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Reserved Instance

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September 14, 2019

Reserved Instances provide you with a significant discount compared to On-Demand Instance pricing. Reserved Instances are not physical instances, but rather a billing discount applied to the use of On-Demand Instances in your account. These On-Demand Instances must match certain attributes in order to benefit from the billing discount.

The following diagram shows a basic overview of purchasing and using Reserved Instances.

In this scenario, you have a running On-Demand Instance (T2) in your account, for which you're currently paying On-Demand rates. You purchase a Reserved Instance that matches the attributes of your running instance, and the billing benefit is immediately applied. Next, you purchase a Reserved Instance for a C4 instance. You do not have any running instances in your account that match the attributes of this Reserved Instance. In the final step, you launch an instance that matches the attributes of the C4 Reserved Instance, and the billing benefit is immediately applied.

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