AWS Instance Types Pricing

AWS Free tier offers EC2 instances for free. t2.micro instance was for up to a certain limit like 750 hours. If you want to go for a premium plan then it offers three types of plans. They are

On-Demand

On-Demand it charges based on the no.of hours or seconds you use. With the help of on-demand instances, you can avoid maintaining infrastructure costs.

On-Demand Instances are recommended for:

1. Low cost without any upfront payment or long-term commitment.
2. For testing applications that are being developed. 

Saving Plan 

When compared to on-demand you can reduce the bill by up to 72%. In order to do that you need to give a commitment to AWS of using for such an amount of time like up to 1 to 3-year term.

Types of saving plans:

1. Compute Savings Plans.
2.  EC2 Instance Savings Plans.
3. SageMaker Savings Plans.

Savings Plans are recommended for:

1. For faster and newest families.
2. Steady and consistent usage. 

Amazon EC2 Spot Instances

When compared to other instance plans you can cheaper upto 90% discount. These are unused instances.

Spot Instances are recommended for:

1. Applications that don’t need to save their state.
2. Application flexible start and end time.

Pre-requisites: AWS

Different Amazon EC2 instance types are designed for certain activities. Consider the unique requirements of your workloads and applications when choosing an instance type. This might include needs for computing, memory, or storage.