EC2 instances are backed by different kind of hardware, and so there is a finite amount of servers available within an Availability Zone per instance type or family
  • You go to launch a specific type of EC2 instance but AWS has ran out of that server
  • Capacity reservation is a service of EC2 that allows you to request a reserve of EC2 instance type for a specific Region and AZ

Standard vs Convertible RI

Standard RI Convertible RI
RI attributes can be modified
- Change the AZ within same Region
- Change the scope of the Zonal RI to Regional RI or visa versa
- Change the instance size (Linux/Unix only, default tenancy)
- Change network from Ec2-Classic to VPC and visa versa		 RI attributes can't be modified (you perform an exchange)
Can't be exchanged Can be exchanged during the term for another Convertible RI with new RI attributes, including:
- Instance type
- Instance Family
- Platform
- Scope
- Tenancy
Can be bought or sold in the RI Marketplace Can't be bought or Sold in the RI Marketplace

RI Marketplace

  • EC2 Reserved Instance Marketplace allows you to sell your unused Standard RI to recoup your RI spend for RI you do not intend or cannot use

  • Reserved Instances can be sold after they have been active for at least 30 days and once AWS has received the upfront payment (if applicable)

  • You must have a US bank account to sell Reserved Instances on the Reserved Instance Marketplace

  • There must be at least one month remaining in the term of the Reserved Instance you are listing

  • You will retain the pricing and capacity benefit of your reservation until it's sold and the transaction is complete

  • Your company name ( and address upon request) will be shared with the buyer for tax purposes.

  • A seller can set only the upfront price for a Reserved Instance. The usage price and other configuration (eg. instance type, availability zone, platform) will remain the same as when the Reserved Instance was initially purchased

  • The term length will be rounded down to the nearest month. For example, a reservation with 9 months and 15 days remaining will appear as 9 months on the Reserved Instance Marketplace.

  • You can sell upto $20,000 in Reserved Instances per year. If you need to sell more Reserved Instances

  • Reserved Instances in the GovCloud region cannot be sold on the Reserved Instance Marketplace