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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 Cost Optimization
Strategies and practices to reduce and control cloud computing expenses while maintaining performance and availability.
Cloud Load Balancer
A managed service that distributes incoming network traffic across multiple servers to ensure high availability and optimal resource utilization.
Region and Availability Zone
Geographic locations where cloud providers operate data centers, with zones providing redundancy within a region.
IAM (Identity and Access Management)
A framework for managing digital identities and controlling who can access which cloud resources and services.
Virtual Machine (VM)
A software-based emulation of a physical computer that runs its own operating system and applications.
Cloud Computing
The delivery of computing services over the internet, including servers, storage, databases, and software on demand.
View All Cloud Computing Terms โ†’