Here you and welcome back now in today's We Do will be discussing about the reserve instances indeed.
Now when it comes to reserve instances, do know that there are three primary tapes that are available.
One is standard reserve instance.
You have convertible reserve, instant and thoroughly scheduled reserve instance.
So the standard reserve instance primarily provides the most significant discount, which is up to 72
percent of the on demand and are also best suited for steady state use.
So let's say you're planning to run a database instance based on a specific instance type for next three
years.
Then it is best to go ahead and use a standard reserve instance.
Second is a convertible reserve instance.
They provide a discount of up to 54 percent of the OnDemand cost and also the capability to change various
attributes of a reserve instance.
Now, do not that for standard reserve instance, at a later stage, if you want to go ahead and change
various attributes, that is something that will be difficult to opt for.
Third is the scheduled reserve instance and now these are basically available to launch within the time
window you deserve.
So let's say every night from 2010 to six a.m., you have a batch based jobs that will be running for
the next three years.
So that for those kind of use cases, schedule reserve instances proved to be very useful.
Now, when you go ahead and discuss about standard instances as well as the convertible, no one of
the benefit for convertible reserve instances is that you can go out and convert it to a different instance.
Families, let's say, from three to four to see for you can convert to a new operating system, maybe
Windows to Linux, you can convert to new instance price.
If it reduces the public rate of the instance, you can convert the overall tendency as well.
So you have a lot of flexibility when it comes to a convertible reserve instance.
However, with the flexibility, the discount also reduces.
So this is one thing that needs to be noted now within the established pricing calculator, whenever
you go ahead and select a specific instance type.
So let's say this is the instance type that has been selected under the pricing strategy.
You always see that you have a standard reserve instance and you have a convertible reserved instance.
So let's try it.
So for standard reserve instance, the overall pricing for three years is two to three three.
However, when you discuss about the convertible reserve instance, the other things like reservation
terms and payment option remains to be the same.
You see the overall pricing change two two seven one two.
So it is much more expensive when it compares to the standard reserve instance, but it does come with
the flexibility.
Now, the next very important area of consideration, whenever you're planning to buy a reserved instance,
is the reservation.
Now, there are three primary reservation terms that are available.
You have no bachelor and all upfront, so then you select no upfront.
That basically means that no upfront financial constraint is required.
However, it comes with a caveat that basically means a lower discount rate is compared to others.
Second is bachelor friends.
So what you do is you make a low upfront payment and then you adjust the discounted hourly rate for
the instance for the duration of the deserved instance.
And third is all upfront what you do.
You go ahead and pay for that.
And that is the instance done with one upfront payment itself.
And this provides the largest discount.
So let's try it out.
So for the standard reserve instance, the reservation term, let's keep it as three year.
However, the payment option is no different bachelor all upfront.
So if you select all upfront, this is something that you will have to pay before itself and then you
get to have the highest discount.
So let's say two, two, three, three is the overall payment for standard reserve instance for the
reservation term of three year old uptrend.
When you select Beisel upfront, then what you do is you have to pay a little lesser, which is one
one eight.
But then the overall monthly payment that you will have to make is thirty five point eight five USPI.
And now let's go ahead and select no upfront.
If you do no upfront, then the total monthly cost, you do not really give anything in advance.
All you do is you pay a monthly cost of seventy four point fifty for us.
However, do know that if you select no upfront, the overall discount will be much more lower.
So if you are sure that you will be running instance for the next three years, then it's always better
to go for all of them, primarily because of the higher discount that it offers.
Now, the next very important topic to consider when purchasing a reserve instance is regional versus
personal reserve instances.
Now, let me, in fact, show you this before we start to discuss more in detail.
Now, whenever you go ahead and try to purchase a reserve instance now within your or when you go ahead
and select this option of a reserve cap.
You see additional option of availability zone has come up.
However, if you go ahead and be selected, the availability zone option has gone down.
So basically by default, this is a regional reserve instance.
However, if you select this, this becomes a zonal reserve instance.
So let's go ahead and look into what is the difference between both of them.
Now, one of the primary difference and the most important one to consider is the ability to reserve
capacity.
So for regional reserve instance, you do not have a reservation in capacity.
So that basically means that if you posses a reserve instance, maybe for three years, then if you
go, then stop and start the instant it can happen that you get insufficient capacity error.
So the reservation is not there for regional area.
For the zonal reserve instance, the capacity is the reserve in a specific availability zone.
So if you're purchasing a zonal array, let's say for a large instant state, then you do not really
need to worry about the insufficient capacity.
The capacity will be reserved for you for that specific availability zone.
Only second is the availability zone flexibility.
And this is the reason why when you go ahead and purchase a reserve instance with the reserve capacity
option on, then you have to specify a specific availability zone.
So let's say that at the instance tapestry micro and the availability zone is USD to one and the payment
on, let's say, 12 months to 36 months.
Now what will happen is this specific instance, type's capacity is reserved for you.
So you do not really need to worry about any error related to the insufficient capacity.
However, if you do not select this and you still purchase the instant state, then you can have insufficient
capacity issues here.
So this is the primary difference.
The second important difference is the availability is flexibility.
So the reserve instance discount applies to instance, use it in any availability zone in a specified
region.
However, if your purchases are, then the discount applies to the instance you set in the specific
availability zone.
Only very important part to remember.
So let's take an example.
Let's say that the airport is a regional array of three dot micro.
Now, if you run that be considered micro instance in any of the availabilities or maybe one B 171,
even if the discount of reserving instance will be applied here.
However, in case of a zonal array, let's say you have parties at the three dot micro for the availability
zone of USD to one.
However, you started the instances in us e one b then this specific discount will not be applied.
So this is for this Donella, right.
All right.
So in case, if you require a capacity reservation, then the availability zone flexibility goes away
for you.
And the third important area is the instant size flexibility.
So for the Reserve, for instance, the discount applies to instant's usage within the instanced family,
regardless of the size.
However, for the Zone Eleri, no instances flexibility is given to you.
That basically means that there is an instance.
This applies to the instance usage of a specific instance type and size only grade.
So let's go ahead and try to implement the learnings with the scenario.
So the scenario is that the customer has the following.
You see two instances running, so they have to see two instance of M, for instance, type that are
running in us, each one and US East one B region.
And they also have to exceed the instance of the type A two large running in us, E, one B and C this
one region.
No customer has purchased the following result instance, which is to reserve instance of M for large
for the US e when we did.
And so this is basically as soon result in a sense that they have purchased and they have also purchased
the reserved instance for too easy to, for the instance type of t to the light.
And this is basically a regional array.
All right.
Now what will happen is based on the resulting instances, the final billing will be applied accordingly.
So what customer will have to do is they have to pay for one extra instance of M for that light at the
OnDemand rate, primarily because that is the instance that they have purchased for M for not light
is based on its own salary and your customer is running to aim for the large one in USD one and taken
in USD two and B.
Now since this zonal arrays based on US E one, B the discount will be applied.
However, that discount will not be applied for the US e one region.
So for the ICC to understand in this region, they'll have to pay.
On demand.
So I hope with this scenario, the overall concept of reserve instance is specifically this zone as
well as the regional area has been much more clear to you.
So with this will conclude today's video.