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What’s the Difference Between On-Demand and Spot Instances?

Discover the key differences between on-demand and spot instances with hiveCompute, and learn how to choose the best option for your needs based on cost, reliability, and performance.

Published on
October 23, 2024
by
Jurgen Stojku

HiveCompute: Choosing Between On-Demand and Spot Instances

If you're thinking about renting GPU instances from Compute with Hivenet, it's good to know the differences between on-demand and spot instances. Each has its pros and cons, and picking the right one can help you get the best performance at the right price for your needs.

On-Demand Instances

On-demand instances are available whenever you need them, with no long-term commitments or upfront payments. You pay a set rate for every second you use them, making it simple to predict costs. These instances are perfect if you want:

  • Reliable Performance: Great for apps that need consistent power without any interruptions.
  • Quick Setup: Ideal for short-term projects that need resources fast.
  • Testing & Development: Useful for environments where uptime and reliability are crucial.

With on-demand instances, you get the flexibility to adjust resources as needed. This means you can scale up or down depending on your workload without worrying about long-term contracts. This flexibility does come at a higher cost compared to other options, like spot instances, but it ensures reliability.

We provide on-demand instances from our network of providers with strict specs that must be met, such as an RTX 4090 GPU.

Pros and Cons of On-Demand Instances

Pros:

  • Easy to set up with predictable pricing.
  • Flexible scaling when you need it.
  • High reliability with no risk of sudden shutdowns.

Cons:

  • Costs more per hour compared to other options.
  • May not be the best choice for tasks that require frequent scaling.

Spot Instances

Spot instances are a budget-friendly option that uses extra compute capacity at discounted rates—sometimes up to 90% cheaper than on-demand. The catch is that the provider can interrupt these instances, making them less suitable for tasks that need to run without interruptions.

Spot instances work well for:

  • Non-Critical Tasks: Best for jobs that can handle interruptions, like batch processing, analytics, or rendering.
  • Testing & Development: Suitable when a temporary, low-cost environment is all you need.
  • Budget-Friendly Projects: Ideal for applications where saving money is more important than continuous uptime.

To make the most of spot instances, you need to design your apps to be resilient. This means using autoscaling, checkpointing, or other strategies to handle interruptions without losing progress.

Pros and Cons of Spot Instances

Pros:

  • Highly cost-effective—great for saving money.
  • Perfect for scaling workloads on a budget.

Cons:

  • Can be stopped with little notice, which means it's less reliable.
  • Needs extra work to make sure your setup can handle interruptions.

Key Differences Between On-Demand and Spot Instances

Feature On-Demand Instances Spot Instances
Pricing Fixed, higher hourly rate Variable, up to 90% discount
Reliability High reliability, no interruptions Lower reliability, subject to interruptions
Use Cases Consistent or critical applications Fault-tolerant, flexible applications
Commitment No commitment, pay-as-you-go No commitment, lower cost

Which Instance Should You Choose?

It all depends on your project:

  • If You Need Stability: Go with on-demand instances for applications that need consistent performance without interruptions.
  • If You Want to Save Money: Choose spot instances if you have workloads that can manage potential interruptions.

For many users, a mix of both is the best approach. You could use on-demand instances for critical parts of your workload and spot instances to handle any extra demand when it comes up. This way, you keep costs low while ensuring your essential processes run smoothly.

Picking between on-demand and spot instances comes down to balancing cost, reliability, and how much interruption your application can tolerate. Compute with Hivenet gives you the flexibility to find that balance.

Frequently Asked Questions (FAQ)

1. What is the main difference between on-demand and spot instances?

On-demand instances are always available and provide uninterrupted performance, while spot instances use spare capacity at a lower cost but can be interrupted. Choose on-demand for reliability and spot for cost savings if your application can tolerate interruptions.

2. When should I choose on-demand instances?

On-demand instances are perfect for workloads that need steady, uninterrupted performance. They are ideal for applications where reliability is crucial, like running critical services, short-term projects that need to get started immediately, or for testing and development environments that cannot afford interruptions.

3. What kind of projects are suitable for spot instances?

Spot instances are best for projects that can handle interruptions, such as batch processing, data analytics, or rendering tasks. They are also useful for cost-sensitive applications where saving money is more important than ensuring continuous uptime.

4. How can I make my applications resilient when using spot instances?

To make your application resilient, consider using strategies like autoscaling to automatically adjust resources, checkpointing to save progress, and retry logic to resume tasks when instances are interrupted. This helps ensure your work isn’t lost even if an instance stops suddenly.

5. Are spot instances always cheaper?

Yes, spot instances are usually much cheaper—sometimes up to 90% less than on-demand instances. However, keep in mind that they can be interrupted at any time, so they are best for applications that can afford occasional disruptions.

6. Can I mix on-demand and spot instances?

Absolutely! A hybrid approach often works well. You can use on-demand instances for core, critical parts of your workload and spot instances to handle extra, non-critical demand. This way, you balance cost savings with reliability.

7. How does pricing work for on-demand instances with Compute with Hivenet?

With Compute with Hivenet, on-demand instances are billed by the second, making it easy to only pay for exactly what you use. There’s no upfront cost, and you have the flexibility to scale as needed.

8. What if my workload changes over time?

If your workload changes, you can easily adjust the number of on-demand or spot instances you’re using. On-demand instances are particularly flexible, allowing you to scale up or down depending on current needs without worrying about long-term commitments.

9. Are there any commitments or long-term contracts required?

No, both on-demand and spot instances are available without long-term commitments. You pay as you go, which provides flexibility and control over your budget.

10. How do I get started with Compute with Hivenet?

Getting started is easy. Just sign up on our platform, choose the instance type that fits your project, and you’re ready to go. Whether you choose on-demand or spot instances, Compute with Hivenet offers a flexible solution to match your needs.

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