Q: What is a Reserved Instance?
Reserved instances provide you with a billing discount as well as a capacity reservation, so you can have confidence that you will be able to launch the instances you have reserved when you need them. Reserved Instances are not physical instances.
When you purchase Reserved Instances, you select a configuration to match your On-Demand instances that have the highest utilization. The billing discount is automatically applied to any running instances that match that configuration. You can also purchase Reserved Instances to apply to On-Demand instances that you intend to purchase in the future. As long as the reservation and instance specifications match, the discount will be applied.
There are three payment options (No Upfront, Partial Upfront, All Upfront) that enable you to balance the amount you pay upfront with your effective hourly price.
Q: What is the difference between a Reserved Instance and an On-Demand instance?
An On-Demand instance refers to the virtual machine, while a Reserved Instance is a billing benefit and capacity reservation for a machine in an Availability Zone which is applied to applicable virtual machines.
Q: Can you explain the capacity benefit of a Reserved Instance?
Reserved Instances provide you with a capacity reservation to give you confidence that you can launch instances in a specific Availability Zone, when you need them. This is particularly useful if you want to predict computing costs over a set period of time, and also allows you to scale up quickly.
Q: I own Light, Medium, and/or Heavy Utilization Reserved Instances. Does this change affect my volume discount?
You will see no change in your volume discount status. If you receive a 5% volume discount, you will continue to benefit from that discount as long as you maintain the total list value of your current, active reservations.
Q: I want to buy Light and/or Medium Utilization Reserved Instances from a third-party seller in the Reserved Instance Marketplace. How do they differ from No Upfront, Partial Upfront, and All Upfront Reserved Instances?
Previous generation Reserved Instances offer the same benefits as the current generation Reserved Instances in terms of savings. The difference is in how hourly costs are calculated.
- Light Utilization Reserved Instances: These offer the lowest upfront payment requirement. Along with this low upfront payment, you receive a significantly discounted hourly usage fee. Light Utilization Reserved Instances allow you to turn off your On-Demand instance at any point and not pay the hourly fee. They are ideal for instances with sporadic usage, such as development and test instances that run for about 7 - 12 hours a day, or instances that are used for short-term projects and run for 3 - 7 months in a year.
- Medium Utilization Reserved Instances: These have a higher upfront payment than Light Utilization Reserved Instances, but a much lower hourly usage fee. Medium Utilization Reserved Instances allow you to turn off your On-Demand instance at any point and not pay the hourly fee. They are best-suited for workloads that run most of the time, but have some variability in usage.
Previous generation Reserved Instances are only available on the Reserved Instance Marketplace from third-party sellers, and have varying terms.
Q: How do I purchase and start up a Reserved Instance?
You can purchase Reserved Instances through the Amazon EC2 Console or by using the EC2 API tools.
In the Amazon EC2 Console, choose "Reserved Instances" in the left-hand navigation, and select "Purchase Reserved Instances". The wizard will walk you through the purchase.
Using the API tools, you can list the available Reserved Instances for purchase with the DescribeReservedInstancesOfferings API method. You can then purchase a Reserved Instance by calling the PurchaseReservedInstancesOffering method.
Reserved Instances are not physical instances, so they don't have to be launched or started up. The reservation is automatically applied to running instances in your account, and you immediately start benefitting from the lower hourly cost. If you don't have a running instance that matches your reservation's specifications, you can launch one via the Amazon EC2 Console or call the RunInstances API method. AWS will automatically apply the cheapest, eligible rate.
Q: How do I reserve capacity for an existing, running instance?
To reserve capacity for a running instance, you can purchase a Reserved Instance or modify an existing reservation so it matches your instance's specifications. You can purchase Reserved Instances via the Amazon EC2 Console or by using the PurchaseReservedInstancesOffering API. You can modify existing Reserved Instances via the Amazon EC2 Console or by using the ModifyReservedInstances API call.
In both cases, the reservation must match the following attributes of the running instance you want to cover:
- Availability Zone (e.g., us-east-1a)
- Instance type (e.g., m3.large)
- Platform (e.g., Linux/UNIX (Amazon VPC))
- Tenancy (e.g., default)
Q: How do I control which instances are billed at the lower rate?
The RunInstances API command does not distinguish between On-Demand instances and the reservations that can be applied to them. When computing your bill, our system will automatically optimize which instances are charged at the lower rate to ensure you always pay the lowest amount.
Q: How many Reserved Instances can I purchase?
You can purchase up to 20 Reserved Instances per Availability Zone each month. If you need additional Reserved Instances, complete the form found
here. Information about previous generation Reserved Instance types can be found
here.
Q: Can I reassign my Reserved Instance from one instance type (e.g., c1.xlarge) to another (e.g., m1.large)?
No. A Reserved Instance is associated with a specific instance type for the duration of its term; however, you can change from one instance size (e.g., c3.large) to another (e.g., c3.xlarge) in the same type, if it is a Linux/UNIX Reserved Instance.
Q: Can I move a Reserved Instance from one region to another?
No. A Reserved Instance is associated with a specific region, which is fixed for the duration of the reservation's term.
Q: Can I modify a Reserved Instance?
Yes. You can request to modify active reservations that you own in one of the following ways:
- Move between Availability Zones within the same region.
- Change the network platform from EC2-Classic to EC2-VPC (for EC2-Classic-enabled customers).
- Change the instance type of your Linux/UNIX Reserved Instances to a larger or smaller size in the same instance type (e.g., convert 8 m1.smalls into 4 m1.mediums, or vice versa).
Instance type modifications are only supported for Linux/UNIX platform reservations. However, due to licensing differences Linux Reserved Instances cannot be modified to RedHat or SUSE Linux Reserved Instances.
