EC2 Pricing & Flexibility

Cost Optimization and Scaling Strategies

Pricing Models

On-Demand

Pay per hour/second, no commitment

Reserved Instances

1-3 year commitment, up to 75% savings

Spot Instances

Bid for unused capacity, up to 90% savings

Dedicated Hosts

Physical server dedicated to your use

Placement Groups

Cluster

Low latency, high network performance

Spread

Instances on distinct hardware

Partition

Groups of instances in separate partitions

Auto Scaling

1

Launch Template

Define instance configuration

2

Auto Scaling Group

Set min, max, desired capacity

3

Scaling Policies

Define when to scale in/out

4

Health Checks

Monitor and replace unhealthy instances

Cost Optimization Tips

  • • Use Reserved Instances for predictable workloads
  • • Implement Spot Instances for fault-tolerant applications
  • • Right-size instances based on actual usage
  • • Use Auto Scaling to match capacity with demand
  • • Consider Savings Plans for flexible commitment
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