Pay-As-You-Go is a billing method that allows you to pay for resources after you use them. You are billed based on the actual usage of resources, such as the number of hours that an ECS instance runs or the amount of data that is transferred. Pay-As-You-Go is suitable for scenarios where the demand for resources is unpredictable, flexible, or short-term1. Pay-As-You-Go has the following advantages for the startup video streaming company:
No upfront payment: The company does not need to pay any fees in advance when they purchase ECS instances. They only pay for the resources that they actually use, which can help them save costs and optimize their cash flow1.
Flexible scaling: The company can easily scale up or down their ECS instances based on the actual demand for their service. They can add more ECS instances during peak hours or events, such as Christmas, and release them when the demand drops. They can also change the configurations of their ECS instances at any time, such as upgrading the CPU, memory, or bandwidth1.
No long-term commitment: The company does not need to commit to a long-term contract or subscription when they use Pay-As-You-Go. They can release their ECS instances at any time without incurring any penalties or fees. They can also switch to other billing methods, such as Subscription or Savings Plan, if their business needs change1.
The other billing methods of ECS are not as suitable as Pay-As-You-Go for the company’s scenario, for the following reasons:
Pay-As-You-Go with Reserved Instances: Reserved Instances are a type of discount coupon that can be used to deduct a portion of the fees incurred by Pay-As-You-Go instances that match the attributes of the Reserved Instances, such as region, zone, instance type, and operating system2. Reserved Instances require upfront payment and have a fixed term of one year or three years. They are suitable for scenarios where the demand for resources is stable and predictable, and where the user wants to enjoy lower prices than Pay-As-You-Go2. However, for the company’s scenario, Reserved Instances are not a good option, because they do not need to purchase a large number of ECS instances for a long period of time, and they want to have more flexibility and scalability in their resource management.
Subscription with Reserved Instances: Subscription is a billing method that allows you to pay for resources in advance for a specific period of time, such as one month, one year, or three years. You are billed based on the specifications and duration of the resources that you purchase, regardless of whether you use them or not. Subscription is suitable for scenarios where the demand for resources is stable and long-term, and where the user wants to enjoy lower prices than Pay-As-You-Go3. Subscription with Reserved Instances can further reduce the cost of Subscription instances by applying the Reserved Instances discounts to them2. However, for the company’s scenario, Subscription with Reserved Instances are not a good option, because they do not want to pay for resources in advance or commit to a long-term contract, and they want to have more flexibility and scalability in their resource management.
Pay-As-You-Go with Savings Plan: Savings Plan is a billing method that allows you to commit to a consistent amount of usage (measured in USD/hour) for a one-year or three-year term, and in exchange, receive a lower price for that usage4. Savings Plan can be applied to any Pay-As-You-Go instances that match the attributes of the Savings Plan, such as region, instance family, or operating system4. Savings Plan is suitable for scenarios where the demand for resources is stable and predictable, and where the user wants to enjoy lower prices than Pay-As-You-Go and more flexibility than Subscription4. However, for the company’s scenario, Savings Plan is not a good option, because they do not want to commit to a consistent amount of usage for a long period of time, and they want to have more flexibility and scalability in their resource management.
References: Pay-As-You-Go - Elastic Compute Service - Alibaba Cloud, Reserved Instances - Elastic Compute Service - Alibaba Cloud, Subscription - Elastic Compute Service - Alibaba Cloud, Savings Plan - Elastic Compute Service - Alibaba Cloud
