Amazon 3 pricing models & Advantages of providing 3 pricing models.
- Kanchan Kandel
- Feb 11, 2017
- 2 min read
Amazon provides a web services (ASW) cloud system with resizable commute capacity in the cloud which help to make the process of commuting easier which is known as EC2 as Elastic Commute Cloud. Amazon under comes with four different types of pricing methods:
On Demand
Spot Instances
Reserved Instances
Explanation of three different pricing Model
On Demand
With On-Demand instances, you pay for compute capacity by the hour with no long-term commitments or upfront payments. You can increase or decrease your compute capacity depending on the demands of your application and only pay the specified hourly rate for the instances you use. On -demand instances allow payment for the services committed before instead of costing for the hardware and its maintenance
Spot Instances:
Amazon another pricing model is Spot Instances, It allows to bid on spare Amazon EC2 computing capacity for up to 90% off the On-Demand price. It is specially recommended for application which were flexible start and end time, for low commute prices and user for urgent computing for large amount of additional capacity.
Reserved Instances
It refers to the pre-booking of the capacity that is supposed to be needed in the future. Reserved Instances provide you with a significant discount (up to 75%) compared to On-Demand instance pricing. In addition, when Reserved Instances are assigned to a specific Availability Zone, they provide a capacity reservation, giving you additional confidence in your ability to launch instances when you need them
Advantages of using Pricing Model
Saves money and time. Less costly for purchasing licenses or infrastructure
Pay what you have used for, Decrease in variable cost of the company
With the use of Pay as you go model help s the company to Reduces the factor of risk
Large amount of discount with the purchase of reserved instances
Predictable management budgets
Helps to increase adoptation
Cost control
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