AWS 093: On-Demand, Reserved and Spot Instances
The real problem
A team recognizes the name On-Demand, Reserved and Spot Instances but has not connected the feature to a real requirement, identity boundary, network or data path, failure mode, price dimension, and cleanup owner. A plausible configuration could still fail the workload.
Final outcome
The learner will produce a requirement-led artifact for On-Demand, Reserved and Spot Instances, inspect the matching AWS control plane in the Management Console, run a matching CloudShell or AWS CLI query, interpret the output, diagnose one failure, defend one architecture choice, and prove cleanup or approved retained state.
The practical outcome is not a command transcript. It must show what was expected, what happened, what the result proves, what it does not prove, and which evidence would change the decision.
Learning objectives
By the end of this lesson, the learner can:
- explain on-demand is flexible usage pricing;
- explain reserved instances are billing benefits;
- explain spot uses spare ec2 capacity;
- explain spot interruption notice is short;
- explain savings plans are another commitment model;
- connect control-plane state to the real data, network, identity, or application behavior;
- identify cost and cleanup ownership before any optional mutation;
- troubleshoot from evidence without opening broad access or adding broad permissions.
Relationship model
Requirement
|
v
Identity and policy -> AWS configuration -> network or data path -> workload behavior
| | | |
+--------------------+----------------------+--------------------+
|
v
monitoring, cost, recovery, cleanup
Use this model to separate an AWS object that exists from a result that actually works. Every arrow is a verification boundary.
Prerequisites, permissions, Region, and safety
- Learning baseline: This sequence assumes practical Linux knowledge but no prior cloud-computing or AWS knowledge. Cloud, networking, security, data, automation, and architecture concepts must come from completed earlier lessons. If a prerequisite checkpoint is incomplete, return to its linked lesson before continuing.
- Confirm a non-root caller with
aws sts get-caller-identityand keep the account number private. - Use
ap-south-1unless this lesson explicitly names a second Region. - Confirm the intended profile and Region with
aws configure listbefore interpreting an empty result. - Use read-only List, Get, and Describe permissions for the named services. Design exercises run locally and require no resource-creation permission.
- This is a no-create lesson. Console and CLI work is read-only, and every design artifact is created locally.
- Never publish account IDs, public addresses, ARNs containing private account data, session IDs, presigned URLs, object data, credentials, or KMS material.
- Do not use root, world-open SSH or RDP, disabled TLS verification, unowned resources, or irreversible retention controls in a training exercise.
Core model
| Concept | What the learner must understand |
|---|---|
| On-Demand is flexible usage pricing | There is no long-term commitment for ordinary On-Demand Instances. It is useful for uncertain, short-lived, or changing workloads but does not reserve capacity by itself. |
| Reserved Instances are billing benefits | Standard and Convertible RIs apply discounts to matching usage for a term. A zonal RI also provides a capacity reservation; a regional RI provides broader size flexibility in supported families but no capacity reservation. |
| Spot uses spare EC2 capacity | Spot can be interrupted when EC2 needs the capacity or the request no longer meets constraints. It offers deep discounts for interruption-tolerant workloads. |
| Spot interruption notice is short | EC2 normally provides a two-minute interruption warning through instance metadata and EventBridge before stop or terminate, when warning is possible. Rebalance recommendations can arrive earlier but are not guaranteed. |
| Savings Plans are another commitment model | They apply discounts based on a committed hourly spend and should be compared with RIs. They do not reserve EC2 capacity. |
| A portfolio usually blends options | Use commitments for measured baseline, Spot for flexible fault-tolerant capacity, and On-Demand for unpredictable remainder or workloads that cannot tolerate interruption. |
How it works
Do not commit before rightsizing and measuring. Model Region, family, operating system, tenancy, term, payment option, utilization, seasonality, growth, and recovery capacity. A high discount on an unused commitment is still waste.
Read the result in layers:
- Scope: account, Region, VPC, bucket, AZ, endpoint, principal, object version, or resource ARN.
- Control plane: the requested configuration exists and reached an expected state.
- Behavior: the request, connection, health check, replication, restore, or application result meets the requirement.
- Operations: monitoring, failure owner, cost, retention, rollback, and cleanup are known.
Control-plane success is necessary but not sufficient. A resource can be available while policy, routing, DNS, health, data, or application behavior remains wrong.
Architecture decision table
| Requirement | Preferred direction | Why |
|---|---|---|
| Unknown new workload demand | On-Demand first | Measure behavior before accepting a long commitment. |
| Stable measured baseline for one or three years | Compare Savings Plans and RIs | Commit only the durable portion after rightsizing. |
| Stateless queue workers can retry | Diversified Spot capacity | Interruptions are acceptable and several pools improve availability. |
| Exact AZ capacity must exist for launch | Capacity Reservation or zonal RI | A billing discount alone does not hold physical capacity. |
Professional questions normally contain several valid services. State the requirement that selects one option, why the nearest alternative fails it, and what changed requirement would reverse the choice.
AWS Management Console guided practice
Before opening a service page, write the expected account, Region, starting state, and evidence. Do not choose Create, Save, Purchase, Lock, or Delete unless the lesson explicitly authorizes the live track.
- Open EC2 Instances and add the Instance lifecycle column to identify Spot versus ordinary On-Demand capacity.
- Open Reserved Instances and Savings Plans recommendations to compare measured commitment options without purchasing.
- Open Spot Requests or Auto Scaling mixed-instance settings and inspect interruption behavior, capacity pools, and allocation strategy.
For each step, capture the field name and value in text. A screenshot may support the record but does not replace the explanation. Console labels can evolve, so use the service search and current documentation if a navigation label differs.
