On-Demand Instances
On-Demand Instances are a cloud computing pricing model offered by providers like AWS, Azure, and Google Cloud, where users pay for compute capacity by the hour or second without long-term commitments. They provide flexible, scalable virtual servers that can be launched and terminated as needed, ideal for variable workloads. This model eliminates the need for upfront investments in physical hardware, allowing businesses to adapt quickly to changing demands.
Developers should use On-Demand Instances for short-term, unpredictable, or experimental workloads where flexibility is key, such as development and testing environments, proof-of-concept projects, or applications with sporadic traffic spikes. They are cost-effective for scenarios where usage cannot be predicted in advance, avoiding the risks of over-provisioning or under-utilization associated with reserved instances. However, for steady-state production workloads, alternatives like Reserved Instances or Spot Instances may offer better cost savings.