Spot instances in EC2 | AWS EC2 cost optimization | AWS Tutorial for beginners in Malayalam

Learning becomes easy when explained simply and easy to relate real-life examples. We taken that as the base of this video and tutorial. Its in Malayalam language.
EC2 Spot instances are one of the Popular cost saving option in AWS.
Discover what Spot Instances are and how they can significantly reduce your AWS costs. We'll cover the basics of Spot Instances, their benefits, and how they differ from On-Demand Instances.
Whether you're looking to optimize your cloud spending or simply want to understand the various instance types available on AWS, this video is for you!
Join us as we explore real-world use cases and best practices for leveraging Spot Instances effectively.
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What Are EC2 Spot Instances?
EC2 Spot Instances are a type of Amazon Elastic Compute Cloud (EC2) instance that allows you to bid on spare computing capacity in AWS. They are typically offered at a significantly lower price than On-Demand Instances, making them a cost-effective option for running applications that are flexible in terms of when they can be executed.
Key Features
Cost Savings: Spot Instances can be up to 90% cheaper than On-Demand Instances, allowing you to optimize your cloud spending.
Flexible Pricing: You specify the maximum price you're willing to pay for an instance, and AWS sets a current Spot price based on supply and demand. If your bid exceeds the Spot price, your instance runs.
Variable Availability: Spot Instances can be interrupted by AWS with a two-minute notice if the Spot price rises above your bid or if capacity is no longer available.
Automatic Scaling: Spot Instances can be integrated with Auto Scaling groups, allowing you to automatically increase or decrease capacity based on demand while optimizing for cost.
How Spot Instances Work
Bidding: You place a bid for Spot Instances, and if your bid exceeds the current Spot price, your instance will launch. The Spot price fluctuates based on supply and demand.
Interruption Handling: Since Spot Instances can be interrupted, it's essential to design applications that can handle such interruptions. AWS provides the ability to save state or checkpoint work to mitigate data loss.
Spot Fleet: This feature allows you to manage multiple Spot Instances and request a combination of Spot and On-Demand Instances, providing a more stable environment.
Use Cases
Batch Processing: Great for tasks that can be run in parallel, such as data analysis, image processing, or rendering.
Web Applications: Suitable for stateless applications that can easily scale up and down based on demand.
Development and Testing: Cost-effective for development and testing environments where resources can be allocated dynamically.
Big Data: Perfect for big data analytics jobs that can benefit from the low-cost, scalable nature of Spot Instances.
Differences from On-Demand Instances
Pricing: Spot Instances are much cheaper than On-Demand Instances but can be interrupted, while On-Demand Instances have a stable price and guaranteed availability.
Availability: On-Demand Instances are always available, whereas Spot Instances depend on current supply and demand.
Use Case Flexibility: Spot Instances are ideal for workloads that can tolerate interruptions, while On-Demand Instances are better for critical applications requiring consistent uptime.
Best Practices
Implement Fault Tolerance: Design your applications to handle interruptions gracefully, using techniques like checkpointing and state saving.
Monitor Spot Pricing: Keep an eye on Spot prices and adjust your bidding strategy accordingly.
Diversify Instance Types: Use a mix of instance types in your Spot Fleet requests to increase the chances of maintaining your required capacity.
Leverage Auto Scaling: Use Auto Scaling groups to manage Spot Instances along with On-Demand Instances for better resource allocation and cost efficiency.
Use Spot Instance Advisor: AWS provides tools to help you choose the best instances based on historical data and availability trends.
Conclusion
EC2 Spot Instances offer a powerful way to save costs on cloud computing by taking advantage of unused AWS capacity. By understanding how they work and implementing best practices, you can optimize your workloads effectively while minimizing expenses.