Instance Types in Compute Farm

What is the difference between On Demand and Spot instance?

Hi @anusha.venkatachalam

On-demand instances are cloud computing resources available at a fixed, higher price and are ideal for applications requiring uninterrupted, predictable availability. In contrast, spot instances offer significantly lower costs but are subject to termination when the current spot price exceeds your bid. They’re suitable for flexible workloads that can tolerate interruptions, such as data processing and simulations. Spot instances provide substantial cost savings but come with less predictability and availability, as they depend on unused capacity in the cloud provider’s data centers. The choice between these models depends on your specific use case and budget considerations.