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"Taking these requirements into account, we’ve created a new EC2 pricing model, which we call Reserved Instances. After you purchase such an instance for a one-time fee, you have the option to launch an EC2 instance of a certain instance type, in a particular availability zone, for a period of either 1 of 3 years. Your launch is guaranteed to succeed; there’s no chance of encountering any transient limitations in EC2 capacity. You have no obligation to run the instances full time, so you’ll pay even less if you choose to turn them off when you are not using them."
Announcing Amazon EC2 Reserved Instances. Wow, this is excellent news! It just saved me at least $1,100 for the year, and it will save my customers even more.
