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Reserved Instances

  • What it is
    • A 1-year or 3-year commitment to a specific instance configuration in exchange for up to ~72% off On-Demand.
    • A billing discount, not a physical reservation of hardware (unless it is a zonal RI).
  • Payment options
    • All Upfront (biggest discount) → Partial Upfront → No Upfront (smallest discount).
  • Two flavors
    • Standard RI — largest discount, can change AZ/size within the family, cannot change instance family. Can be sold on the RI Marketplace.
    • Convertible RI — smaller discount, can be exchanged for a different family, OS, or tenancy.
  • Regional vs Zonal
    • Regional RI — flexible across AZs in a Region, no capacity reservation.
    • Zonal RI — locked to one AZ, but does reserve capacity.
  • In AWS Organizations
  • Not to be confused with
    • Savings Plans — commit to a dollars-per-hour spend, not an instance configuration. More flexible, usually the modern recommendation.
    • Capacity Reservations — reserve capacity with no discount attached.

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