EC2 Reserved instances in AWS

 Amazon EC2 Reserved instances(RI)  provides a significant discount( up to 75%) compared to On-Demand pricing and provide a capacity reservation when used in a specific Availability Zone.

discount when you use an EC2 for a long continue use.

You have the flexibility to change families, OS types, and tenancies while benefitting from RI pricing when you use convertible reserve instance (up to 54% discount)

Scheduled RI: reserve  during specific launch periods. For example if you are able to predit demand during the day this is a great option.

Summary: you know you'll need an EC2 instance for a year you should consider using reserved instances.

 

Payment option: You can choose between three payment options:                                                             
1. All upfront:  You pay for the entire Reserved Instance term (one or three years) with one upfront payment and get the best effective hourly price when compared to On-Demand.                                                                                                

2. partial upfront: you pay little bit and rest is installments.                                                               

3. No Upfront: all monthly installments which makes little expensive.                                          

you choose the partial or No Upfront payment option, the remaining balance will be due in monthly increments over the term.

Hands on:                                                                                                                                                                         

Step1: create an EC2 instance in a standard on -demand process.  (ex: suppose T2 instance here)                                                            

 Step2: Purchase a reserved instance. that matches the EC2 instance create in the step1. (T2 instance here too).

                                                                            

*Automatically the billing for the T2 type instance will goes to reserved instance.     

step3: in case of additional changes in the step1. suppose from T2 type instance to C4 type instance.

Step 4: launch the C4 type instance for reserve instance.                                                                         

*Automatically the billing for the C4 type instance will goes to reserved instance.     

Navigate to instance --> Reserved instances as shown below.                                                                                       

Click on purchase reserve instances.                                                                                                         

Choose your platform                                                                                                                                    

Tenancy :                                                                                                                                               

Default option:    for sharing with other people. when you are not using the reserved instance host.

Dedicated: only for you.                                                                                                                       

Offering Class : As per above table in this post.                                                                                            

Provide instance type and duration for the reserved instance info.                                                                             

Choose your payment option.                                                                                                                                   

Click on search.

Add the desired quantity, suppose you need same C4 type instance - 4 no. you can provide you entry as 4 here.

Click on Add to cart.

Finally click on view cart and pay the price.