CloudShell and AWS CLI practice
CloudShell is the default browser-based command environment taught in AWS 028. AWS 029 and AWS 030 cover local CLI installation and authentication. This lesson therefore does not assume that an unconfigured local shell is ready.
Start every session with:
export AWS_DEFAULT_REGION="ap-south-1"
aws sts get-caller-identity --query Arn --output text
aws configure list
Redact the account portion of the ARN before sharing. Then perform the topic query:
Check the lifecycle and purchase context of running instances, then compare billing reports separately.
aws ec2 describe-instances --filters Name=instance-state-name,Values=running --query 'Reservations[].Instances[].{Instance:InstanceId,Type:InstanceType,Lifecycle:InstanceLifecycle,AZ:Placement.AvailabilityZone,Tenancy:Placement.Tenancy}' --output table
Expected interpretation:
Lifecycle spot identifies Spot instances; a blank lifecycle normally means On-Demand capacity. RI and Savings Plans discounts are billing matches and are not attached as an instance lifecycle label.
Replace every replace-with-... sample value before running its command, and use only an explicitly owned resource. Explain each option first. These queries are read-only; a successful response does not authorize a later create or delete operation.
Practical work
Create p05-purchase-model.md. Classify P05 baseline, predictable production baseline, interruption-tolerant batch, and emergency capacity across On-Demand, Standard and Convertible Reserved Instances, Spot, and scheduling. Separate billing discount, capacity guarantee, tenancy, interruption, and workload state. Use current pricing without purchasing anything.
The evidence package must contain:
- the problem and final requirement in the learner's own words;
- caller type and Region with private identifiers redacted;
- exact planned values, ownership, and cost class;
- one Console observation and matching CLI or API evidence;
- one behavior result or supplied data-plane record;
- one denied, failed, or counterexample result and evidence-led diagnosis;
- one architecture choice plus the rejected alternative;
- cleanup proof or explicit retained-state owner, expiry, and next lesson.
Verification standard
Use expected state before observed state. Record timestamps in UTC and preserve the original failure before changing anything. A passing submission answers all four questions:
- What exact requirement was tested?
- Which evidence proves the AWS configuration?
- Which evidence proves the workload behavior?
- What remains unproven or requires later monitoring?
If AWS returns no rows, verify account, Region, permission, filters, pagination, resource type, and deletion state before concluding that nothing exists.
Common failures and troubleshooting
| Symptom | Evidence first | Likely boundary | Smallest safe response |
|---|---|---|---|
| object appears missing | caller, Region, filters, pagination, tags | scope or read permission | align scope before creating a duplicate |
| state remains pending or unavailable | service state, events, dependencies, quotas | dependency or capacity | correct the named dependency and wait with a bound |
| AccessDenied | principal, action, resource, explicit-deny context | identity, resource, endpoint, organization, or KMS policy | change only the proven policy layer |
| configuration exists but behavior fails | route, DNS, security, listener, health, logs, object version | data path or application | test the next boundary and change one control |
| bill is higher than expected | hours, bytes, requests, AZs, addresses, retention | cost model or retained resource | stop optional work and reconcile the ledger |
| cleanup is blocked | dependency inventory and owning service | deletion order or immutable state | remove owned dependants in reviewed reverse order |
Do not troubleshoot by attaching administrator access, opening administration ports to the internet, disabling encryption, retrying uncontrolled creation, deleting unknown resources, or weakening retention.
Cost, cleanup, and retained state
No AWS resource is created. Close CloudShell and remove or redact downloaded evidence.
Cleanup evidence requires terminal state and an after-inventory. Search related ENIs, public IPv4 addresses, EBS volumes and snapshots, load balancers, target groups, Auto Scaling instances, endpoints, logs, S3 versions and delete markers, backup recovery points, and global IAM roles when they apply. Billing data can lag, so schedule a later review.
Architecture and certification decisions
- Certification coverage: SAA-C03; SOA-C03; SAP-C02; DOP-C02.
- Exam mapping: SAA D2-D4.
- Explain service scope, failure boundary, consistency, recovery, security, operations, and price rather than matching a keyword.
- Treat availability and durability, encryption and authorization, routing and filtering, health and lifecycle, backup and replication, and discount and capacity as separate concepts.
- Do not reproduce protected certification questions.
Knowledge check
- Does a regional Reserved Instance reserve capacity?
Expected direction: No. A zonal RI provides capacity reservation; regional scope does not.
- How much Spot interruption warning is normally provided?
Expected direction: Two minutes when EC2 can provide the warning.
- Do Savings Plans reserve capacity?
Expected direction: No. Use a Capacity Reservation when launch assurance is required.
- What should be committed first?
Expected direction: A measured, rightsized, stable baseline, not forecast peak demand.
Completion gate and assessment
| Area | Points | Passing evidence |
|---|---|---|
| Requirement and model | 15 | Correct scope, terminology, and final outcome |
| Console evidence | 15 | Current path and interpreted fields |
| CLI or API evidence | 15 | Scoped command, expected result, and limitations |
| Behavior or decision exercise | 20 | Reproducible result or defensible architecture reasoning |
| Troubleshooting | 15 | Original symptom, hypothesis, one change, retest, rollback |
| Security and cost | 10 | Least privilege, data protection, current price dimensions |
| Cleanup and handoff | 10 | Terminal-state proof or approved retained-state record |
Pass at 80 out of 100 with no critical safety failure. A missing practical artifact, unexplained output, unsafe access, destructive action outside the owned scope, unplanned billed resource, or false cleanup claim requires remediation and a changed retest.