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On-Demand vs Reserved vs Spot pricing

Source: interviewintermediate

WHAT IT TESTS: cost-optimization judgment. OUTLINE: On-Demand for unpredictable bursty work, Reserved or Savings Plans for steady baseline, Spot for interruptible fault-tolerant jobs.

WHAT IT TESTS: whether you match pricing models to workload shape. ANSWER OUTLINE: On-Demand is flexible, pay-per-use, best for unpredictable or short-lived work. Reserved Instances or Savings Plans commit one or three years for a steep discount, ideal for a steady baseline. Spot uses spare capacity at deep discounts but can be reclaimed with little notice, perfect for interruptible, fault-tolerant batch jobs.

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On-Demand vs Reserved vs Spot pricing · Tezvyn