What price do I eventually pay for a AWS spot-instance and do I drive up the prices

0 votes

I would like to create an auto scaling group [ASG] with spot instances as a supplement to my production ASG that has on-demand instances.

After reading this post , I would like to mimic it but maybe without the dynamic bidding and auto-scaling at first.

So, I was wondering , if I just set the bid price for the spot instances equal to the on-demand price of the instance I use [m3.large] , would I be paying the lowest bid price [for that instance, in the region, in that hour] ??

So if the spot price is $0.01 and my max bid in the ASG is $0.067 , I would be paying $0.01 for every spot instance the ASG launches, right?? [That is what I understood from the AWS docs but I would like a confirmation]

And finally, by this kind of thinking [that I suppose I am not the only one to have] do I drive the spot instance prices up ?

Aug 4, 2018 in Cloud Computing by code_ninja
• 6,300 points

retagged May 31, 2019 by code_ninja 600 views

1 answer to this question.

0 votes
  • Spot instance prices vary according to Availability Zones present in a Region. So you have to pay based on the market price where the launched instances are located.
  • Your bid is only the maximum amount that you want to pay for the spot-instances.
  •  The market prices are driven by availability of free resources and market demand.

when you set a bid price then some of these senarios are followed - 

  • If the market price is less than or equal your bid (Market <= Bid) and there are free resources on spot-instances pool, then you pay the market price.
  • If the market price is higher than your bid (Market> Bid) or there are no free resources on spot-instances pool, your spot-instances will be terminated and no need to pay the current partial hour. You only need to pay the full hours that you used.
  • If you run spot-instances less than an hour and you terminate it by yourself, you need to pay for that partial hour.

example- There are 2 instance available, and there are 3 bids for $1, $2, and $3, the two highest bidders will get the running instances, and the market price would be $1. So, your bid price may drive the spot instance indirectly if you are a winning bidder and there are more open bids than available spot instances

answered Aug 4, 2018 by ArchanaNagur
• 2,360 points

Related Questions In Cloud Computing

0 votes
1 answer

Can someone tell if one Elastic IP address enough for every instance that I have running and would do the job?

Depends! Every instance comes with its own ...READ MORE

answered Jun 26, 2018 in Cloud Computing by brat_1
• 7,200 points
606 views
0 votes
1 answer

AWS: What is the relation between Instance and AMI?

Amazon Web Services provides various methods to ...READ MORE

answered Jul 12, 2018 in Cloud Computing by DragonLord999
• 8,450 points
1,761 views
0 votes
1 answer

What approach do I need to take to upload files to Lambda function and API Gateway services?

If you want to upload bigger than ...READ MORE

answered Apr 17, 2018 in Cloud Computing by brat_1
• 7,200 points
818 views
+1 vote
2 answers

What if I delete default VPC in AWS?What are the consequences?

If you wish to recreate the default ...READ MORE

answered Apr 20, 2018 in Cloud Computing by DragonLord999
• 8,450 points
6,183 views
0 votes
1 answer
+1 vote
2 answers
+1 vote
1 answer

what is difference between elastic IP and public IP?

IP address is used to communicate with ...READ MORE

answered Jul 12, 2018 in Cloud Computing by ArchanaNagur
• 2,360 points
22,041 views
0 votes
1 answer

Intrustion Detection System on the AWS platform

Instruction Detection System (IDS) is different  when compared to ...READ MORE

answered Aug 6, 2018 in Cloud Computing by ArchanaNagur
• 2,360 points
540 views
webinar REGISTER FOR FREE WEBINAR X
REGISTER NOW
webinar_success Thank you for registering Join Edureka Meetup community for 100+ Free Webinars each month JOIN MEETUP GROUP