Which EC2 purchasing option is right for me

Let image you are going on a vacation and want to book a room in a resort

On demand: coming and staying in resort whenever we like, we pay the full price for the time you stay

Reserved: like planning ahead and if you plan to stay for a long time, you book a room for about 1 year, you may get a good discount.

Savings Plans: commit to pay a certain amount per hour for certain period (like will spend 100$ per day for 1 year) and stay in any room type (e.g., King, Suite, Sea View, ...)

Spot instances: the hotel allows people to bid for the empty rooms and the highest bidder keeps the rooms. You can get kicked out at any time

Dedicated Hosts: We book an entire building of the resort

Capacity Reservations: you book a room for a period with full price even you stay in it or not