Why buy a Reserve Instance (RI) / Reserve Instance (RI) Explained?

Today, organizations use the cloud to get its benefits that include but not limited to cost reduction, universal access, and flexibility. If your company has been using a cloud, then you must be aware of the fact that its costs increases based on its usage. More your organization uses the cloud more will be the cost. AWS Reserve Instance (RI) can help reduce the cost, as it brings significant discounts up to 70% depending upon the reservation type and its commitment your organization selects.

It is true that AWS Reserve Instance (RI) has the capability to reduce the cost of the cloud significantly, but this is possible only when you have a good understanding of RI and how it works. The good knowledge will result in benefits, and a wrong decision may snip significant amount of money, putting the burden on the company’s finances. So, in this article, we will help you understand “what is a Reserve Instance (RI),” “why buy a Reserve Instance,” and “different types of AWS RIs.”

What is a Reserve Instance (RI)?


Image source – aws.amazon.com/ec2/pricing/reserved-instances/

In simple terms, we can relate Reserve Instance with the reservation system where we get some rights to use a particular product, item, service, or facility based on the reservation we are given. For example, when you buy a ticket to fly from Thailand to Bangkok, then you get a reservation in the airplane for a seat based on the amount you have paid. Similarly, AWS RI is a reservation that reserves resource and capacity for a particular time-slot, which can be either one year or three years. This reservation can be done for an availability zone within a region as per your business requirements. Once the reservation is made, you can use the RIs and get its benefits, which is probably the high return on investment.

Why buy a Reserve Instance?

Reserve instances have several benefits, as listed below:

  • Saving: The top most benefit of using AWS RIs is the cost saving. You can save up to 74% by making an upfront payment for the resources and the capacity you need. With an all upfront method, you save big unlike the on-demand method where you pay again and again, but with RI you buy once and use the RIs until the commitment period.
  • Resource reservation capacity: The second benefit is that you can reserve the capacity to be utilized in different regions as per your business requirements. With this, you can quickly overcome the sudden traffic spikes on your website or app, if it has an auto-scaling feature that can utilize the reserved capacity available in a particular availability zone of a region. However, in the absence of reserved capacity, a sudden traffic spike may shut your app until the traffic is reduced or unless you take the required action.

Different types of AWS RIs

Based on the commitment and reservation type, AWS RIs can be divided into the below types:

  • No upfront with 1 year commitment
  • Partial upfront with 1 year commitment
  • All upfront with 1 year commitment
  • Partial upfront with 3 year commitment
  • All upfront with 3 year commitment

You can select one of these RIs for your organization and save a potential amount. Longer commitment with all upfront can save you up to 70%.

Deepak Gupta

Deepak Gupta is a Freelancer. He does freelancing related to Ebook Conversion, SEO, SEO Copy writing, Guest Blog Posts, and much more. He can be contacted at http://www.fiverr.com/weformat

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