AWS Classroom Series – 08/Oct/2021

Pricing for Amazon EC2

• On-demand instances:

  • This is most popular & you pay just for usage on a flat hourly or per-second billing
  • This is the costlier option
  • In this option you will be charged only when your ec2 instance is running

• Reserved Instances:

  • A reserved instance provides upto 75% discount compared to on-demand instances
  • Here we need to give commitment to AWS for using ec2 instance for one year or three years
  • We can pay the bills for usage
    • Complete upfront (Most discount)
    • Partial Upfront
    • No-Upfront
  • Reserved instances are charged whether your ec2 instance is running or not
  • The reserved instances are divided into two sub categories
    • Standard Reserved Instance
    • Convertable Reserved Instance:
      • This provides better flexibility if your compute requirements change over the given perio of time.
      • A Convertible reserved instance provides you the ability and flexibiluty to exchange the instance from one class of family to another class if your compung ing needs change
  • Exchanging reserved instances Refer Here
  • Sell the reserved instance Refer Here
  • Buying reserved instances from other users Refer Here

• Spot Instances:

  • To make use of the excess compute capacity AWS gives you ability to bid for unused capacity by creating ec2 instance where you can upto 90% discount. This is called spot pricing
  • Spot price fluctuates based on supply and demand. If some one overbids you, then you willloose the instance, on very short notice
  • We can use these spot instances to add compute and memory for the clustered/distributed applications
    • Anything containerized
    • Big Data frameworks
    • Machine learning

• Note: Refer Here for the AWS Pricing Calculator

• Exercise: In your organization, you are deploying an application.

  • Application has
    • two webservers
    • four middle ware servers
    • two databases
  • All of them are running in Ec2 instances
    • Web servers need more CPU than memory, We would need atleast 8 Cores
    • Two middle ware servers require more Memory than CPU (Memory => 16 GB)
    • Two middle ware servers require more CPU than Memory (16 Cores)
    • Database servers should be storage optimized (4 vCPU 16 GB of RAM)
  • Try to create a billing estimate with latest instance types for the above usecase.
  • Note: You can skip storage costs for now.