On-demand, reserved, and spot pricing

On-demand, reserved, and spot pricing are three ways of selling the same capacity with different commitments.

On-demand, reserved, and spot pricing are three ways of selling the same capacity with different commitments. The control plane of a cloud defines these pricing models together with the catalog of instance types. The catalog and the pricing models form the commercial shape of compute. Spot pricing sells spare capacity that the provider can reclaim on short notice. Infrastructure gives discounts for commitment.