Amazon Web Services, also known as AWS short, has been offering cloud servers through web services since 2006, making it the leading and most popular cloud computing platform.

According to statistics by BleylDev at, AWS reportedly occupied the lion’s share of the industry with a 31% market share in mid-2020 and continues to hold this share to date. There are over 700,500 companies worldwide using AWS cloud services. In addition, the cloud computing market is predicted to grow to an astounding US$ 600 billion by 2023. As of today, over 94% of companies use cloud-based computing and storage services in one form or another.

How AWS Helps?

Cloud server companies have achieved these incredible feats, and Amazon Web Services in particular, by the immense and varied benefits of cutting-edge cloud technology. Cloud computing helps avoid the enormous cost of building an in-house IT infrastructure by providing a cost-effective and scalable cloud-based computing platform. Cloud technology is an excellent, low-cost alternative for startups and other enterprises who wish to avoid the high cost of buying servers and creating their own IT setup.

AWS today offers its incredibly low-cost but powerful cloud computing services to businesses in 190 countries worldwide. Amazon Web Service has a pan-global server network with data centers located at strategic places around the world, such as Australia, Japan, Singapore, Europe, Brazil, the US, etc.

To avail of these amazing cloud-computing services, users need only sign up for AWS, watch a short 10-minute video to learn how to use the services and you can easily launch a WordPress website on AWS. The services also offer sample applications, technical documentation and developer tools that help to launch and manage applications on cloud resources.

Benefits of AWS Reserved Instances

Reserved Instances (RIs) are a means of getting a discounted rate (reduction of as much as 72%) in your AWS invoice. As compared to the On-Demand pricing model, the RI model offers a greater discount and even provides a capacity reservation in particular Availability Zones.

As AWS EC2 RIs offer the option to reserve capacity for computing, your ability to launch the reserved instances promptly increases and becomes more efficient.

In addition, the AWS EC2 RIs also offer incredible flexibility when it comes to switching from one family, tenancy or OS type to another. This flexible service also comes with an additional discount when used as Convertible RIs.

However, the leading benefit of the AWS EC2 Reserved Instance pricing model is the ability to save as much as 72% when compared to the same requirements in the On-Demand pricing model. This discount is provided on the hourly rate a user is normally charged for AWS EC2 instances. At the time of billing, the RI’s discounted rate is automatically taken into consideration when the user’s EC2 instance properties match the properties of an active, reserved instance.

New AWS EC2 RI Payment Model

There are basically two benefits that the AWS EC2 Reserved Instances model provides – assurance of flexible capacity and reduced hourly rate. These benefits can be gained with an upfront payment. Amazon Web Services has simplified its RI payment model even further.

The new Reserved Instance (RI) payment model offers a single type of reserved instance but with three different payment options. The capacity assurance and heavily discounted hourly rates (as much as 63% lower as compared to On-Demand pricing rates) are offered with all three payment options under the 3-year term plan.

These are three payment options that offer incredible discounts and capacity assurance when you use AWS EC2 RIs:

  1. All Upfront – This payment option requires users to pay the cost of the entire Reserved Instance term ( 1 or 3 years) in advance and get the best-discounted rates, as compared to On-Demand pricing.
  2. Partial Upfront – The AWS partial upfront payment plan requires users to pay a portion of the Reserved Instance in advance. The remaining payment is paid in installments over the course of the term plan (1 or 3 years). Users can spread their expenses between the advanced payment and the hourly rates using the AWS partial upfront payment method.
  3. No Upfront – Under this AWS EC2 RI payment plan, users are not required to make payments in advance. However, users must commit to making the payment over the 1-year term plan this payment model offers. In turn, AWS provides a discounted hourly rate (as much as 30% less) as compared to the On-Demand pricing model.


AWS EC2 RI services offer incredible flexibility at a heavily discounted hourly rate. You can choose the AWS partial upfront payment plan in case your budget allows for partial advance payment with the remaining charges paid throughout the term plan and offers all these services at a comparatively low price.

See Also

AWS no upfront reserved instance


Steve is a product-marketer and Engineer at Cloudysave who works with Cloud Management and Adoption team. Over the past years, he has collaborated with multiple teams to provide a robust and cost-effective architecture patterns to influence business and engineering decisions. His key areas of interests include Cloud Costs Management, Security and DevOps Best-Practices.