On-Demand vs Reserved vs Spot pricing models
WHAT IT TESTS: cloud cost fluency. OUTLINE: On-Demand is flexible but priciest, Reserved trades a 1-3 year commitment for discounts, Spot is cheapest but interruptible. RED FLAG: putting stateful or latency-critical work on Spot.
WHAT IT TESTS: whether you can match compute purchasing options to workload shape. ANSWER OUTLINE: On-Demand has no commitment and highest per-hour cost, ideal for unpredictable or short bursts; Reserved Instances and Committed Use Discounts give large savings for a 1-3 year capacity or spend commitment, suiting steady baselines; Spot/Preemptible offers the deepest discount on spare capacity but can be reclaimed with little notice.
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- #cloud
- #cost-optimization
- #compute
- #pricing
- #spot-instances
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