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EC2 offers multiple pricing models, each suited to different usage patterns and commitment levels. Choosing the right model — or combining models — can reduce your compute costs by 60-90% compared to On-Demand pricing. This lesson covers all the major options.
| Model | Commitment | Discount vs On-Demand | Best For |
|---|---|---|---|
| On-Demand | None | 0% (baseline) | Unpredictable workloads, short-term, development |
| Reserved Instances | 1 or 3 years | Up to 72% | Steady-state, predictable workloads |
| Savings Plans | 1 or 3 years | Up to 72% | Flexible commitment across instance types |
| Spot Instances | None | Up to 90% | Fault-tolerant, flexible workloads |
| Dedicated Hosts | On-Demand or Reserved | Varies | Licensing, compliance, regulatory requirements |
| Dedicated Instances | On-Demand pricing + fee | Small premium | Hardware isolation without host management |
| Capacity Reservations | None | 0% (On-Demand rates) | Guaranteed capacity in a specific AZ |
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