This article will provide a brief overview of the three most common pricing models on AWS, but all cloud providers offer the same three pricing models with varying conditions. Elastigroup utilizes these pricing models to ensure that your computing cluster is always cost-optimized. To learn more about your cloud provider’s pricing visit their website.


In the On-Demand pricing model, users pay only for the instances they run. This is the standard pricing model for all cloud providers and the base price for all discounted models.

Spot Instances

AWS provide their spare compute capacity, known as Spot Instances, at a heavily reduced price, which varies based on supply and demand but may be interrupted should the capacity be needed for Reserved or On-Demand computing. Spot Instances pricing can be up to 80% less than On-Demand pricing.

Reserved Instances

AWS offers a discount of 31-75% in exchange for a long-term commitment. The exact discount depends on the length of commitment (1 or 3 years), the amount paid up-front and whether you’d like to be able to change the instance reserved for you.

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