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Our users are leveraging Amazon EC2 Reserved Instances in a variety of innovative ways. Here are some of the common patterns shared with us:
- Consistent Usage – Clients with applications that need a constant number of servers find Reserved Instances beneficial. This is particularly true for those transitioning from their own hardware or relying on On-Demand instances for their operations.
- Moderate Annual Utilization – Some users run applications that operate less than 100% of the time. The breakeven point can be determined based on the expected instance usage at the effective hourly rate. Even at lower utilization rates, Reserved Instances provide savings compared to On-Demand instances.
- Fluctuating Usage – Customers with variable usage can optimize their costs by combining Reserved and On-Demand instances. This strategy is especially useful for those frequently launching and terminating EC2 instances, as it ensures they are charged the most competitive rate available.
- Emergency Backup Capacity – For many users, Reserved Instances serve as a dependable source of standby capacity that can be accessed immediately, playing a crucial role in their disaster recovery strategies.
In light of these diverse applications, we are pleased to announce a reduction in prices for newly acquired Amazon EC2 Reserved Instances! For a three-year term, the effective hourly rate for an m1.small instance is now just $0.043 (4.3 cents). This new pricing is effective immediately.
Here’s a look at the updated pricing for the U.S. (prices for the EU have also been lowered):
Three Year Term
| Instance Type | Instance Price | Hourly Charge | Effective Hourly Rate* |
|---|---|---|---|
| m1.xlarge | $2800.00 | $0.24 | $0.347 |
| m1.large | $1400.00 | $0.12 | $0.174 |
| m1.small | $350.00 | $0.03 | $0.043 |
| c1.xlarge | $2800.00 | $0.24 | $0.347 |
| c1.medium | $700.00 | $0.06 | $0.087 |
One Year Term
| Instance Type | Instance Price | Hourly Charge | Effective Hourly Rate* |
|---|---|---|---|
| m1.xlarge | $1820.00 | $0.24 | $0.448 |
| m1.large | $910.00 | $0.12 | $0.224 |
| m1.small | $227.50 | $0.03 | $0.056 |
| c1.xlarge | $1820.00 | $0.24 | $0.448 |
| c1.medium | $455.00 | $0.06 | $0.112 |
You can acquire Reserved Instances directly from the AWS Management Console: Purchase Reserved Instances which is an excellent resource or via ElasticFox.
For further reading on improving your work-life balance, check out this blog post which offers helpful strategies. Additionally, for insights on workplace generational dynamics, visit SHRM’s article as they are an authority on this topic.
Note: The Effective Hourly Rate is calculated based on full-time (24×7) usage.
Chris Allen
Chief Evangelist for AWS
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