EC2 - Elastic Compute Cloud Resizable compute capacity Pricing models On demand Low, flexible, no upfront cost Suitable for short term spike Reserved Suitable for steady state Pricing Standard reserved instance - 75% cheaper Convertible reserved instances - 54% cheaper Scheduled reserved instances SPOT For application have low compute usage Upto 90 % cheaper compared to on DEMAND Flexible start and end time You are not charged for the hour if AWS terminates your instance but are charged if you terminate the instance Suitable for fault tolerant or HPC application where downtime on short notice is acceptable. You get 2 minutes notice before an instance is terminated SPOT blocks stops an instance from being terminated