EC2‘s Reserved Instance model provides you with two benefits: capacity assurance and a
lower effective hourly rate in exchange for an upfront payment. After combining customer
feedback with an analysis of purchasing patterns that goes back to when we
Reserved Instances in 2009, we have decided to simplify the model and are introducing an
important set of changes today.
The New Reserved Instance Model
There is now a single type of Reserved Instance and it has three payment options. All
of the options continue to provide capacity assurance and discounts that are typically
around 63% for a three year term when compared to On-Demand prices.
There are three payment options that so that you can decide how you would like to
pay for your Reserved Instance throughout the term (in descending order
of effective discount):
All Upfront –
You pay for the entire Reserved Instance term (one or three years)
with one upfront payment and get the best effective hourly price
when compared to On-Demand.
Partial Upfront –
You pay for a portion of the Reserved Instance upfront, and then
pay for the remainder over the course of the one or three year
term. This option balances the RI payments between upfront
No Upfront – You pay nothing upfront
but commit to pay for the Reserved Instance over the
course of the Reserved Instance term, with discounts (typically about 30%) when compared
to On-Demand. This option is offered with a one year term.