Amazon announced today the availability of Reserved Instances. Basically, you pay a one-time fee and get a significant discount on the hourly rate for that instance.
Their rates are available here.
After doing some calculations on it, I figured out the break even point between the old “On-Demand Instances” and the new “Reserved Instances.”
For the current 1 year term, the break-even point is 193 days. For the 3 year term, the break even point is 298 days. So basically, if you’re going to be running a particular instance for much more than a year, you should probably sign up for the 3 year term.
Here’s a brief comparison of the year by year costs for a small instance. I’ve only listed the small instance type since the costs for the other instance types are all proportional (e.g. large is 4x and xlarge is 8x.)
|1st year costs||2nd year costs||3rd year costs||3 year Total|
|1 year term||$587.80||$587.80||$587.80||$1,763.40|
|3 year term||$762.80||$262.80||$262.80||$1,288.40|
(I’m not sure why the spacing is so funky on this post with a table in it.)