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Cloud Computing Intermediate

What is Spot Instance?

Discounted cloud compute instances that use spare capacity at significantly lower prices but can be interrupted with short notice.

Spot instances (AWS) or preemptible VMs (GCP) offer 60-90% discounts by using unused cloud capacity. The trade-off is that the provider can reclaim instances with 2-minute notice when demand increases.

Ideal for fault-tolerant, stateless workloads: batch processing, CI/CD builds, data analysis, rendering, and distributed computing. Not suitable for databases or long-running stateful applications. Spot fleets and interruption handling strategies maximize savings safely.

Related Terms

Cloud Monitoring
Services that collect, analyze, and alert on metrics, logs, and traces from cloud infrastructure and applications.
SLA (Service Level Agreement)
A formal agreement between a service provider and customer defining guaranteed levels of service availability and performance.
Cloud Migration
The process of moving applications, data, and workloads from on-premises infrastructure to cloud computing environments.
Cloud Computing
The delivery of computing services over the internet, including servers, storage, databases, and software on demand.
AWS (Amazon Web Services)
The world's largest cloud computing platform, offering hundreds of services for compute, storage, networking, and more.
Hybrid Cloud
A computing environment that combines on-premises infrastructure with public cloud services, allowing data and applications to move between them.
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