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Simplifying the EC2 Reserved Instance Model

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
first launched
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
    and hourly.
  • 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.

Learning More
If you have any questions about these changes, please take a look at the updated
Reserved Instance FAQ.
As always, AWS Support is also ready, willing, and able to assist!


Feed Source: Amazon Web Services Blog
Article Source: Simplifying the EC2 Reserved Instance Model

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