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In this video, Jeremy Cioara covers Amazon Web Services (AWS) Elastic Computing Pricing. It has three different pricing models: On-Demand, Reserved, and Spot. Each of these has various pros and cons, and Jeremy will walk you through each of these so you can decide which might be best for you.
Amazon’s Elastic Computing service offers a tremendous range of possibilities at an affordable price, but you need to know which pricing model will be most cost-effective for your application. On-Demand pricing allows you to pay for the computing power you need by the hour. This is an excellent stopgap for short-term, high-powered computing solutions. If you need those resources for a more extended period, the Reserved pricing model might be a better fit. In this scenario, you’ll commit to using the computing power you’re putting together for a set time frame: either one or three years. The third option, Spot, is a combination of the first two options. Amazon has a lot of computing resources that aren’t at 100 percent use 100 percent of the time — while they’re sitting there, though, that potential power isn’t making any money. Spot pricing lets you bid on those available resources for pennies on the dollar, but the trick is that getting those resources isn’t guaranteed. Knowing what pricing models are available will help you determine which is best for any situation.
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