Explanation
On-Demand Instances are the default pricing model for Amazon EC2 instances. Here's why:
- On-Demand Instances allow you to pay for compute capacity by the hour or second with no long-term commitments
- This is the most straightforward pricing model where you simply launch instances and pay for what you use
- No upfront payment or long-term commitment is required
- This makes it the default choice for users who are new to EC2 or have unpredictable workloads
Comparison with other options:
- Savings Plans: Require commitment to a consistent amount of usage (measured in $/hour) for 1 or 3 years
- Spot Instances: Offer significant discounts but can be interrupted with short notice when AWS needs capacity back
- Reserved Instances: Require upfront payment or commitment for 1 or 3 years in exchange for significant discounts
When you launch an EC2 instance through the AWS Management Console without specifying any special pricing model, you automatically get On-Demand pricing.