The reservations that you modify must have been purchased on the same day, be the same instance type, and in the same Availability Zone and region. It is not possible to combine reservations. However, if you have multiple instances in the same reservation (i.e., the reservation was purchased to apply to 10 instances), you can modify each of these instances either individually or as a whole.
Q: How do I request changes or modifications?
You can submit a modification request from the Amazon EC2 Console or by using the ModifyReservedInstances API. We process your requests as soon as possible, depending on available capacity. There is no additional cost for modifying your Reserved Instances.
Q: What happens when I modify the Availability Zone or network platform of a Reserved Instance?
If you change the Availability Zone of reservation, the capacity reservation and pricing benefits no longer apply to the original Availability Zone, and start applying to usage in the new Availability Zone.
If you modify the network platform of a Reserved Instance, its capacity reservation no longer applies to the original network platform and starts applying to usage with the new network platform. Pricing benefits continue to apply to both EC2-Classic and EC2-VPC instance usage matching the rest of the reservation parameters.
Q: What happens when I modify the instance size of a Reserved Instance?
If you have an Amazon Linux/UNIX Reserved Instance in an instance type with multiple instance sizes (e.g., M1, M2, M3, or C1) you can request to modify the type of instance that the reservation covers in one of two ways:
- You can consolidate multiple smaller reservations into a single larger reservation. For example, you can modify 8 m1.smalls at $0.014/hour each and create a reservation for 4 m1.mediums at $0.028/hour each, 2 m1.larges at $0.056/hour each, or 1 m1.xlarge at $0.112/hour.
- You can divide a larger reservation into multiple smaller reservations. For example, you can modify a reservation for 1 m1.xlarge at $0.112/hour into a reservation for 2 m1.larges at $0.056/hour each, 4 m1.mediums at $0.028/hour each, or 8 m1.smalls at $0.014/hour each.
Q: How quickly do modifications take effect?
Modifications are processed as soon as possible but may take up to two hours to be applied. If the modification succeeds, the new capacity reservation becomes effective immediately and the new pricing benefit starts applying to matching instance usage at the beginning of the current hour.
For example, if your reservation is successfully modified at 11:15, the new capacity reservation is applied at 11:15 but the pricing benefit will apply retroactively to matching instance usage starting from 11:00.
However, if you request to modify your reservations in the last hour of a month, your changes become effective in the first hour of the next month.
Q: Do I need to specify an Availability Zone when I launch my instances in order to take advantage of my reservations?
Yes. When you purchase a Reserved Instance you specify the Availability Zone in which you want to reserve capacity for instances. In order to benefit from the reservation, ensure that you launch your instances in the same Availability Zone. Additionally, you can purchase a reservation in an Availability Zone where you already have running instances, and the billing discount will automatically be applied to matching, running instance(s).
Q: Can I cancel a Reserved Instance?
No, you cannot cancel your reservation and the one-time payment is not refundable.
Q: How do the payment options impact my bill?
When you purchase Reserved Instances under the All Upfront payment option, you pay for the entire term of the reservation in one upfront payment.
If you have an account with a successful billing history, you can choose the No Upfront option. The entire value of the reservation is spread across every hour in the term and you will be billed for every hour in the term, regardless of usage.
The Partial Upfront payment option is a hybrid of the All Upfront and No Upfront options. You make a small upfront payment, and you are billed a low hourly rate for every hour in the term regardless of usage.
Q: When are Reserved Instances activated?
The billing discount and capacity reservation is activated once your payment has successfully been authorized. You can view the status (pending | active | retired) of your reservations on the "Reserved Instances" page of the Amazon EC2 Console.
Q: Can I use my Reserved Instances with Windows to run a Windows with SQL Standard Server AMI?
Q: How do Reserved Instances work with Consolidated Billing?
The account you use to purchase Reserved Instances will receive the capacity reservation. Our system automatically optimizes which instances are charged at the lower rate to ensure that the payer account always pays the lowest amount.
In terms of volume discount tiers, if you leverage Consolidated Billing, AWS will use the aggregate total list price of active reservations across all of your consolidated accounts to determine which volume discount tier to apply. Volume discount tiers are determined at the time of purchase, so you should activate Consolidated Billing prior to purchasing Reserved Instances to ensure that you benefit from the largest possible volume discount tier that your consolidated accounts are eligible to receive.
Q: How do the volume discount tiers work?
When you purchase Reserved Instances in a region, and their values adds up to a value determined by AWS, you automatically receive discounts on your upfront fees and hourly fees for future purchases of Reserved Instances in that region.
These discounts are determined based on the total list value (non-discounted price) of upfront fees for the active reservations you have per region. Your total list value is the sum of all expected payments for a reservation within the term, including both the upfront and recurring hourly payments. The following are the volume discount tiers:
- $0-$500K: Upfront - 0%, Hourly - 0%
- $500K - $4M: Upfront - 5%, Hourly - 5%
- $4M - $10M: Upfront - 10%, Hourly - 10%
- $10M+: Contact Us
When you have active Reserved Instances with a list value totaling more than $500,000 in a single region, you will automatically receive a 5% discount on both upfront and hourly fees for all future purchases in that region. Discounts will continue to apply to new reservations as long as you continue to qualify for this volume discount tier.
To illustrate, let's assume you currently have $400,000 worth of active Reserved Instances in us-east-1. You want to purchase 75 Reserved instances with a list value of $2000 each. That would be a total of $150,000 without any discount tiers.
The first $100,000 of this purchase would be discounted at 0 percent. The remaining $50,000 of this purchase would be discounted by 5 percent, so you would only be charged $47,500 over the term for the purchase, and you would pay discounted hourly fees on those reservations.