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Amazon offers Reserved Instances
Submitted by altj on Thu, 03/12/2009 - 10:04
Amazon announced today the availability of Reserved Instances. Basically, you pay a one-time fee and get a significant discount on the hourly rate for that instance.
Their rates are available here.
After doing some calculations on it, I figured out the break even point between the old "On-Demand Instances" and the new "Reserved Instances."
For the current 1 year term, the break-even point is 193 days. For the 3 year term, the break even point is 298 days. So basically, if you're going to be running a particular instance for much more than a year, you should probably sign up for the 3 year term.
Here's a brief comparison of the year by year costs for a small instance. I've only listed the small instance type since the costs for the other instance types are all proportional (e.g. large is 4x and xlarge is 8x.)
| 1st year costs | 2nd year costs | 3rd year costs | 3 year Total | |
| On Demand | $876.00 | $876.00 | $876.00 | $2,628.00 |
| 1 year term | $587.80 | $587.80 | $587.80 | $1,763.40 |
| 3 year term | $762.80 | $262.80 | $262.80 | $1,288.40 |
(I'm not sure why the spacing is so funky on this post with a table in it.)
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