AWS Blog

EC2 Price Reductions – Reserved Instances & M4 Instances

As AWS grows, we continue to find ways to make it an even better value. We work with our suppliers to drive down costs while also finding ways to build hardware and software that is increasingly more efficient and cost-effective.

In addition to reducing our prices on a regular and frequent basis, we also give customers options that help them to optimize their use of AWS. For example, Reserved Instances (first launched in 2009) allow Amazon EC2 users to obtain a significant discount when compared to On-Demand Pricing, along with a capacity reservation when used in a specific Availability Zone.

Our customers use multiple strategies to purchase and manage their Reserved Instances. Some prefer to make an upfront payment and earn a bigger discount; some prefer to pay nothing upfront and get a smaller (yet still substantial) discount. In the middle, others are happiest with a partial upfront payment and a discount that falls in between the two other options. In order to meet this wide range of preferences we are adding 3 Year No Upfront Standard Reserved Instances for most of the current generation instance types. We are also reducing prices for No Upfront Reserved Instances, Convertible Reserved Instances, and General Purpose M4 instances (both On-Demand and Reserved Instances). This is our 61st AWS Price Reduction.

Here are the details (all changes and reductions are effective immediately):

New No Upfront Payment Option for 3 Year Standard RIs – We previously offered a no upfront payment option with a 1 year term for Standard RIs. Today, we are adding a No Upfront payment option with a 3 year term for C4, M4, R4, I3, P2, X1, and T2 Standard Reserved Instances.

Lower Prices for No Upfront Reserved Instances – We are lowering the prices for No Upfront 1 Year Standard and 3 Year Convertible Reserved Instances for the C4, M4, R4, I3, P2, X1, and T2 instance types by up to 17%, depending on instance type, operating system, and region.

Here are the average reductions for No Upfront Reserved Instances for Linux in several representative regions:

US East (Northern Virginia)
US West (Oregon)
EU (Ireland)
Asia Pacific (Tokyo)
Asia Pacific (Singapore)
C4 -11% -11% -10% -10% -9%
M4 -16% -16% -16% -16% -17%
R4 -10% -10% -10% -10% -10%

Lower Prices for Convertible Reserved Instances – Convertible Reserved Instances allow you to change the instance family and other parameters associated with the RI at any time; this allows you to adjust your RI inventory as your application evolves and your needs change. We are lowering the prices for 3 Year Convertible Reserved Instances by up to 21% for most of the current generation instances (C4, M4, R4, I3, P2, X1, and T2).

Here are the average reductions for Convertible Reserved Instances for Linux in several representative regions:

US East (Northern Virginia)
US West (Oregon)
EU (Ireland)
Asia Pacific (Tokyo)
Asia Pacific (Singapore)
C4 -13% -13% -5% -5% -11%
M4 -19% -19% -17% -15% -21%
R4 -15% -15% -15% -15% -15%

Similar reductions will go into effect for nearly all of the other regions as well.

Lower Prices for M4 Instances – We are lowering the prices for M4 Linux instances by up to 7%.

Visit the EC2 Reserved Instance Pricing Page and the EC2 Pricing Page, or consult the AWS Price List API for all of the new prices.

Learn More
The following blog posts contain additional information about some of the improvements that we have made to the EC2 Reserved Instance model:

You can also read AWS Pricing and the Reserved Instances FAQ to learn more.

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