Answer / Manindra Nath Singh

Spot Instances are AWS EC2 instances that can be used at up to a significant discount compared to On-Demand pricing, but they may be terminated with short notice if Amazon EC2 needs the capacity back. On-Demand Instances have no upfront commitment and users pay the current hourly rate for usage. Reserved Instances offer significant savings when compared to on-demand instances, but they require a reservation upfront.

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