Can somebody explain me Instance on Demand on AWS

Question

I was watching the prices of Instance on Demand on Amazon AWS...

http://aws.amazon.com/pt/ec2/pricing/

The maximum price is 4,6 dollars an hour..... That is the price for Octuple ExtraLarge( I believe that is the name in English , I have only the portuguese name)........

To me that price it doesnt make sense....

4,6 dollars an hour...It will cost me only 3312 dollars/ month....

I still have to pay for the data transfer and storage I know, but the price of the Instance on Demand is very low....

Even if I have a ver very very very very very very heavy application, I will only pay 3312 by the end of the month?

Answer 1

Yes, you're right, you will pay only 3312 by the end of the month, no matter what you run on the server (EC2 instance). But you can make this price much lower by purchasing a "reserved instance". In this case you will be committed to pay for the whole year, but the monthly/hourly price will be decreased significantly. See http://aws.amazon.com/ec2/reserved-instances/