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For Infrastructure & Operations Professionals

Amazon Brings Pork Belly Economics To Its Cloud

How To Leverage EC2's Spot Instances, And Why You Should

December 23, 2009

By James Staten with John R. Rymer, Mike Gualtieri, Lauren E. Nelson

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Why Read This Report

Amazon Web Services (AWS) introduced an intriguing new innovation to the infrastructure-as-a-service (IaaS) cloud computing market this month — Spot Instances — virtual machines available through a closed spot market. Spot Instances are variably priced based on supply and demand. For I&O professionals, Spot Instances may dramatically improve the cost-effectiveness of hosting in Amazon's Elastic Compute Cloud (EC2). Apps that require significant compute time and either don't have to execute immediately — such as batch processing, simulations, and portfolio risk assessments — or must execute at a low cost will see significant benefit from this new offering. Spot Instances are a vehicle for Amazon to maximize the profitability of its EC2, but they also expand its innovation leadership and differentiation in the cloud computing market.
Tags: Cloud Computing, Infrastructure Architectures, IT Infrastructure & Operations, Server Virtualization, Sourcing & Procurement, Sourcing Strategy & Execution, Systems Management, Technology Pricing & Licensing
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TABLE OF CONTENTS

  • The Era Of Fixed Hosting Costs May Have Just Ended
  • Amazon Spot Instances Bring Spot Market Economics To IaaS
  • Amazon Gets Greater Profitability From Spot Instances

  • RECOMMENDATIONS

    Start Experimenting With Spot Instances Now

  • WHAT IT MEANS

    Compute Capacity Is Evolving Into An Actual Commodity
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