What Is a Reserved Instance Commitment?
A reserved instance is a billing commitment in which you agree to use a specific instance configuration for a fixed term in exchange for a lower rate. The discount applies to matching usage, and unused reservations still incur the commitment cost. Reserved instances suit steady, predictable baseline workloads rather than spiky demand.
Why it matters
On-demand pricing is convenient but expensive for capacity that always runs. Reservations cut the cost of that stable baseline, while spot and on-demand cover the variable portion.
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