Amazon EC2 provides various purchasing options to optimize your costs. One has to choose the right purchasing option based on the workload.
Knowing these can help you recommend a right cost optimisation strategy based on your workload. Also this can be a valuable input while migrating to AWS Cloud.
On-Demand Instances – Pay, by the second, for the EC2 instances that are launched on-demand.
Savings Plans – Reduce EC2 instance costs by making a commitment to a consistent amount of usage, in USD per hour, for a term of 1 or 3 years.
Reserved Instances – Reduce EC2 instance costs by making a commitment to a consistent instance configuration, including instance type and Region, for a term of 1 or 3 years.
Spot Instances – Request/bid for unused EC2 instances, which can reduce EC2 costs significantly.
Dedicated Hosts – Pay for a physical host that is fully dedicated to running your instances, and bring your existing per-socket, per-core, or per-VM software licenses to reduce costs.
Dedicated Instances – Pay, by the hour, for instances that run on single-tenant hardware.
Capacity Reservations – Reserve capacity for EC2 instances in a specific Availability Zone for any duration.
For your convenience this is also available at Amazon EC2 Purchasing Options
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