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Unlocking the Secrets of AWS EC2 Pricing
A Developer's journey to understanding EC2 Pricing
3 min read
As a software developer, I understand the importance of optimizing resources and saving money. One of the most crucial resources to consider is computing power for your workloads. That's why I have come to rely on the flexibility of the cloud and specifically, AWS Elastic Compute Cloud (EC2), because really who buys physical servers nowadays?
What is EC2?
EC2 is a web service that provides scalable and flexible computing capacity in the cloud. It allows you to run virtual machines (VMs), also known as instances, which can be customized to your specific needs. But, with so many options available, it can be overwhelming to know which one to choose.
In this article, I'll share my personal experience with the different pricing options for EC2 and their use cases, so you can make an informed decision for your next project.
The first option is On-Demand instances. This option allows you to pay for computing capacity by the hour or the second with no long-term commitments. I've found this to be the most flexible pricing option, and it's perfect for projects that need the ability to scale up or down quickly, without any up-front costs. I've used On-Demand instances for web and mobile applications, development and test environments. This is also a good option if you want to probe your traffic patterns before committing to a Reserved instance.
The second option is Reserved instances. This option allows you to reserve capacity for a one or three-year term and can provide significant savings compared to On-Demand pricing. There are two types of Reserved Instances: Standard Reserved instances and Convertible Reserved instances. I've used Reserved Instances for applications with a steady state or predictable usage, applications that require reserved capacities such as CMS for a company's internal website (i.e. WordPress), and enterprise applications like CRM and ERP systems with predictable traffic patterns.
The third option is Spot instances. This option allows you to bid on unused Amazon EC2 instances and run them at a lower cost than On-Demand instances. The hourly price for a Spot Instance is called a Spot price. This price fluctuates with supply and demand and you can set a maximum price that you're willing to pay for the instance. The catch is that Spot instances can be terminated when Amazon EC2 needs the capacity back, so they are best suited for flexible, fault-tolerant workloads. I've used Spot instances for big data processing jobs that can be interrupted if the Spot price changes such as data analysis and machine learning training, but these are also very popular for use in containerized workloads, CI/CD, and high-performance computing (HPC).
The fourth option is Dedicated Hosts. This option allows you to physically separate your instances from other customers' instances on the same hardware. This can be useful for compliance and regulatory requirements, and can also provide discounts on software licenses. Some of the use cases for Dedicated Hosts include applications that require a specific hardware configuration, or that require a high degree of isolation.
In conclusion, AWS Elastic Compute Cloud (EC2) provides several pricing options to suit different use cases and requirements, it's important to evaluate your needs and budget before making a decision. On-Demand instances, Reserved instances, Spot instances, and Dedicated Hosts all have their pros and cons, and the right choice will depend on the specific needs of your project. By understanding the different options available and their use cases, you can make the best decision for your next project and save money in the process. As someone who has used EC2 for multiple projects, I can confidently say that it is a powerful and cost-effective tool for any software developer.