Of these the most popular three pricing tiers are On-demand, reserved instances and spot instances.
On-demand is the most flexible, pay-as-you-go pricing option. You pay for compute capacity on an hourly or per second basis and only pay for the EC2 instances you actually use. The cost per hour or per second depends on the instance type and the region the instance is located. Because of this flexibility you will pay more than you would for other pricing options.
Reserved instances are best for companies who commit to longer term contracts and can predict consumption and require reserved capacity. They provide a significantly higher discount than on-demand pricing which is charged per hour or per month and the varies based on instance type and region.
With spot instances the price you pay depends on the instance type and your region as well as depending on supply and demand for Spot Instance capacity. You are essentially bidding on spare computing capacity and pricing fluctuates every 5 minutes depending on what is currently available. The advantage is there is no upfront commitment but is less predictable.
As certified AWS experts, igroup will work with you to understand the benefits of each option so that you can develop and deploy applications without the need to invest in and manage expensive hardware infrastructure.