Amazon Web Services (AWS) is the top provider of cloud-based web services around the world. According to reports, there are well over 1 million active enterprise customers spread across 190 countries where AWS provides its server-based storage and computing services. AWS has collaborated with over 8,000 members in its partner network and offers an extensive range of over 1,900 3rd party software products to ensure optimal server services. 

AWS has strategically placed server banks spread across more than 18 locations in 52 Availability Zones around the globe, which has successfully helped over 54,000 database migration processes till date. On an average, AWS helps run over 70 million hours of software tests per month. These incredible achievements have enabled AWS to capture a lion’s share of the market with 31% market penetration. 

What are AWS Reserved Instances?

AWS provides an extensively scalable computing capacity through its Elastic Compute Cloud (EC2) within its web-based services. The AWS EC2 helps users avoid investing significant amount of capital to create and configure an in-house IT base.

AWS EC2 is designed specifically for users to develop and deploy applications quicker and with increased efficiency. AWS EC2 computing environment is extremely flexible as it allows users to launch as many virtual servers required, along with extensive storage management, configuring security levels and specifying network settings. The incredible flexibility of AWS EC2 lets users scale up and scale down their computing requirements on the virtual servers in real-time. This is an excellent way to not worry about predicting traffic for your future needs. 

What is AWS EC2 Instance?

Instances are the virtual computing environment created by AWS cloud servers for users to develop and test their applications quickly and more efficiently. 

Some of the top features that make AWS EC2 a more preferable choice for users are:

  • Preconfigured templates – These are designed for instances and are known as AMIs, short for Amazon Machine Images. This is an excellent way to choose the type of operating system (OS) and additional software that suit your particular requirements. 
  • Instance types – These are different combinations of varied memory, storage, CPU and networking capacity that you can select as per your needs. 
  • Key pairs – This helps to secure log-in information for your instances. The public key is stored by AWS while the private key is held by the user at a secure location. 
  • Instance store volumes – These are storage volumes meant for temporary data which is deleted when the user stops, terminates or puts an instance on hibernation. 
  • Regions / Availability Zones – AWS stores data and creates virtual servers at these multiple secure locations spread across the globe.

Important Bits about AWS Reserved Instance Pricing

Amazon Web Services (AWS) EC2 Reserved Instances (RIs) are designed to provide users with a reserved virtual storage and computing capacity, when used within specified Availability Zones. The AWS EC2 RIs offer a discount of as much as 72% off, as compared to the On-Demand instance pricing for similar configuration. 

Amazon EC2 RIs have three major advantages for users:

  1. Reserved Storage/Computing Capacity – Reserved Instances (RIs) provide a capacity reservation. It allows users to launch any number of reserved instances whenever required. 
  2. Flexibility – AWS EC2 RIs also incredibly flexible and allow users to choose and change the type of family, tenancy and operating system (OS) at a significantly less price (with regard to the same configuration in On-Demand pricing model).
  3. Save money – AWS EC2 RIs are available at a highly reduced rate, with as much as 72% off as compared to On-Demand pricing model for the same configuration. 

Are there different types of AWS EC2 RIs?

Yes, there are three types of AWS EC2 RIs available for users. These include:

  • Standard RIs – Standard Reserved Instances (RIs) offer the largest discount (as much as 72% off) when compared to the same configuration within On-Demand pricing model. These are specifically designed for steady-state use. 
  • Convertible RIs – Convertible Reserved Instances (RIs) provide a lesser discount (up to 54% off). It also allows users to modify the attributes of the RIs if the change results in developing an RI which has a value equal to/greater than the original Reserved Instance. 
  • Scheduled RIs – Scheduled RIs are made to be deployed within the period of time it has been reserved for. With Scheduled RIs, users can easily match their capacity reservation according to a predictable repeating schedule which needs only a fraction of a day, week or month. 


Amazon Web Services’ EC2 RIs are best-suited for small enterprises and startups who do not wish to invest a large capital into creating and maintaining an in-house IT infrastructure. AWS EC RIs are incredibly effective for cheaper and faster application testing using advanced cloud computing and storage technology from Amazon. 

AWS EC2 Convertible RIs


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.