Overview
Reserved capacity (e.g., AWS Reserved Instances, Google Cloud Committed Use Discounts) allows organizations to save up to 70% compared to standard 'on-demand' pricing. It is ideal for workloads with predictable, steady-state usage.
Key Characteristics
- Term Commitment: Usually 1 year or 3 years.
- Payment Options: Can often be paid all upfront, partially upfront, or monthly.
- Flexibility: Some reservations allow you to change instance types or regions during the term.
- Capacity Reservation: In some cases, it also guarantees that the capacity will be available when you need it.
Use Cases
- Production databases.
- Core application servers.
- Any workload that runs 24/7.