The EC2 instance purchasing options
AWS offers several purchasing options to the customer and allow customers to choose the best option that fits their workload. Almost every customer goes for a mix of purchasing options, which allows you to save a lot and satisfy the workload requirements.
On-demand
This is the first default option that usually customers start with on AWS. Under this purchasing option, you pay for the compute capacity by the hour with no long-term commitments. You spin up the EC2 instance when you need it and destroy it when you are done. You only get charged for the time that you use the compute capacity. This option is very attractive to support spiky workloads or when you do not have any clarity on the capacity that you need to start with.
Reserved
Under this purchasing option, you commit to AWS that you need a compute capacity for a certain number of years. You can either make a low one-time payment or a lump-sum payment to receive a significant discount on the hourly charge...
