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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

CloudFormation
An AWS service that provisions and manages cloud resources using declarative JSON or YAML templates.
VPC (Virtual Private Cloud)
An isolated virtual network within a cloud provider where you can launch resources with full control over IP addressing, routing, and security.
Cloud Monitoring
Services that collect, analyze, and alert on metrics, logs, and traces from cloud infrastructure and applications.
AWS (Amazon Web Services)
The world's largest cloud computing platform, offering hundreds of services for compute, storage, networking, and more.
Auto Scaling
Automatically adjusting the number of computing resources based on current demand to maintain performance and optimize costs.
Cloud Storage Tiers
Different storage classes offered by cloud providers, optimized for varying access patterns from frequent to archival use.
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