Amazon Instance Purchasing Options On-Demand instances Pay by hour Reserved instances Reserve for one month – one year Consistent heavy use, lower hourly running costs Spot instances Bid for unused instances Dedicated instances Not mix with instances from other accounts Dedicated hosts

Spot Instances Hourly price varies based on demand Amazon EC2 can terminate an spot instance when the price changes or no unused instances available m4.xlarge 4 13 16 EBS Only $0.336 per Hour Presentation title | Presenter name

Cost Comparison Amazon Elastic Compute Cloud running Linux/UNIX $0.168 per On Demand Linux m4.large Instance Hour 234 Hrs $39.31 Total: Amazon Elastic Compute Cloud running Linux/UNIX Spot Instances m4.large Linux/UNIX Spot Instance-hour in Asia Pacific (Sydney) in VPC Zone #52 92 Hrs $1.70 Total: Presentation title | Presenter name

Launch a Spot Instance Presentation title | Presenter name

Amazon Spot Instances – Concepts Spot instance pool Spot price Spot instance request (or Spot bid). Spot fleet—A set of Spot instances that is launched based on criteria that you specify. Spot instance interruption. Bid status Presentation title | Presenter name

Preparing for Instance Termination Design fault-tolerant software Store intermediate results to a persistent storage from time to time Divide compute into small tasks or use check points Make use of the 2-minutes notification time before instance termination to save states Presentation title | Presenter name

Pricing Strategy Amazon does not disclose its underlying pricing policies other than stating the following: “The hourly price for a Spot instance (of each instance type in each Availability Zone) is set by Amazon EC2, and fluctuates depending on the supply of and demand for Spot instances. ” User satisfaction based resource management using demand based pricing[chen et al. 2011] “Prices are typically not determined according to Amazon’s public definition of the spot pricing system. Rather, the evidence suggests that spot prices are usually drawn from a tight, fixed range of prices, reflecting a random reserve price that is not driven by supply and demand.” [O. A. Ben-Yehuda et al. 2013] Presentation title | Presenter name

Resource Management for Cloud Users Infrastructure service offers different types of VM instances Prices of VM instances change according to supply/demand Price history of three instance types on Amazon EC2 (Linux, California, US, Jan 1 – Jan 15, 2011). Instance type CPU (core) Memory (GB) Storage (GB) Small 1 1.7 160 Large 2 7.5 850 Extra Large 4 15 1690

Run Applications on Different Types of VMs Deploying business service capacity on different types of instances produces performance differences X264: Encoding 512-frame 1080p video streams Postmark: IO transactions (1000 files, 5MB each) Black Sholes:price European-style options in financial market Instance type X264 Postmark Black Scholes mean (s) stdev Small 402.9 4.9 153.4 8.8 943.4 5.9 Large 101.2 1.6 97.0 6.3 180.4 3.0 Extra Large 56.6 1.0 80.7 5.8 109.6 1.7