<h3 id="heading-on-demand-instances">On-Demand Instances</h3>
<p>You pay for computing capacity per hour/second, depending on which instances you run.</p>
<p><strong>Use case:</strong></p>
<ul>
<li><p>Users who don't need upfront payment or long-term commitments</p>
</li>
<li><p>Applications that cannot be interrupted</p>
</li>
</ul>
<h3 id="heading-spot-instances">Spot Instances</h3>
<p>Spot Instances you request spare Amazon EC2 computing capacity for up to 90% off.</p>
<p><strong>Use case:</strong></p>
<ul>
<li><p>Applications that have flexible start &amp; end time</p>
</li>
<li><p>Workloads that are fault-tolerant or stateless</p>
</li>
</ul>
<h3 id="heading-savings-plans">Savings plans</h3>
<p>Offers low usage prices for a 1 or 3-year term commitment to a consistent amount of usage. Provides up to 72% savings on AWS compute usage. Savings offers discounts across all families of EC2. Payment needs to be done upfront or every month</p>
<p><strong>Use case:</strong></p>
<ul>
<li><p>Workloads with a consistent &amp; stead-state usage</p>
</li>
<li><p>Customers who can make a monetary commitment for a 1 or 3-year term</p>
</li>
</ul>
<h3 id="heading-reserved-instances">Reserved Instances</h3>
<p>Offers low usage prices for a 1 or 3-year term commitment for a specific instance. Savings are offered only for an instance that is committed to. Payment can be done on All Upfront, Partial Upfront or No Upfront basis.</p>
<p><strong>Use case:</strong></p>
<ul>
<li><p>Customers who know they do not need to change instance types</p>
</li>
<li><p>Customers who can make a monetary commitment for longer duration</p>
</li>
</ul>
<h3 id="heading-dedicated-host">Dedicated Host</h3>
<p>It is a physical Amazon EC2 server.</p>
<p><strong>Use case:</strong></p>
<ul>
<li>If a customer has an existing server-bound software license, he can use purchase a dedicated host on demand.</li>
</ul>


### On-Demand Instances

You pay for computing capacity per hour/second, depending on which instances you run.

**Use case:**

* Users who don't need upfront payment or long-term commitments
    
* Applications that cannot be interrupted
    

### Spot Instances

Spot Instances you request spare Amazon EC2 computing capacity for up to 90% off.

**Use case:**

* Applications that have flexible start & end time
    
* Workloads that are fault-tolerant or stateless
    

### Savings plans

Offers low usage prices for a 1 or 3-year term commitment to a consistent amount of usage. Provides up to 72% savings on AWS compute usage. Savings offers discounts across all families of EC2. Payment needs to be done upfront or every month

**Use case:**

* Workloads with a consistent & stead-state usage
    
* Customers who can make a monetary commitment for a 1 or 3-year term
    

### Reserved Instances

Offers low usage prices for a 1 or 3-year term commitment for a specific instance. Savings are offered only for an instance that is committed to. Payment can be done on All Upfront, Partial Upfront or No Upfront basis.

**Use case:**

* Customers who know they do not need to change instance types
    
* Customers who can make a monetary commitment for longer duration
    

### Dedicated Host

It is a physical Amazon EC2 server.

**Use case:**

* If a customer has an existing server-bound software license, he can use purchase a dedicated host on demand.

EC2 Pricing

On-Demand Instances

Spot Instances

Savings plans

Reserved Instances

Dedicated Host