Reserved Instances

Definition

Reserved Instances are cloud computing capacity purchased in advance at discounted rates, requiring a commitment period of 1-3 years for cost savings.

Use Cases

Provider Equivalents

Frequently Asked Questions

What's the difference between Reserved Instances and Savings Plans?
Reserved Instances (RIs) are a commitment tied to specific instance attributes (like instance family, region, and sometimes availability zone) and can provide discounts when you run matching instances. Savings Plans are a commitment to a dollar-per-hour spend; they generally apply more flexibly across instance types (and, depending on plan type, across services like AWS Fargate and Lambda). In practice: RIs are more specific; Savings Plans are usually more flexible.
When should I use Reserved Instances?
Use Reserved Instances when you have workloads that run consistently (for example, production databases, core APIs, or always-on application servers) and you expect that usage to continue for 1 or 3 years. A common approach is to reserve only the baseline (minimum) capacity you reliably use, and keep burst or seasonal capacity on On-Demand or Spot.
How much does Reserved Instances cost?
You pay a discounted rate compared to On-Demand in exchange for a 1-year or 3-year commitment. The effective price depends on the instance type, region (and sometimes availability zone), term length, and payment option (no upfront, partial upfront, or all upfront). Longer terms and more upfront payment typically increase the discount, but reduce flexibility.

Category: cloud

Difficulty: intermediate

Related Terms

See Also